Friday, October 16, 2015

Medicare and Who Pays?

Over the past few years I have analyzed the falacy that Medicare is a "gift" to those getting it. In the NY Times today there is a piece on the increased costs of Medicare. They state:

Even some affluent beneficiaries could struggle with the higher costs. For those with incomes of more than $214,000 a year, Medicare actuaries say, premiums next year could exceed $500 a month, up from about $335, if Congress does not change the law. Financially struggling state governments are expressing concern because they are responsible for many low-income beneficiaries.

 Now this means that a family making $214,000 in New York or New Jersey is paying the highest income tax for Federal and State and in addition is paying 3% (actually 2.9%) on the $214,000, or about $6,000 per person, plus a MediGap plan of about $4,000 per person, so we have $20,000 per family on a $214,000 salary or almost 10% of the salary going for Medicare in addition to 50 years of contributions!

Whereas some 30 year old with no job and a family gets to ride for $50 per month!

What is wrong with this picture? Oh and yes, there is a deductible as well, and drugs are barely covered. And also these costs are NOT tax deductible! So this is what the ACA has brought, taxing the older folks to pay for the younger ones without jobs. Generational warfare?