Here we go again. Another year, another Trustee report, stating Medicare and Social Security will be insolvent in a few more years.
Increase Medicare premiums and cut Social Security benefits.
They also want to push more seniors out of Original Medicare and into Medicare Advantage plans. This will “save money” by shifting the cost of care to the beneficiary.
Why Do Sick People Leave Medicare Advantage Plans?
Who Pays for Medicare and Social Security?
Here is where it get’s interesting.
In the Medicare report, the program’s Part A hospital fund is projected to have enough reserves to pay all claims until 2026 – the same outlook as last year. The much larger fund that supports spending for Parts B (doctors, outpatient costs, and equipment expenses) and D (prescription drugs) is funded largely by taxpayers from each year’s federal budget.
In the Social Security report, the program’s overall solvency was extended to 2035 from 2034 last year, due to significant changes in the program’s disability insurance (DI) fund. It is now projected to have enough funds to pay all claims until the year 2052, an unexpected 20-year improvement from last year’s reports. When it does run short of money, disabled beneficiaries would still receive 91 percent of their benefits. – PBS
I am still working and collecting a paycheck. Even though I am collecting Social Security and enrolled in Medicare, I am still paying taxes to fund those programs.
You might say I am paying for these benefits three times.
Once before I turned 65 through payroll taxes.
Then after turning 65 and I started paying premiums.
And again post 65 because I continue to work.
I also pay Medicare Part B premiums in addition to Medigap and Part D premiums.
Increase premiums on Medicare and cut Social Security benefits.
They also want us to give up Original Medicare (no networks) and enroll in MANAGED CARE Medicare Advantage plans.
Here is just one of the CMS sales pitches.
Over 90 percent of the 41 million Medicare beneficiaries across America could have access to Medicare coordinated care programs and other health plan options in 2005. Most of these health plans offer benefit packages that are increasingly generous: beneficiaries who must buy Medigap coverage on their own or who cannot afford Medigap will save nearly $100 a month on average compared to traditional Medicare with Medigap. The unprecedented availability, enhanced benefits, and increased savings in Medicare Advantage are the result of the Medicare Modernization Act of 2003. – CMS
Almost makes you sound foolish for NOT enrolling in an Advantage plan.
Yes, that was in 2005 but the sales pitch from CMS is still the same. “Try it, you will like it”.
You can always come back to Original Medicare, but . . . you may LOSE your eligibility for a Medicare supplement plan.
Why don’t they talk about that?
Solving the Medicare Problem
Medicare Part B premiums are paid by Medicare beneficiaries. Most are retired. A few (like me) still work because we enjoy what we do.
But many of those age 65 and older work because they HAVE TO.
There are 160 million people in the U.S. labor force.
Currently 44 million are on Medicare.
Rather than raising premiums and cutting benefits on the 44 million on Medicare, why not RAISE TAXES on those still working?
Just saying . . .