The bold italics words below take you to two sites which offer misleading statements about payments vs benefits for our Medicaid Program today. Click to see who falls short on facts.
What you pay for Medicare won't cover your costs
Rise of the Center's "Simple Math Explains Why Social Security and Medicare are Leading us Into Bankruptcy"
Lets us look at all the facts: $43,100 or $89,000 annual average salary provide a similar outcome, let us look at the facts for a couple earning an average of $89,000 per year.
A couple earning $89,000 a year are required to make annual payments of $3,250 per year as a tax to secure medicaid benefits when they are of retirement age. A couple paying Medicaid tax of $3,250 a year for 35 years totals to just under $114,000 in contributions.
I project their working life at 35 years before retirement and give them an annual compound interest rate of 5% on the money paid in each year until they retire and want to collect on their Medicaid insurance benefits. After 35 years of payments with the annual compound interest rate of 5% they have a running balance of $308,218.05 in payments and interest earned on their account.
The value would be $480,718.74 if the annual compound interest rate was 7%
At this point the couple starts to draw from their running balance in the Medicaid bank. But remember they continue to earn an annual compound interest from retirement through their death. So the $308,218.05 invested @ 5% annual compound interest for next 20 years during retirement leaves this couple a future value of $817,794.24, fully covering their anticipated Medicaid expenses during their lifetime.
Remember the AP article written by Ricardo Alonso-zaldivar, Associated Press – Thu Dec 30, 11:15 am ET states:
"But they can expect to receive medical services — from prescriptions to hospital care — worth $355,000, or about three times what they put in."
"Consider an average-wage, two-earner couple together earning $89,000 a year. Upon retiring in 2011, they would have paid $114,000 in Medicare payroll taxes during their careers."
Knowledge is power!
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- Elections matter-openly cynical of government business as usual-Supreme Court Justices 5-4 open warfare on my Individual Liberty-Teach as Knowledge is Power!
False prophets pretend not to comprehend the need for any government to employ actuaries.
ReplyDeleteMost actuaries working in the U.S. government are employed by the Social Security Administration, Health Care Financing Administration, Internal Revenue Service, Public Health Service, Department of Defense, Veterans Administration, Railroad Retirement Board, and the U.S. Treasury Department.
Responsibilities in these departments might include supervising the financial operations of insurance and retirement plans which protect federal employees or providing testimony before a Congressional committee on the long-range costs that changes in the Social Security program of Medicare financing would generate.
The congress has failed to properly budget for future expenses of collections received 30 years ago, 20 years ago, 10 years ago, 5 years ago, last year, this year and today for the Social Security Retirement Fund or Medicaid.
Do you think they budget properly for the Health Care Financing Administration which budgets for Congressional Health Insurance?
Be aware of @SolomonMaximus & @riseofthecenter on this matter as they require further education in this subject matter.
Some would have you believe the only solution is to cut benefits promised to "We the People", they lie!
Remember people, the government collects your taxes and floats treasury bills/bonds at what might be called their risk free rate.
ReplyDeleteThis is the minimum rate of return government budget makers (congress) ought to be accruing in each citizens account in order to maintain an appropriate balance between national income and national expense.
Debt ceiling problems exist because politicians have not accounted for all national Expenses with the National income they have deemed aceptable for the past 12 years.