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The question is - buy into Medicare at what price? What should the upfront, one-time buy-in be? 65 minus your age, multiplied by $25,000? So a 60 year old would buy-in at a rate of (65-60)*$25,000=$125,000 one time payment? Plus monthly premiums of what - say, $2,000?
I don't understand the one-time buy-in. What is that for?
1. The fact that younger people do not use healthcare as much as the older ones would compensate for the fact that younger people contributed 15 years less in Medicare taxes. Plus, many (likely most) of the 50-64 year olds would probably continue to work anyway (at least part time, or on temporary contracts) and contribute Medicare taxes.
I agree that part-time or freelance work is a possibility, but let's take the case of someone who just plain leaves the workforce at age 55 after working for 33 years. Under the current system they get nothing for their contributions till age 65. This proposal means they immediately get Medicare A at no charge (due to previous contribution record) and Medicare B at a rate subsidized by the taxpayers. Granted, they'll be cheaper to insure than the 65-and-up people but if they pay even what the 65-and-up people are paying they're not paying the full cost. That money has to come from somewhere.
Quote:
Originally Posted by Kthnry
I don't understand the one-time buy-in. What is that for?
One of the things keeping Medicare afloat (sort of) is that most people pay into Medicare far longer than the 40 quarters they actually need to in order to qualify. Those extra years are higher-earning years, too. In my case, I was at the max salary bracket the last 28 years of my 38-year career but of course kept paying in even though I had enough quarters to qualify. Take people like that out of the premium base and the money has to come from somewhere else.
I don't understand the one-time buy-in. What is that for?
Part A I think runs 413 a month for seniors without enough credits for it free . So that is almost 5k a year and part B full fare is 11k plus about 400 a year for a drug plan..
So you are looking at a cost of about 16k per year per person or 32k a couple if you were to pay on your own.. Medicare ain’t cheap when the govt is not picking up 75% or so of part B..
Keep in mind Medicare only pays 80% and does not Pay in full for a lot of stuff ,so you still need medigap to cover what is not covered ..
Last edited by mathjak107; 01-04-2019 at 04:53 PM..
I agree that part-time or freelance work is a possibility, but let's take the case of someone who just plain leaves the workforce at age 55 after working for 33 years. Under the current system they get nothing for their contributions till age 65. This proposal means they immediately get Medicare A at no charge (due to previous contribution record) and Medicare B at a rate subsidized by the taxpayers. Granted, they'll be cheaper to insure than the 65-and-up people but if they pay even what the 65-and-up people are paying they're not paying the full cost. That money has to come from somewhere.
One of the things keeping Medicare afloat (sort of) is that most people pay into Medicare far longer than the 40 quarters they actually need to in order to qualify. Those extra years are higher-earning years, too. In my case, I was at the max salary bracket the last 28 years of my 38-year career but of course kept paying in even though I had enough quarters to qualify. Take people like that out of the premium base and the money has to come from somewhere else.
Maybe people aged 50-64 could be charged a premium for Part A. Because of the size of Medicare insurance pool, it would be possible to keep that premium lower than that of private insurers. What I mostly think about are West European models of healthcare (where almost everybody pays a national health insurance premium - which is separate from other taxes - and very few people have subsidized healthcare). The reason why medical care in Europe is good and free when you need it is that so many people pay into it, and few are subsidized. The massive number of participants in national insurance also keeps premiums relatively low. The situation is similar in some zip codes in Massachusetts where almost everyone is employed and participates in MA Health Connector (MA has likely the most affordable hc insurance in the nation, one of the reasons why I still live here - 6 more years til I hit 65). You'd be surprised how rapidly money adds up with increased number of participants. Inclusion of 50-64 yo people who pay Medicare premium (particularly if they are also required to pay some premium for Part A) could be the solution that would keep Medicare solvent.
In addition to near-universal participation spreading the risk across the board, Western European nations don't have the labyrinth of middlemen and high-profit-margin insurers and providers that we do. They have single-payer systems that help keep the cost of medical procedures and drugs manageable.
Part A I think runs 413 a month for seniors without enough credits for it free . So that is almost 5k a year and part B full fare is 11k plus about 400 a year for a drug plan..
So you are looking at a cost of about 16k per year per person or 32k a couple if you were to pay on your own.. Medicare ain’t cheap when the govt is not picking up 75% or so of part B
Part B is 11k per year? Are you talking about Medigap with no deductible? I thought regular government Medicare Part B cost only about $200 per month?
Again, if every senior between ages 50 and 64 paid the premium for Part A, that premium could be lowered well below the figure of 5k that you are mentioning.
In Boston MA, in the middle/upper middle class neighborhood where I live (I was told by MA Connector that premiums are calculated by zip code), at the age of 58/59, I pay something like $396 per month for a high-deductible plan (I think the deductible is $7.5k). I honestly don't think there is a single household in my zip code that is subsidized, everybody pays into Connector plans. That is why the premiums are low: large number of participants.
Part A I think runs 413 a month for seniors without enough credits for it free . So that is almost 5k a year and part B full fare is 11k plus about 400 a year for a drug plan..
So you are looking at a cost of about 16k per year per person or 32k a couple if you were to pay on your own.. Medicare ain’t cheap when the govt is not picking up 75% or so of part B
That sounds about right since I was paying $900/month, or a little over $10K per year for a high-deductible plan with a crappy network in 2017. If we let younger people in with no buy-in amount that's a whole lot more to subsidize even if we allow for the fact that they'll be less expensive to insure.
Part B is 11k per year? Are you talking about Medigap with no deductible? I thought regular government Medicare Part B cost only about $200 per month?
Again, if every senior between ages 50 and 64 paid the premium for Part A, that premium could be lowered well below the figure of 5k that you are mentioning.
In Boston MA, in the middle/upper middle class neighborhood where I live (I was told by MA Connector that premiums are calculated by zip code), at the age of 58/59, I pay something like $396 per month for a high-deductible plan (I think the deductible is $7.5k). I honestly don't think there is a single household in my zip code that is subsidized, everybody pays into Connector plans. That is why the premiums are low: large number of participants.
Medicare part B runs 11k per person ... at the lowest income levels you pay 25% and the govt pays 75% .... at the higher income levels you pay 80% and the govt pays 20% of that 11k .. that is ONLY FOR PART B
When you take a Medicare advantage plan Medicare actually sends a check for 11k to the insurer to handle you .. they keep the 11k for every insured and use it to pay for claims along with your premiums
Last edited by mathjak107; 01-04-2019 at 04:59 PM..
Medicare part B runs 11k per person ... at the lowest income levels you pay 25% and the govt pays 75% .... at the higher income levels you pay 80% and the govt pays 20% of that 11k .. that is ONLY FOR PART B
When you take a Medicare advantage plan Medicare actually sends a check for 11k to the insurer to handle you .. they keep the 11k for every insured and use it to pay for claims along with your premiums
Gasp. The average cost of OUTPATIENT services cannot possibly be $11k per year. No wonder insurers are doing well.
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