Medicare, like SS, is a pay as you go system. Today's workers pay for today's retirees. In 1950 there were 16 workers for every retiree; today it is three workers; and by 2030 there will be two workers for every retiree. People are living longer. Medicare has been running in the red since 2008.
In 2014, Medicare provided health insurance coverage to 53.8 million people at a cost of $613 billion roughly the GDP of Argentina. The average value of the Medicare benefit per enrollee was $12,432, about 2 percent higher than last year.
But the report warned that several million Medicare beneficiaries could see their Medicare Part B monthly premiums skyrocket by 52 percent in January from $104.90 to $159.30. Medicare Part B, which is paid for by a combination of federal funds and beneficiary premiums, generally covers physician and outpatient costs.
The huge rate hike is predicted because of a confluence of two factors: Medicare Part B costs increased more than expected last year, and Social Security is not expected to have a cost of living increase next year. By law, the cost of higher Medicare Part B premiums cant be passed on to most Medicare beneficiaries when they dont get a Social Security raise. As a result, the higher Medicare costs have to be covered by just 30 percent of Medicare beneficiaries. This includes the 2.8 million Medicare enrollees new to the program next year, 3.1 million Medicare beneficiaries with incomes higher than $85,000 a year and 1.6 million Medicare beneficiaries who pay their premium directly instead of having it deducted from Social Security. An additional 9 million people affected by the higher rates are so called dual eligibles those on Medicare and Medicaid. States pay the Medicare Part B premium for duals.
Wonder if those projections take into account the much lower pay among the younger workers. SS tax is based on a percentage of wages. Means less money flowing in per head. One of the reasons I’m sure for pushing higher hourly min salaries.
Why MSM is keeping mum on the $2500 savings every family was going to receive due to Obamacare? Does that mean Obama lied?