Aug 19, 2009 in Health Care
This typical person paid around $64,971 in Medicare payroll taxes over his lifetime. Likewise, after netting out Medicare premiums, he’ll receive around $173,886 in lifetime Medicare benefits. The net? He can expect to receive around $108,915 more in benefits than he paid in taxes over his lifetime.
Please, somebody tell me I’m crazy…did this guy just forget about inflation? That first dollar he paid was worth much more than the first dollar he received. There will probably still be a disparity, but I’d like to see what the numbers are after each year’s contributions are adjusted for inflation.
Regardless, somebody needs to remember that Medicare and the concept of a public option exist because some people simply aren’t profitable to keep healthy. That’s why private insurers won’t cover them.