A few facts:
~ If you are employed you are paying 1.45% of your income for Medicare Part A (hospital and inpatient care) through your withholding taxes. Your employer also pays 1.45% of your income for Medicare Part A. In theory, this money is set aside until you are eligible for Medicare then it is used to pay 80% of your hospital and inpatient care expenses.
~ Medicare Part B (doctor and other health care provider services) is funded by those 65 and older who pay $135.50 or more each month. This premium is dependent upon your annual income and increases each year.
~ Medicare Part D (prescription drug coverage) is an additional premium. I was unable to gather premium information without getting too far into applying for a Medicare Part D plan.
~ In case you're wondering, Medicare Part C is for Medicare Advantage Plans.
~ Medicare covers up to 80% of most medical bills. Most people 65 and older obtain supplemental insurance out of pocket to cover the remaining 20%.
Let's do some calculations to see if Medicare for all would work for you. If you earn $100,000. per year you will be paying $1450 and your employer will be paying $1450 for your Medicare Part A coverage. At an income of $100,000 you will also be paying approximately $135.50 or more per month or $1626/ year for doctor and other health provider coverage. Using these numbers you have an out of pocket cost of $3070/ year. But wait! That doesn't include prescription coverage so your annual premium would most likely be more.
At this point you may be thinking, that's not bad. Perhaps it's less than you pay now for medical insurance? Oh, but remember $3070 is only for 80% of your medical coverage. Also, if you have a spouse, and children, you or they will be paying an additional amount for their coverage as well. So, a family of 4 could be looking at an out of pocket cost of over $12,280 per year for an 80% coverage of your medical expenses. How does that compare with what you are currently paying?
Let's say you have a hospital stay that results is combined expenses of $75,000. Medicare will cover $60,000. If you didn't carry supplemental health insurance how would you fund the remaining balance of $15,000?
Obviously, my numbers are purely speculative as no one has explained how this would all work out. Being the cynic that I am when it comes to politics and "free" stuff, I would hazard a guess that these numbers are a fraction of what will actually be withheld from your paycheck to pay for Medicare for all.
My intent with this blog is not to discredit the notion of Medicare for all as it is a very noble thought. My intent is merely to enlighten those who believe that Medicare for all means free health care for all. I think it's important that we, as citizens and a nation, gather all of the facts and calculate all of the numbers before we proclaim Medicare for all as the law of the land. Do you agree?
One more thing...
for those who call Social Security an entitlement - 6.4% of your gross income is withheld from each of your paychecks for Social Security. Your employer also pays 6.4% of your gross income for your Social Security. It's your and your employer's money funding your Social Security benefits! Social Security is not an entitlement; it's your money.
What's New?
Time, energy, and working hands are impacting the number of baskets that I can produce this year. I've made a dent in the number that will be needed, but there is so much more to do! Here are a few new ones for you to enjoy. If you had to choose one as your favorite, which would it be?
Upcoming Events
Our first event will be July 13 & 14 at the Shaker Heritage Society. More details can be found in the Upcoming Events section of this blog.
Until Next Time...
Diane
