Medicare: Program, Financing, and FICA Trust Fund
Medicare Part A – Covers hospital benefits, and is financed from FICA payroll taxes collected from employers (1.45%) and employees (1.45%). About 99% of Medicare beneficiaries do not pay a Medicare Part-A premium because they have earned least 40 quarters of Medicare covered employment. Those individuals with 30 to 39 quarters can buy into Medicare Part A at a monthly rate of $248 to $450.
The FICA is a solid non-profit organization, with a 76-year history of efficiently administering both the Social Security and Medicare Trust Funds! All FICA Medicare collections go into a trust fund, which is used to pay doctors, hospitals and private insurance companies when Medicare patients use their Medicare medical benefits. The FICA administers both Social Security and Medicare. Because of this “dual role”, FICA administrative costs are about 30% less than those of private health insurance companies.
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Republicans falsely claim that Medicare already consumes about (12.5%) of federal spending, and “costs” are set to explode as the baby boomers begin retiring in 2011! Again, this is hogwash! Republicans only mention the spending side! They conveniently omit monthly payroll tax collections and existing Medicare FICA trust fund surpluses. The Medicare FICA trust fund has taken in more than it paid out for years, and currently has a “surplus” that will last until 2024!
- How much has been collected by FICA Medicare payroll taxes since 1965?
- How much has been collected from retirees Social Security checks since 1965?
- How much will be collected from the FICA Medicare payroll taxes in the future?
- How much will be collected from future retirees Social Security checks?
- How much has been paid out of the FICA trust fund?
- How much additional revenue is needed to balance Medicare spending, Medicare trust fund surpluses, future FICA payroll tax revenues, and retirees withholdings?