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Social Security Cost of Living

Is anyone advocating a cost of living increase for seniors. I here all of this talk about people not being able to live on a miimun wage of less than $15.00 per hour. The average senior on social security receives about $7.00 per hour based on a 40 hour week by comparison. I haven't heard of anyone standing up for people whose primary source of income is social security. We worked hard paid into the social security fund, and the government stole the money to fund other programs. Our cost of living goes up every year, and yet no cola increase. Help!

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@rg9672 wrote:

So much for the biggest raise in 6 years. They took all they needed to raise the premium from $109 to $134 and gave me the rest. Less than half is what I was left with.


$ 134 per month is your share of paying for the 25% of Medicare PART B cost.

You have been protected from the cost increase for the last couple of years because of the hold harmless part of the Social Security law which says that your SS benefit cannot be any lower than it was in the previous year.  Thus if the COLA isn't large enough, the Part B premium cannot go up any further that what the COLA calculates out to be.

 

Many people have been paying higher than $ 109 per month for Part B for several years, in fact many people began paying $ 134 per month for'2017.  if the COLA had been greater for 2017, you would have paid more maybe even the calculated 2017 rate of $ 134 dependent on the COLA amount.  Remember in 2017, the COLA was only .3% (.003).

 

If Medicare B cost are held down for 2019 and the COLA is decent, you may see a rise in you SS benefit.

 

 

It's Always Something . . . . Roseanna Roseannadanna
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If you worked in your life time you payed Medicare premiums, from every pay check you ever got, long before you were ready to sign up for Medicare, that 75% you say is being payed by tax payers, I payed that in, a long time ago, at least for the last 51 years.........and am still paying premiums today.....

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@bruceb158421 wrote:

If you worked in your life time you payed Medicare premiums, from every pay check you ever got, long before you were ready to sign up for Medicare, that 75% you say is being payed by tax payers, I payed that in, a long time ago, at least for the last 51 years.........and am still paying premiums today.....


The Medicare payroll taxes which you paid while you were working ONLY paid for Medicare Part A - called HI or hospital / inpatient care - if you worked long enough and paid your payroll taxes, matched by your employer, then you get Medicare Part A premium free.

 

Some citizens can buy into Part A at a cost of $ 422 PER MONTH if they don't have access as a worker or spouse of a worker.

 

Medicare Part B or Doctor/ outpatient coverage ( SMI ) is the part of Medicare where you pay monthly premiums now.  That's the coverage where the monthly premium paid by beneficiaries represents 25% of the total cost of the MEDICARE PART B premium and the taxpayers are picking up the rest (75%)

Be thankful, the premium split use to be 50/50 when it was 1st started.

 

Then there is Part D or the prescription drug coverage and it works similar to Part B.  

 

Insurance is ALL about sharing the risk and the cost - there really is NO " I " in insurance - there is only "WE".

 

The last figures which I remember is that Medicare pay about $7000 per beneficiary in cost per year and there are about 60 million beneficiaries and still growing to the tune of 10,000 PER DAY and into the future (baby boomers)  That does not mean that everybody in Medicare uses that much.  Like you said, you use zero, I also use very little but somebody else might use several hundred thousand.  All those joint replacements, sex change operations, heart stents, stroke rehab, cataract removal and lense replacements, heart attacks, cancer treatments, AMD treatment . . . . And on and on and on- 

ALL have to get paid for by "WE"

 

How in the world did you think this worked?

If we had just set up an account for everybody, where their paid in amount would go, with everything you have paid in into all the various parts, you might have enough to mend a broken arm, if it wasn't a compound fracture, at today's cost.

 

Have you ever read the annual book sent to you by Medicare called

"Medicare and You"?

 

I like to know about things especially where my money goes and how it is spent - Don't You?

 

 

 

It's Always Something . . . . Roseanna Roseannadanna
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I am doing my part, for keeping Medicare costs down , I have never used mine for anything while still paying $7,000 in Medicare premiums and $11,500 in suplement premiums for a total of $18,500 in the last 5 years....do you know how much $18,500 could help me right now, to live on.....?

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@bruceb158421 wrote:

I am doing my part, for keeping Medicare costs down , I have never used mine for anything while still paying $7,000 in Medicare premiums and $11,500 in suplement premiums for a total of $18,500 in the last 5 years....do you know how much $18,500 could help me right now, to live on.....?


I am sure that everybody here congratulates you for being healthy.  A Hope for further good health.

 

However, it seems that you are planning for the worse because you are paying for a Medigap plan (Medicare Supplemental ).  You do know that Medicare Supplemental insurance is ONLY gap insurance because it only covers the 20% of the Medicare approved amount which Medicare does not pay, some cover the A &B deductibles and some coverage for rehab depending upon the plan.

 

Medicare does NOT require you to have supplemental coverage, it is a personal decision that you made so that isn't even part of the Medicare discussion here.

 

Many beneficiaries don't have a supplemental plan, many are dual eligible (Medicare/Medciad) and don't need it, many choose to have a Medicare Advantage plan where they have a small monthly premium to the insurer as a way to get their  Medicare benefits, pay their Part B premiums as required just like you  and they know their yearly out of pocket even in the worse case scenario - Original Medicare has no limit on annual or lifetime out of pocket.

 

I believe you said that you don't have a Medicare Prescription Drug plan - I Find that odd.  What happens if you need some type of medication, perhaps expenses medication.  Since you haven't picked a prescription drug plan under Medicare, if you ever decide to get one, you will be assessed a late penalty sign up - an amount on top of your premium for the drug plan that goes on forever.

 

Everybody should remember that insurance - public, private or some combination - is a SHARED COST - you aren't just paying for yourself but others too and they are doing the same for you.

 

It's Always Something . . . . Roseanna Roseannadanna
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While I was care giver for my mother, she had about 15 differant perscriptions every day to take. It seemed like she just kept getting worse, the more drugs they gave her, side effects were killing her.......I don't take any drugs except an aspern ,once in a while and very little cold medicen , when needed, over the counter stuff, I got this suplement for Medicare, because there is no way I could pay for what Medicare does not pay for, out of my SS check......I couldn't afford the part D premium back then and I sure can't afford a jacked up premium now.........I bought this house about 17 years ago, so I would have a home to live in for the rest of my life, sense I bought it, I have spent every night right here........I will not go to the hostpital , over night........but everybody has to have some kind of health insurance these days............................well I have bothered you enough on this subject, sorry I rattled on to much, must be the holidays and I have,t had anybody to talk to for a couple weeks now..............this is my last post...thank you........

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In your Decembr AARP Bulletin you mistated that those collecting Social Security would pay Part B Medicare $109. per month in 2018. Correction - The cost for Medicare Part B will be $134 per month in 2018

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@My2bunnies  Take a look at the Medicare web site.

 

https://www.medicare.gov/your-medicare-costs/costs-at-a-glance/costs-at-glance.html

 

This is copied from the Medicare web site.

(The standard Part B premium amount is $134 (or higher depending on your income) ($134 in 2018). However, some people who get Social Security benefits will pay less than this amount ($109 on average in 2017; $130 on average in 2018).

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Of course you chose Britain to compare national healthcare systems. It is one of the worst in the world because of under funding. And of course the taxation. The USA just hides it's taxes better with backdoor taxes and hyper-inflation. You don't mention Finland, Denmark, Sweden, Germany, Australia. And you don't mention the numerous benefits these countries have. You can't spend trillions on illegal wars and country welfare and have benefits for US Citizens. What is AARP doing specifically to get us a reasonable COLA? And we have the fiat money tree that could abracadabra walla fund the best healthcare system in the world instead of propping up Wall Street.

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@davidw994077 wrote:

Of course you chose Britain to compare national healthcare systems. It is one of the worst in the world because of under funding. And of course the taxation. The USA just hides it's taxes better with backdoor taxes and hyper-inflation. You don't mention Finland, Denmark, Sweden, Germany, Australia. And you don't mention the numerous benefits these countries have. 


No matter what COLA formula is used or how it is calculated, there will be people who need more.  One of the biggest detriments to SS benefits is that when wages increase faster than inflation, the COLA will lag behind by at least a year.  For 2017, the wage index jumped 7.3% and SS COLA was 0.3% because the previous year wage index jump was 0% and didn't affect inflation.  Since 2017 was a 7.3% wage index jump, it put pressure on inflation and SS COLA is 2%.  Again lagging.  The wage index jump for 2018 is less than 1% so there is no telling what the 2019 COLA will look like.

 

For healthcare, I was just trying to make the point that those kind of benefits come with high taxes.  I chose the UK because I had the info from their tax website.

Yes, countries like the Scandinavian ones, do provide a lot of benefits, like free college education, family time off, etc.  Entrance to the colleges is limited and highly competetive for those spots.  If they don't get in, they look to go elsewhere, like the US.

 

As far as taxes, go.  Norway has the lowest marginal tax rate of the Scandinavian countries.  The Norway minimum income tax is 35.8% plus the VAT taxes.

 

7.8% National insurance on gross

28% flat income tax with very few exemptions

 

Plus surtaxes on top of that:

Additional 9%  on income between $76K to $124K

Additional 12% on everything above 124K (so income at this level is taxed 3 times, 7.8% + 28% + 12% = 47.8%)) 

and a 25% VAT tax.

 

I don't think Americans would ever be comfortable taxing the lowest income people at levels like 37.8% and having to pay $125 for goods and services they pay $100 plus sales tax for now.

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Whar cost of living raise, it went to medicare.

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I haven't had a raise in my SS for many years now, I have been sighned up for Medicare for five years now and have never used it..every time they say SS is getting a cost of living raise, it goes directly to Medicare, I don't get the raise ...over 30% of my income goes to health insurance now, just Medicare and a suplament to cover what they don't cover, taxes are going up, and every thing else I need to live is going up, but we get no cost of living raise like we were promised..........There is no cost of living raise anymore....................

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@bruceb158421 wrote:

I haven't had a raise in my SS for many years now, I have been sighned up for Medicare for five years now and have never used it..every time they say SS is getting a cost of living raise, it goes directly to Medicare, I don't get the raise ...over 30% of my income goes to health insurance now, just Medicare and a suplament to cover what they don't cover, taxes are going up, and every thing else I need to live is going up, but we get no cost of living raise like we were promised..........There is no cost of living raise anymore....................


bruceb158421

 

I have explained numerous times how Medicare Part B fits into the whole COLA thing including the hold harmless clause of the Social Security Act so I won't go through that again. 

 

Instead I would like to offer you some direct help if you are eligible.

If as you say . . . . "over 30% of my income goes to health insurance now, just Medicare and a suplament to cover what they don't cover,"

You might be able to get help in your state for paying your Part B premiums and maybe do away with your supplemental all together if you qualify.

 

If you have limited income and few resources, your state may pay your Medicare premiums and, in some cases, other out-of-pocket medical expenses, such as deductibles and coinsurance.

 

ONLY your state can decide whether you qualify for help under this program -

For more information, contact your state's Medicaid, social services or health or human services.

Visit   Medicare.gov/contacts - Medicare Savings Program resources, or call 1 800 Medicare (TTY:  1 877 486 2048) to get to your state's direct number.

 

You can also read more about Medicare's State supplied help programs at this Medicare website - they are call The Medicare Savings Programs and each is a little different in scope and help.

Medicare.gov - Medicare Savings Programs

 

It is good to familiarize yourself with programs offered by Medicare and Medicaid based on low income - that's the reason they are there - but they aren't mind readers, you have to determine if you might qualify and then take action.

 

Hope this might offer you some help with your Medicare cost.

 

It's Always Something . . . . Roseanna Roseannadanna
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The COLA is not based solely on senior cost of living, but manipulated by using everyone from 21 to 90 and then "adjusting costs" of food, gas, healthcare. Seniors have not had a decent COLA adjustment since the 80's. The FED has created hyper-inflation to save Wall Street banks that own the FED and the cost of everything has suffered. On meager Social Security income it is impossible to survive. And of course out of control healthcare. Every other country in the world has national healthcare no cost. This gives seniors there more income in retirement. If people knew the benefits that people in other countries get we would have revolution tomorrow. Congress gets automatic COLA increases every year and has their own healthcare system. Pentagon "loses" 7 Trillion and it's oops sorry about that. Sooo, what are lobbiests from AARP doing to change the COLA system?

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i think the us is doing a bad job sence other peolle that were in office
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@davidw994077 wrote:

.... And of course out of control healthcare. Every other country in the world has national healthcare no cost. .....Congress gets automatic COLA increases every year and has their own healthcare system.


Healthcare in those other nations is not "free", per se.  For the UK tax system, based on all the information I've found:

 

There are very few tax deductions(most have none), and no single, married or head of household categories. There is only a personal income tax that doesn't care if you support only yourself or a family. If you are married, you pay your personal tax and she pays hers based on your individual incomes.

 

Income tax is 20% of income from $14,801 to $57,900,

40% of income from $57,901 to $193,000,

45% of all income over $193,001 and above.

 

The personal exemption ($14,800) is reduced $1.25 for each $2.50 over $128,700 until there is no personal exemption for incomes over $144,500.

 

On top of the income tax is the National Insurance Tax (SS and National Health System), which is an additional 12% for everyone with incomes over $10,500.

 

Then add the UK VAT tax rate of 20% for most goods and services.

 

And to supplement all of this they have personal health insurance.  Most hospitals contract 25% of their business to the NHS.  The other 75% is private insurance.  NHS doctor salaries are set by the government.  Administrators get the highest pay at under $200K per year.  Top doctors receive about $150K and new interns receive about $30K.  The NHS pays for doctor training and require a mandatory service time with the NHS.

 

Congress doesn't get a COLA but has voted down their Average Wage Index referenced pay increase every year since January 2009.  Also, I haven't been able to nail this one down but Congress was on the ACA.  I think Congress has gone back to having to pay for the same health insurance that all federal employees purchase.  I recall hearing about it in the news but couldn't find the change back to the federal health benefit options.

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GailL1:

A few minor corrections to one of your comments:

 

1.  All deposits to the Trust Fund immediately purchase the special Treaury bonds.  Monthly payments are made by redeeming the maturing bonds.  The Trust purchases and redeems about $1 Trillion in bonds each year.

 

2.  The Trust Fund hasn't had a negative year since 1981.  Here's a nice simple chart from SSA that shows cash flow through the Trust Fund since 1957.  Just a few years after 1981, the Fund almost went broke until the SS Act of 1983 started taxing new hire federal workers and retiree SS benefits.

https://www.ssa.gov/oact/STATS/table4a3.html

 

3.  The Trust Fund doesn't make the National Debt look lower.  The Trust Fund, at $2.8 Trillion, is the largest single line item in the $20 Trillion National Debt.  The government owes all that money back to the Trust but for now the interest payments are keeping the Trust afloat.  Of the debt, about $5.6 Trillion is money the government owes itself in the form of federal pension funds, military pensions, NTHSA funds, the SS Trust Fund, and other government departments.  Corporations and individuals own the majority in the form of Treasury Notes/Bonds and good ole Savings Bonds.  Foreign countries own about $6.6 Trillion with China at $1.25T and Japan at $1.1T.  The SS Trust is more than those 2 combined.  SS is coming close to making annual benefit payments equal to the China owned debt.

 

What I think you meant to refer to was that SS income and outflow is added to the budget to make it look bigger and other large programs appear to be less of the budget.  Adding in SS and Medicare income taxes makes the tax income look like $3.5 Trillion when the actual amount of discretionary tax income is closer to $2 Trillion.  Then on the expenditure side they get to show social programs are 42% of the budget. and DoD is 21%.  If Social programs weren't included, the DoD portion would be closer to 30%.  In the words of Benjamin Disraeli, and made famous by Mark Twain, "There are three kinds of lies: lies, damned lies, and statistics."

 

Otherwise, I think you hit all the right points in your posts.  If you check the chart for 2016, you'll see that payroll taxes were $75 Billion short of benefit payments.  That shortfall was made up by the bond interest ($88 Billion) so a little of that left over and the income taxes on SS benefits is the surplus that went to the Trust.  I'm waiting to see if the 2017 economy is going to reverse the trend of payroll taxes not covering benefit payments.

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As a female single senior who has worked 40+ years as an RN, I agree!! I retired this year at 66 but will need to work part time for who knows how long to maintain a standard of living of what??? $30,000 a year? And I still have a mortage. 

Spoiler
 
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@mahubbard wrote:

As a female single senior who has worked 40+ years as an RN, I agree!! I retired this year at 66 but will need to work part time for who knows how long to maintain a standard of living of what??? $30,000 a year? And I still have a mortage. 

Spoiler
 

Hope you are pretty close to having that mortgage paid off.

 

Retirement is not just stopping doing a job you have done for 30 - 40 years.

It is about making life changes so that you can live a lower pace out of the rat race.  Social Security was never meant to be a total retirement package - it just works with the rest of your plan.

It's Always Something . . . . Roseanna Roseannadanna
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I agree. our government should be held accountable to put every dollar back into SS they have stolen. It was not their money to use in the first place
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@vgl373 wrote:
I agree. our government should be held accountable to put every dollar back into SS they have stolen. It was not their money to use in the first place

Actually, it has always been their money to use as it was written into FDR's original Social Security Act of 1935, Title II, Old Age Reserve Account, Section 201(b). "It shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States."

 

The Treasury is a bank and the investment transfers the money to the general fund as a loan.  They do the same thing with the SS deposits that your bank does.  The difference is the government uses it to provide services and pays back the "loan" using future general income tax receipts.  The bank pays it back from loan proceeds on cars, homes, businesses and market investments.

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@vonl983768 wrote:
I agree. our government should be held accountable to put every dollar back into SS they have stolen. It was not their money to use in the first place

The money never went anywhere in numbers - the Trust Fund still shows a reserve of about $2.8 Trillion.  But since the baby boomer generation is hitting the Social Security rolls claiming their benefit and since the number of workers paying into the system has diminished for several reasons, the Trust Fund continues to go down.

 

Our nation is in debt and they just use the Trust Fund numbers to show we are less in debt. 

 

By 2034, the SS Trust Fund Trustees tell us that the Trust Fund will become insolvent.  That does not mean that it is broke - it means that since SS is pretty much a pay as you go program, that at that time, without some type of prior reform, ALL benefits will be cut about 23% so you will only get about 77% of your benefit.

 

Basically, SS works like this -

payroll taxes are collected and benefits are paid

other revenues also flow into SS - the taxes some people pay on their benefit goes back into SS.

When we collect more than what we pay out, special treasuries are purchased and this build the reserve.  So SS also gets the interest on these securities.

 

When benefits being paid out get bigger than the revenues coming in,some of those treasuries are sold to make up the short fall.

 

This last part is happening more and more because of the number of beneficiaries in comparison to the payroll taxes coming in - 

 

There are 10,000 baby boomers retiring EVERYDAY and this will continue on for many more years.

 

Getting any sort of COLA just adds to the financial problem of the Trust Fund.

But we won't see much of this 2% COLA since Medicare Part B premiums will take up much of this.  The Part B premiums for 2018 haven't officially been announced but the numbers folks are betting on Part B premiums being set at $134 per month for most everybody.  Higher income seniors (over $ 85,000 per year - single) pay more. 

 

 

It's Always Something . . . . Roseanna Roseannadanna
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@easyed598 wrote:

Compare Medicare Supplement Plans With Medicare Plans Online


That is a far cry from what you said earlier -

You posted:

 My insurance agent told me that in 2020 Doctor`s office calls won`t be covered by Medicare. 

 

The reason that Medigap Plans F and C are going away is because those are the only plans left which have 1st dollar coverage and we know it saves money when seniors have at least some skin in the game.

 

I'd be leery of an insurance salesman or saleswoman who is trying to get you to change plans right now because much of your pricing depends on how the plan you have bases their premium - might be good to know before you makena decision.  Also good to know is if there is repercussions to you if you do change since you may not have guaranteed issue rights.

 

Medicare.gov - Cost of Medigap Policies

 

Medicare.gov - Guaranteed Issue Rights

 

 

It's Always Something . . . . Roseanna Roseannadanna
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That is a far cry from what you said earlier -

Gail wrote -You posted:

 My insurance agent told me that in 2020 Doctor`s office calls won`t be covered by Medicare. 

 

The reason that Medigap Plans F and C are going away is because those are the only plans left which have 1st dollar coverage and we know it saves money when seniors have at least some skin in the game.

 

I'd be leery of an insurance salesman or saleswoman who is trying to get you to change plans right now because much of your pricing depends on how the plan you have bases their premium - might be good to know before you makena decision.  Also good to know is if there is repercussions to you if you do change since you may not have guaranteed issue rights.----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------That is what the agent told me but being skeptical I checked and found nothing is set in stone yet as we are still living with Obamcare. Prices agent quote was $40/ month less than what I pay now for plan F and he was pushing plan G which was $55 less than I am paying . I got a quote from AARP and it was $50/month more than I `m paying now so decided to stick with my present plan.

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We hear all the time that the Social Security  money will run out by 2034.  Workers and employers are paying into Social Security every week.  You NEVER hear about the Welfare fund running out.  Who the devil is paying into that fund???  Must be the people that have to work for their money and pay taxes.  One can tell who is telling the Federal Government what to do. 

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I agree Social Security is taken out of every paycheck & I assume since people working now make Wayyy more money then I did must be paying in more so I want to know also where is that money going? I worked my whole life to now find I have to live with my 89 year Old Mother because I don't Qualify for a Apt or even a mobile Home because I don't make 3 times the monthly Rent, Dear God I ran Million dollar Company's as a Regional Mgr & everyone of those company's went bankrupt so of course I don't have a 401 k I then as a Single Woman opened a small business Wow what I thought was the American Dream in Mall's then the Mall raised all the Rent put me out because I wasn't big Corporate store's. The Dream was lost along time ago & now after all this when my Mom dies I will be homeless & I love our Country my Dad died for the flag & I respect our Veterans, but something needs to happen to help Seniors so we all don't end up homeless because our money is going to illegals that never paid into the system. Sorry for my Rant but I didn't work my Ass off not have Children to end up Homeless.

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IM267 wrote -  I agree Social Security is taken out of every paycheck & I assume since people working now make Wayyy more money then I did must be paying in more so I want to know also where is that money going?   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------It all went away when LBJ integrated SS funds into the general fund, which is now 20 trillion in debt.

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@Andyrew wrote:

We hear all the time that the Social Security  money will run out by 2034.  Workers and employers are paying into Social Security every week.  You NEVER hear about the Welfare fund running out.  Who the devil is paying into that fund???  Must be the people that have to work for their money and pay taxes.  One can tell who is telling the Federal Government what to do. 


Today there are not enough workers supporting beneficiaries.

See this chart from the Social Security

Social Security History - Workers to Beneficiaries ratio

 

Back in 1950, we had 16.5  Workers for every beneficiary.

In 1970, there were 3.7 workers for every beneficiary

in 2013 we only had 2.8 workers for every beneficiary.

Today, we are getting close to the 2.5 ratio to workers: beneficiaries 

And we have 10,000 baby boomer generation seniors retiring everyday, ready to begin their SS benefit.

 

Social Security is a pretty much pay as you go system and that is not working in present form.

 

The money will NOT run out in 2034 - that is the estimated time of insolvency and what that means is, the surplus will be depleted and we will be paying benefits solely on revenues coming into the program by payroll taxes and taxes paid on benefits and according to the Social Security law, benefits will be REDUCED for every beneficiary to cover the shortfall - this has been estimated to be about a 23% reduction where people would only be getting about 77% of the current benefit.  If it does not get fixed by our legislators, sooner rather than later, this change (reduction) in benefits will be automatic.

 

You do realize that 75% of what Medicare beneficiaries spend on Part B comes out of the General Fund - premiums only cover 25% of the cost.  Would you consider Part B Medicare to be Welfare?  Comes from the same place where Medicaid is covered, same place other "welfare" programs come from - the General Fund.

 

Would you pay more in Part B premiums to make this Medicare Part B benefit more self- sufficient, I.e. It would be less Welfare!!!!!!

 

Payroll taxes in your working years only cover Medicare Part A, not Part B or Part D.

It's Always Something . . . . Roseanna Roseannadanna
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My insurance agent told me that in 2020 Doctor`s office calls won`t be covered by Medicare. This will save Medicare billions in medical cost. Those who turned 65 before will grandfathered in -but those younger will be affected..  Checked a different source and found it is not set in stone yet but could be a way to help save medicare or at least put off bankruptcy for another decade.

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