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This is a 'loop hole' that bothers me a bit.
Younger retired people that could easily pay for their insurance but since only income is counted, they are subsidized.
I know of several couples that retired in their late 50's and have much more in savings that I could ever have amassed but have low enough income and pay less a month for the two of them than I do for Medicare plus supplements( and high deductible ones, at that) for only one of me.
the problem is most wealth is tied up in peoples house's so it is not avail for spending .
it would be very unfair had they only counted liquid assets and if they counted ill-liquid assets that would work out no better as folks couldn't pay the premiums and out of pockets with the living room .
medicare only counts assets when they are sold and becomes taxable income as well .
Last edited by mathjak107; 01-18-2017 at 06:28 AM..
At the Senior Center we have lots of interesting conversations about health and money. The big topic now is the end of Obama Care and the subsidies many of us get from Uncle Sam to pay for our Health Insurance. (The younger group under age 65)
Many of us are scared to death that under the Republican health care repeal and replace plan, middle income folks will get caught flat footed and have to cover their entire health insurance premium.
Right now we have a sweet deal that allows us to have a million dollar or more in assets and still get a subsidy because our actual income is low. Many of us only pull money out of a ROTH IRA or bank accounts to pay for expenses above and beyond Social Security. Roth or pulling money out of the bank is not counted as income. So my wife and I only pay a small amount ($200) for our monthly health insurance premium. (The rest is paid by the tax payers.)
How about you?
It's not Uncle Sam that is paying your health insurance; it's taxpayers....most of whom do not have a million dollars or more in assets. It's time your 'sweet deal' ends.
medicare is no different . you can have millions in assets but the only time they count in setting your premium level is when they are sold and become taxable income ..
you pay the same low premium as folks with a lot less in assets until something is sold .
It's not Uncle Sam that is paying your health insurance; it's taxpayers....most of whom do not have a million dollars or more in assets. It's time your 'sweet deal' ends.
So you have a million dollars. Your retired and need to make that money last for over thirty years. Assuming a 4% annual withdrawal that is only $40K a year. If you have to spend tons of money on health care premiums that have gone way up due to Obama Care rules, don't you deserve some help from the taxpayers?
This is a 'loop hole' that bothers me a bit.
Younger retired people that could easily pay for their insurance but since only income is counted, they are subsidized.
I know of several couples that retired in their late 50's and have much more in savings that I could ever have amassed but have low enough income and pay less a month for the two of them than I do for Medicare plus supplements( and high deductible ones, at that) for only one of me.
It bothers me too but not the 50s something. Younger bums in their 30s and 40s, who are capable of working, but know how to milk the system. Not good for the economy.
medicare is no different . you can have millions in assets but the only time they count in setting your premium level is when they are sold and become taxable income ..
you pay the same low premium as folks with a lot less in assets until something is sold .
If the subsidy is taken away you will find lots of retired folks looking for a job again or going without insurance.
A lot of people don't have subsidy. My kid doesn't get any subsidy, she doesn't have a lot of assets either, she gets her plan on the market. So I doubt about the going without insurance part.
we all pay taxes for a long time too if we have decent jobs and a strong work history . no different really . if you earning enough money to accumulate the level of assets we are talking about you can be sure they likely paid in a whole lot more taxes than 3/4's of the country ,if not more
Quote:
Originally Posted by NewbieHere
People pay into Medicare for a long time.
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