Medical and healthcare costs
On the same note as Social Security, the future of Medicare seems uncertain, as it faces both financial and political changes. Rising healthcare costs with an aging population are straining the system. This is the key area of concern for many policymakers. These are the important things to understand from Medicare’s financial structure:
The Hospital Insurance Trust Fund covers Medicare Part A, which pays for inpatient hospital care, skilled nursing facilities, and partially some home healthcare services. The HI fund is mainly financed by payroll taxes on workers’ earnings and income taxes on Social Security benefits. These funds might face a shortfall in the next few years, with an impact on the availability of benefits. Action is needed in this field.
The Supplemental Medical Insurance, playing for Medicare Part B, such as medical supplies, physician services, or outpatient care, and Part D, about prescription drug coverage. Unlike the HI trust funds, SMI doesn’t present an immediate risk of depletion, being funded through general revenues of the US Treasury. This means it can continue the funds through federal income taxes and government borrowing. The real challenge here resides in the rising costs. The government covers about 75% of Part B and D. Higher-income earners are required to pay an additional surcharge based on their modified adjusted gross income.
Healthcare inflation outpaces overall economic growth and exacerbates the problem. Medicare’s share of federal spending increases year by year, and it shows that by 2098, the costs would rise from the current 3.8% of GDP to 6.2%. It places a heavier burden on taxpayers and could potentially add to the national debt. This trend could jeopardize the program’s long-term viability if no changes are going to be made to how Medicare is funded or structured.
10 Responses
By only paying Americans, and watching benefits closely. Slow down hiring and requested funds from the agency.
Sometimes it seems politicians aren’t very smart. They are very good at raising taxes, and cutting money from programs.
If the wasteful government spending were cut, both social security and medicare would be solvent.
The problem I have is that we paid into social security, but illegal immigrants that are coming in are getting treated better.
We worked hard for many years , and when we retire we are entitled to file for social security. Illegal immigrants have done nothing, but create a big burden on the government, and taxpayers.
Close the border , cut all funding , and benefits for illegal immigrants. There is plenty of money being wasted . Stop all the funding for policies like “The Green New Deal”, and many others’.
It is pretty easy to figure out how to put money back into social security , and medicare. It sure seems like it is easy to take money from it.
The American people are sick and tired of having to pay more taxes, and illegal immigrants being treated better than us.
You said it perfectly Eric!! I started working when I was 16 and I will turn 73 in November.
Prices are higher than ever. Only people who paid into SS & Medicare should be eligible.
You are 100% correct. It isn’t a solvency problem; it’s an inappropriate spending problem. Politicians need to learn how to manage a budget. They also need to be reminded that it’s OUR money, not theirs.
I agree with Eric. I worked all my life, paying into Social security. Quit giving it away to illegals!! I deserve my benefits as well as others who have earned it!
Stop paying as to immigrants that never paid into the system.
Here is how you keep Medicare and Social Security solvent, first remove all of those other programs that don’t pay into Social Security and Medicare. Next require all of our politicians to surrender their political war chests after each election. Politicians raise hundreds of millions of dollars instead of letting them keep the money, make them put the money into into Medicare and Social Security. If they decide to run for office again they can always raise more money.
I agree with Eric Swan, there is no justification as to where WE the american people who through all there lives looked forward to retireing and relaxing once done so. Now because of there unjust ways of paying bills the government has to look for other ways because of the mishandlng of taxes paid in through the hard working people all of there lives and end up getting less because of illegal immigrants coming here and being treated more better than the ones that are funding there scheeming ways. Do not throw out benifits to illegals, shut down the boarder except for those who come here legally, and start to move these vagrants back to there own country who paid for alot of them to come here to ease there own financial burden. Its very simple, over and done with.
Obviously the general public is not being educated on how the system works, believing that benefits are being paid to unqualified people. My opinion is that all the elected officials who now control their own salaries and benefits should be under the same umbrella as those of us who receive social security. There would be a much larger base of contributors. I could be wrong, but I believe their own system pays them more that what we get. Not fair. They already have much greater income than most of us.
all immigrants that comes to America when they begin to work, they should have extra taxes taken out of their wages for lease five years to be put back into Social Security and the reason for this is because they haven’t put anything in, but yet they’re receiving