hypercrites

1.  Use their subsidy and enter the private market.

Not enough specifics, which means it can be rigged by the private market.  Gimme the details first.

2.  Participate in the Medicare Health Exchanges that are like the ACA (obamacare) exchanges and administered by government where they can choose or taylor a plan that suits there needs. 

I do believe that you mean "they can choose or TAILOR a plan that suits..."...anyhoo... that's "picking winners and losers". I need more details on that, too.

3.  Opt to participate in the traditional Medicare program run buy the government.

I'd go for that, but with certain specific reforms, like the outcome-based payment plan and "hot-spotting" that Obamacare offers, which doesn't exist elsewhere currently.

Additionally, the age to qualify for Medicare will go up by two months each year until the entry age is 67.

Age related infirmities begin in in the late 40's, which means age related infirmities won't get treated when they're small and instead be treated when they get catastrophic--so that's a big fail.

Sound like a good plan?

Not only no, but HELL NO.