Kevin Drum thinks
we should let the dead pay for medicare. In essence, each time you received medical care paid for by medicare, you'd receive a bill, due upon your death. If you die without sufficient money to pay it off, oh well, these things happen. If you die with money, medicare gets first dibs on it, before your kids.
This plan has some face validity to it. Considering the span between dirt poor and upper middle class, it's pretty progressive, especially compared to raising the eligibility age.*
But... like all taxes designed to soak the rich, it's going to hurt the inflexible more than the flexible, and that means that in the span between upper middle class and ultra rich, it's extremely regressive. Rich people can structure their estates, with things like trusts and insurance, to avoid the tax**. Drum handwaves this away by suggesting we pass laws against it, but that's really hard to do, unless you're going to ban old people from sending their grandchildren $10 for their birthday***. What the media calls "loopholes" were often put there for a reason, and you can't argue for closing them without understanding what that was. On the other hand, I don't know how much the ultrarich use medicare: unlike medicaid, it's possible to get good doctors with medicare, but not necessarily the best, and not necessarily on your preferred timetable. And medicare doesn't cover home-care/nursing home care very much if at all, which is a huge expense if you make it to that point in life. And of course there's no cost savings once someone accumulates more bills than they believe their estate will pay off, but there's no cost savings in that situation now either, so we've hardly hurt things.
What if we added a small interest charge? If you're poor and know you'll never pay off the bill, you still ignore it. But if you're middle class and planning on leaving an estate, better to pay it off now****? Or maybe that just incents more estate structuring. I really don't know about this one. But I do have to give Drum a cookie for coming up with a genuinely new proposal, there aren't enough of those in this area.
*I'm pro-raising-eligibility-age for other reasons, but even I have to admit it's horribly regressive, given that poor people die sooner. Actually, with the information at hand we can only prove delta is regressive. Depending on the relative payroll tax contributions, the system as a whole could still deliver the desired about of progressivity. Suppose we had a program that took $5 from the poor and $15 from the rich, and gave them each back $10. Then we change it to give the poor $9 and the rich $11. You've certainly made the system less progressive relative to its starting point, but you could argue it's still a progressive program, given that the poor make $4 off it and the rich lose $4. Or you could argue that the rich get more back so it's automatically regressive. Defining these things is harder than you'd think.
**I know this is true because that's how I define rich: middle class is when you have an estate (or say, an estate over $N, everyone leaves a few things behind), rich level 1 is when you preemptively structure your estate with a lawyer to lessen taxes (which means your estate is over the exemption level, which I think is currently $1 million), rich level 2 is when you start structuring your actual money you have while living to reduce taxes (for example, purchasing municipal bonds because they're tax free). It's not a perfect definition, but on the whole it works for me.
***And as a heartless libertarian, I'd at least consider not allowing people to give money to others when they're not paying for their own medical care. But most people won't.
****For a properly defined interest rate.