I understand that Medicare is not an investment program, but it is money that is taken from you that you “could” have invested had the government not taken it.
The fact that most people wouldn’t have the self control to actually invest the money if they were allowed to keep it shouldn’t be the deciding factor. By that reasoning, the government should just take all our money, since most people cant be trusted to spend it all correctly.
The point I was trying to make was to “pretend” that the funds we give to the government for Medicare are actually set aside in a long term CD that pays 5% interest by the government on our behalf, and that when needed we can draw funds from that account to pay for a certain amount of our medical bills.
*** I know that is not at all what the program actually is***
But, the point I was trying to make was that when you look at it that way the amount that we get back is more comparable to what we put in.
It was never portrayed that way by anyone. It is medical insurance.
But, the point I was trying to make was that when you look at it that way the amount that we get back is more comparable to what we put in.
No, it is not comparable. Today's seniors get back far more than they paid into the system. It is the reason why the system is bankrupting the country. I know many Freepers like to use this argument to rationalize that they actually have paid for or deserve these benefits. The truth is that our children and grandchildren are footing the bill. We are borrowing the money to pay the benefits for today's seniors--including me.
The changes in this new Medicare doc fix will add to the deficit and raise taxes on "wealthy" Americans. Medicare Part B is already means tested with five tiers of premiums based on income. This new bill increases the premiums on the wealthy. I see Medicare and SS heading towards means tested systems as a way to keep them solvent and to increase taxes on the so-called rich who will continue to see the definition of rich being changed. Eventually the welfare state is going to run out of other people's money.