📋 How Does Marriage Affect Medicare? (AARP Article)

[SpringIsHereVA]

FROM THE ARTICLE - SEE ARTICLE FOR MORE!

By Kimberly Lankford, AARP. Published June 14, 2024.

Medicare has never been a family plan, in contrast to employer-sponsored health insurance.

Each spouse pays separate Medicare premiums, and married couples don’t get a discount. If both spouses are enrolled in Medicare Part B, they each pay $174.70 a month in 2024; more for couples with high incomes.

https://www.aarp.org/health/medicare-qa-tool/does-marriage-affect-medicare.html

[Tonster521 · Accepted solution]

@GailL1 I understand the concept of contributing toward the cost of Medicare Part A. Folks either contribute via payroll deduction (1.45% of Earnings) or self pay, if not connected to a "structured" job for the appropriate quarters of work. Although I was unable to find any statistical data or formula that establishes the appropriate contribution percentage for Medicare Part A, the current percentage (1.45%) has been in place over 40 years. It has not been adjusted for medical inflation which as you know far exceeds general inflation. The SHRM projected medical costs increasing by over 8% for 2024. At any rate, I believe the SS actuary develops a census of folks (married, single, and disabled children) and determines the percent needed based on Earnings. So, the folks that are not directly connected to structured jobs/employment (i.e., homemakers, disabled children, etc.) but are connected to an eligible worker (i.e., spouse, child, etc.) are included in that Medicare Part A tax (currently 1.45%).

Medicare is a federal insurance program and is not the same as private insurance. IMO, to charge a homemaker or disabled child not on a payroll or self employed, would be charging them twice. Although one can debate that Medicare Advantage may be considered private insurance, MA is subsidized by the Federal Government through a complex formula for providing such coverage instead if traditional Medicare. Many MA Plans are offered with no or very minimal contributions whereas Supplemental Medicare Plans (including Part D) require a substantial contribution. It isn't that MA Plans have some "magic" that traditional Medicare does not. It is simply the Federal Government pays MA Plans a subsidy. BTW, the IRS and DOL recognize homemaker as a job. If employed by someone other than your family, it can provide decent wages/salary. I don't believe the IRS will accept paying your spouse to be a homemaker. Go figure. It generally is the same type of work.

[SpringIsHereVA]

Thanks for the feedback @Tonster521 , SO MANY women give up their career to raise children NOT realizing this will affect their Retirement Plans!!!

I have been working from age 12 (lol, a pretend job helping in a department store) and SO GLAD I kept working until age 62 WHEN I RETIRED in 2020 compliments of NOT wanting to deal with COVID in the Workplace.  💃💃💃

I have 1 child.

Nicole 👵

[Tonster521 · Accepted solution]

@SpringIsHereVA  Nicole, thanks for your positive reply. I received the standard AARP email notification, but nothing is displayed in this Health (Medicare & Insurance) Forum. It could be my software which is old or it may an AARP's issue/problem. Anyway, your question regarding the lady  that was a stay home Mom taking care of and raising children (essentially a homemaker) is important. In many cases, such homemaker misses out on years of "standard" employment and Earnings that are critical to developing their SS Benefit. As you know, as a Single person, one needs 40 Quarters of Earnings which are FICA taxed to qualify for Medicare Part A with no additional contribution. If one is short 40 Quarters at age 65, they need to continue to work to attain at least 40 Quarters or contribute (pay an amount) to qualify for Medicare Part A. Also important, their SS Benefit monthly amount which is based on 35 years of Earnings (420 months or 140 Quarters) will be significantly reduced. So, I am not sure if your question is asking for my thoughts regarding Medicare Part A eligibility, the monthly amount of SS Benefits, or both for folks that miss years of Earnings because they took care of and raised children (i.e., homemaker). Here are my thoughts. First, Congress needs to address these issues especially for the single Moms. There may be provisions pursuant to State/Federal laws that provide child support and/or Qualified Domestic Relations Orders (QDRO) which could be FICA taxed to be included as Earnings for Social Security purposes. Second, Dependent Care IRS Regs./Rules could be amended to include payments to both Single and Married Moms that could be FICA taxed and included as Earnings for Social Security. Of course, the money has to come from someone or somewhere. I think the parties (Mother and Father) should work the financial arrangements voluntarily. If that is not doable, then the Courts need to step in. In certain cases, federal laws such as the Retirement Equity Act of 1984 (REA) need to be amended so that retirement/pension benefits which are accumulating year after year for the working spouse may be reduced currently and paid to the non-working spouse who takes care of and raises the children. Those payments should be included as Earnings for Social Security. The concept is that there may be employee benefits accumulating that may be used to compensate/pay the non-working spouse and use such payments as earnings for Social Security.

[GailL1]

From your link ~

The good news. You can qualify for premium-free Part A based on your spouse’s work record. Most people don’t pay premiums for Medicare Part A because Medicare taxes were deducted from their paychecks for at least 40 quarters of work, the equivalent of 10 years or more.

If you haven’t worked that long but your spouse has, you can qualify for premium-free Part A based on your partner’s record.

_________________

While this is true and always has been - seems to be part of the problem of why the Medicare Trust Fund (Part A ) is having financial concerns.  People who get the benefit of premium free Part A but who have NEVER contributed to the Trust Fund.

Seems to me that people with a spouse that has not earned their Medicare Part A premium free benefit should have to pay something for it just like the ones that are short in quarter hour worked for premium free Part A.

Seems marriage does have a big advantage in this situation especially if one has never worked or has not worked too long.   A savings of $ 278 - $ 505 (at the 2024 rate) per month for the spouse that has never worked or has worked a small amount but not enough to qualify for the premium free Medicare Part A.

Then add in all the disabled adult children who get DAC benefits off one of their parents.  Yep, Part A is free to them too if the parent is/was vested in Medicare Part A.

[Tonster521 · Accepted solution]

@GailL1 I understand the concept of contributing toward the cost of Medicare Part A. Folks either contribute via payroll deduction (1.45% of Earnings) or self pay, if not connected to a "structured" job for the appropriate quarters of work. Although I was unable to find any statistical data or formula that establishes the appropriate contribution percentage for Medicare Part A, the current percentage (1.45%) has been in place over 40 years. It has not been adjusted for medical inflation which as you know far exceeds general inflation. The SHRM projected medical costs increasing by over 8% for 2024. At any rate, I believe the SS actuary develops a census of folks (married, single, and disabled children) and determines the percent needed based on Earnings. So, the folks that are not directly connected to structured jobs/employment (i.e., homemakers, disabled children, etc.) but are connected to an eligible worker (i.e., spouse, child, etc.) are included in that Medicare Part A tax (currently 1.45%).

Medicare is a federal insurance program and is not the same as private insurance. IMO, to charge a homemaker or disabled child not on a payroll or self employed, would be charging them twice. Although one can debate that Medicare Advantage may be considered private insurance, MA is subsidized by the Federal Government through a complex formula for providing such coverage instead if traditional Medicare. Many MA Plans are offered with no or very minimal contributions whereas Supplemental Medicare Plans (including Part D) require a substantial contribution. It isn't that MA Plans have some "magic" that traditional Medicare does not. It is simply the Federal Government pays MA Plans a subsidy. BTW, the IRS and DOL recognize homemaker as a job. If employed by someone other than your family, it can provide decent wages/salary. I don't believe the IRS will accept paying your spouse to be a homemaker. Go figure. It generally is the same type of work.