A new study released from the Kaiser Family Foundation investigated what the impact would be if the age of eligibility for Meidcare was increased from 65 to 67 in 2014. The study found that the move would indeed save the federal government a lot of money– $7.6 billion in fact, but it also found that there are downsides to the change. Increasing the age would pass on an added $5.6 billion in out-of-pocket expenses for about five million 65 and 66-year-olds as well as $4.5 billion to employer retiree health care costs.

The study also says that changing Medicare’s requirements would mean a 3% increase in premiums for those who remain on Medicare and for those who receive coverage through the new health care reform insurance exchanges. About three in four 65 and 66-year-olds would pay an average of $2,400 more for health care in 2014 than if the current system remained in tact. One-fourth would see a drop in out-of-pocket expenses. “Raising Medicare’s age of eligibility would obviously reduce Medicare spending, but would also shift costs onto seniors and employers, and increase costs elsewhere on the federal ledger,” said Kaiser Family Foundation Vice President Tricia Neuman in a news release. Neuman leads the new Kaiser Project on Medicare’s Future.  ”This analysis drives home the tough policy choices that lie ahead when Washington gets serious about reducing the federal deficit.”

This study is the first to investigate the impact health reform will make on seniors’ expenses. Without reform, the organization says other studies have shown that raising Medicare’s age requirement would increase the number of uninsured people. By increasing the age for Medicare to 67 in 2014, that would mean $31.1 billion in Medicare savings because people who are 65 or 66 would not be included.