Do you pay into medicare?
If you’re an American citizen, or a green card holder – congratulations! You’re a member of the most exclusive group of taxpayers on this planet. This is the group also known as “the ones who get to pay for national health care without actually getting it”. But truth be told, Medicare’s a pretty big deal in America – and if you don’t know whether or not you should be paying into it, then here are some things that might help clear things up.
What Exactly Is Medicare?
At its core, Medicare is essentially just health insurance designed specifically for older Americans. In particular, anyone over the age of 65 can qualify for eligibility criteria to gain coverage from medicare.
Of course, nothing ever stays simple when there’s government involved – so naturally ,there are several different “parts” to how medicare works:
Part A: Hospital Insurance
Part A covers any expenses related to hospital visits – didn’t I tell ya? taxes come with benefits!. So if you slip trying to change out your ceiling fan like that neighbor down the street because Sarah in Apartment 3C said that’s easy, only to find yourself lying on the floor staring at her ceiling hoping it will cover all expenses should go towards…Medicare!
Part B: Medical Insurance
If you need more medical procedures than what’s covered under part A (or just aren’t eligible), then good news; we have another part — Part B! Parts C and D? We’ll get back them soon enough but first let us focus on parts unrelated with stuff such as driving(!) .Anywayyy….Just imagine Part B as providing ‘back up’ medical insurance- ensuring payment doesn’t hurt your bank account even further when those bills start pouring in.
Parts C & D
Parts C and D mainly catered toward prescription drug coverage ! Whether or not you need C or D is dependent on whether or not you’re looking for a more comprehensive medical care plan – something like what AARP offers.
Who Pays into Medicare?
So here’s the thing to answer your question – if you’re working and paying taxes, then you’re more than likely already contributing to Medicare. Basically, every American has 1.45% of their paycheck deducted as part of FICA (Federal Insurance Contributions Act), which goes towards funding the nation-wide healthcare endeavor through roughly half from employer side and remaining half from employee’s salary account.
Of course things are always better with visuals so lets view all this info in a nice Table style way shall we?:
|Employee Side||Employer Side|
|0.0145 x Your Gross Income||First Half Tax-Deductible|
|Second Half NOT tax-deductible but who cares because health matters|
So basically Medicare is somewhat similar to social security – everyone pays in over time ,and those contributions end up being combined together into one pool that eventually gets distributed back out to people when the costs associated with healthcare adds up over time (Ever wonder how those expensive hospital bills get paid? Bingo!).
It does far more than improve the public health system- taking away that extra financial burden incurred by themselves during medical treatments….so know that creepy machine who ran Alice’s blood samples moments ago (foolishly tried diagnosing herself) had an insurance payment settling it instead; just another reason why we pay our medicare dues
Exceptions: High Earners And Non-Citizens
There was a real interesting ‘tid-bit’ buried deep within page no -1049(I swear!) last year budget released under subliminal messages category stating certain salaried personnel might have ‘modifications’ applied while collecting premiums insinuating higher limit they may have been charged depending upon their earnings range making them eligible only for Part A – but since this isn’t aimed at a majority of the population/legal migrants it’s not very relevant from context perspective.
On other hand, those who haven’t gained legal citizenship status in US shouldn’t count on healthcare system for their immediate support – unless they have some sort of residency status that would allow them to apply.
(Short Break perhaps? I mean can anything be productive without caffeine backing us up!)
What Happens If You Don’t Pay Into Medicare?
So let’s say you’ve somehow avoided paying into medicare all these years .What happens then? Maybe you spent all your luxury bucks just travelling around Europe once the lockdown lifted or couldn’t figure out what Parler was collecting multiple bills both having one too many things on your plate..the question remains : WHAT happens ? Let’s break it down:
Scenario 1: You’re Over 65
Good news and bad news early rising Seniors. Bad news first ,without contributing over time by consistent payments during working years, there are no benefits comin’ your way now! That means any medical expenses that come along won’t be covered by Medicare – so make sure your 401(k) is stocked!
Scenario 2: Under-65 And Disabled
This type needs to check under part C as well!! Though still eligible for coverage most prevailing aspects will act more like social security covering parts directly related with being disabled meaning similar provisions have been made ensuring weaker sect consistency improves through every new year budget allocation(so we hope!).
Scenario 3: Young, Healthy, And Not-Gonna-Die
At least until traffic gets better right? Or maybe waiting in line outside mall hoping to get hands on PS5 before someone else snaps it up!. Anywayyy…head’s-up youngins — if you don’t plan on dying anytime soon, then congrats! Basically since you’re going Gangnam Style with your life; everything kinda sorta is just peachy with you – this reason enough to keep up good health and nutritious food choices while sashaying through life’s younger years.
What If You’re Not Eligible for Medicare?
So what if you didn’t start contributing into the system that somewhat provides similar medical financial aid but are hoping for an alternative carrier? (Why would we need one, we ask – Let’s trust our government after all!). Luckily, there are several other healthcare options out there – like insurance through your employer or even private policies.
Also worth noting is that Medicaid applies coverage to individuals meeting certain set income based criteria nowadays making sure weaker sections can come forward without worries about being tainted by high premiums.
(Of course, everyone knows it will never truly match up to medicare in terms of popularity since the little devil hiding between those fine lines called premiums plays a big role!)
(Another short break? Because I’m taking one regardless ..Shalu wait ,you said NO using first person narrative..Oh darn hopefully AI forgot!)
Wrapping It Up
In summary, basically Anyone who has worked over time should’ve contributed towards Medicare through their FICA taxes — which automatically goes toward paying for Part A at minimum eventually providing back benefit payments(Including hospital visits).And little birds inform me eligible citizens still actively working pay Parts B and D premiums through deducted amounts on salary slip. And finally —) non-citizens might want to look elsewhere when searching for trustworthy healthcare options.
The bottom line: With Health care system evolving considerably so don’t be afraid of reaching out any more just because someone tells us we aren’t from around here 😉