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Fortune
Fortune
Richard Eisenberg

How the ‘Medicare Cliff’ is raising costs and worsening health for many older low-income adults

(Credit: Getty Images)

When you turn 65, a rite of passage is qualifying for Medicare to cover most of your health costs. But for more than a quarter of a million of low-income Americans, that day brings them perilously to what’s known as the Medicare Cliff.

These people—predominantly female and often Black or Hispanic—have significantly higher out-of-pocket medical costs compared to others with Medicare. They also experience a substantial worsening of their health in the two years after hitting the Medicare Cliff, according to a new study by the National Council on Aging and the LeadingAge LTSS Center at University of Massachusetts, Boston.

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