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youth
Explorer ○○○

Medicare ripoff

Part B and D are both impacting my social security .  Very close to $400 per month.  The amount is based upon Line 7 of 2018  taxes.  Unfortunately, it is based upon income and not upon medical well being as it should be in my opinion.  Very few ways of reducing adjusted gross income...line 7.  

Gabe

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60 Replies
yogibearbull
Valued Contributor

Re: Medicare ripoff

Social Security gross amount doesn't change but the net amount depends on Medicare basic premium plus IRMAA adjustment. IRMAA does kick in quantum steps. IRMAA applies to MAGI that is AGI plus tax-exempt interest.

https://www.medicare.gov/your-medicare-costs/part-b-costs

https://www.ssa.gov/pubs/EN-05-10536.pdf

YBB
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Bentley
Contributor ○

Re: Medicare ripoff


@youth wrote:

Part B and D are both impacting my social security .  Very close to $400 per month.  The amount is based upon Line 7 of 2018  taxes.  Unfortunately, it is based upon income and not upon medical well being as it should be in my opinion.  Gabe


 

 So how do you propose they calculate how much one pays? If you healthy, you pay more or less? If you are sickly, do you pay more or less? Under your reasoning, a sick billionaire would pay an extra $135?

 I pay over $400 extra and feel fortunate that I'm not paying $135.

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Capital
Participant ○○○

Re: Medicare ripoff

How do you define legally and medically "medical well being?"

 

Capital
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CarlosDS
Participant ○

Re: Medicare ripoff

Only 7% of seniors pay IRMAA so you have to feel happy you're in privilege position. Personally, I think that it is fair that those with higher income pays a little bit more on Medicare.

Gary1952
Contributor ○○○

Re: Medicare ripoff

You should be so lucky to pay for a private policy with the same benefits. Then you would really complain.

One way to reduce line 7 is to quit working. Another to stop SS benefits. Since the IRMAA amounts are based on prior 2 years line 7, you can file a form for life-changing events if you stopped working etc., provided your current MAGI has gone down.


@youth wrote:

Part B and D are both impacting my social security .  Very close to $400 per month.  The amount is based upon Line 7 of 2018  taxes.  Unfortunately, it is based upon income and not upon medical well being as it should be in my opinion.  Very few ways of reducing adjusted gross income...line 7.  

Gabe


 

GLI2019
Contributor ○

Re: Medicare ripoff

Agree with Bentley and Carlos.  I (we) pay IRMAA and have done for years.  Will likely pay more throughout our lifetime.  It's worth it (actually, it's more than worth it).

Bob

GreyHound
Follower ○○○

Re: Medicare ripoff

 


@youth wrote:

Part B and D are both impacting my social security .  Very close to $400 per month.  The amount is based upon Line 7 of 2018  taxes.  Unfortunately, it is based upon income and not upon medical well being as it should be in my opinion.  Very few ways of reducing adjusted gross income...line 7.  

Gabe


Interesting to see a post like this the day before Thanksgiving ......

ECEPROF
Participant ○

Re: Medicare ripoff

1. You could reduce your line 7 or AGI using ROTH conversion early before you hit this age.  I did that and we are saving a ton of money by not paying too much in medicare premium as well as in taxes. Early tax planning is worth. No accountant or a CPA is going to teach you this. Just go through your own tax return line by line and you can learn a lot from this. It is probably too late now in your age.

2. Instead of paying Part B and Part D, you can go with a MA plan that includes all in one. You still have time to figure this out for 2020. I found out this immediately after retirement -  a decade ago. Specifically, PPO plan as my wife and I have, we pay the co-payments with zero additional premiums other than the standard Medicare premium. Life experience is very useful here. You have a lot of life experience. So, is it not too late to complain?

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yogibearbull
Valued Contributor

Re: Medicare ripoff


@ECEPROF wrote:

1. You could reduce your line 7 or AGI using ROTH conversion early before you hit this age.  I did that and we are saving a ton of money by not paying too much in medicare premium as well as in taxes. Early tax planning is worth. No accountant or a CPA is going to teach you this. Just go through your own tax return line by line and you can learn a lot from this. It is probably too late now in your age.

2. Instead of paying Part B and Part D, you can go with a MA plan that includes all in one. You still have time to figure this out for 2020. I found out this immediately after retirement -  a decade ago. Specifically, PPO plan as my wife and I have, we pay the co-payments with zero additional premiums other than the standard Medicare premium. Life experience is very useful here. You have a lot of life experience. So, is it not too late to complain?


Good idea on Roth Conversions ahead of RMD age to alleviate the issue.

But IRMAA cannot be escaped just by switching to Medicare Advantage [MA]. You have to keep paying what is owed to Medicare for Part B [basic + extra due to IRMAA + late penalty] plus something extra to the MA; Part D may be included in the MA.

YBB
youth
Explorer ○○○

Re: Medicare ripoff

Premiums should be based on medical spending and not income.  Medical insurance should be based on usage i.e.. auto insurance....insurance is lower if you have lower and or fewer claims.  Not so with medicare.

 

Gabe

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yogibearbull
Valued Contributor

Re: Medicare ripoff


@youth wrote:

Premiums should be based on medical spending and not income.  Medical insurance should be based on usage i.e.. auto insurance....insurance is lower if you have lower and or fewer claims.  Not so with medicare.

 

Gabe


There is underwriting for auto insurance.

There is no underwriting for Medicare - that is, there is no medical exam or history required. Everyone can sign in based on age and work credits but pays according to income.

It is more like a social support system for seniors that is means tested. Of course, one can opt out and buy private insurance.

YBB
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pudman
Explorer ○○○

Re: Medicare ripoff

I just signed up for Medicare A+B (135$) and when I get my geezer card I will (No, NOT immediately start complaining about the evil government and Commie health care) apply for Medigap Plan G (160$) and the Plan D (about 15$). About 300$, which for the United States is incredible as far as I can determine. You thik you have something to gripe and groan abut? Crikey. I'll be paying for 12 months coverage even though I'll only be in the country for 6 months of every year. And the same for Japanese National Health. Yes, I'll have Commie health care in spades  but I'll be paying double what someone who just sits at home  does. Go Zags!

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Bentley
Contributor ○

Re: Medicare ripoff


@youth wrote:

Premiums should be based on medical spending and not income.  Medical insurance should be based on usage i.e.. auto insurance....insurance is lower if you have lower and or fewer claims.  Not so with medicare.

 

Gabe


 

 So those who are sick and unable to work pay higher premiums? Have a heart man. Those of us that are fortunate enough to have our health and high incomes can certainly help by paying "our fair share".

youth
Explorer ○○○

Re: Medicare ripoff

What is our fair share?  No....We all should pay equal given the fact we all receive the same benefits.  Those who require a lot of medical intervention should receive it and not pay extra and so will be getting more or the same premium.  

There comes a time when a socialistic type of medicine will create our society to become all poor!

Gabe

 

 

ECEPROF
Participant ○

Re: Medicare ripoff


@youth wrote:

What is our fair share?  No....We all should pay equal given the fact we all receive the same benefits.  Those who require a lot of medical intervention should receive it and not pay extra and so will be getting more or the same premium.  

There comes a time when a socialistic type of medicine will create our society to become all poor!

Gabe

 

 


I saw a bill board last Saturday on Interstate 65 near Columbus, IN that states "Health Care is a human right."

Of all the places, it is Pence's home town. Go and figure out this one. You signed up for medicare knowing the rules that are dictated by the laws of this country. 

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wayoutwest
Participant ○○

Re: Medicare ripoff

The U.S. graduated income tax must really goad you. At least you can opt out of Medicare.

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yogibearbull
Valued Contributor

Re: Medicare ripoff

Medicare funding   https://www.kff.org/report-section/a-primer-on-medicare-how-is-medicare-financed-and-what-are-medica...

"Part B, the Supplementary Medical Insurance (SMI) trust fund, is financed through a combination of general revenues, premiums paid by beneficiaries, and interest and other sources. Premiums are automatically set to cover 25 percent of spending in the aggregate, while general revenues subsidize 73 percent. Higher-income beneficiaries pay a larger share of spending, ranging from 35 percent to 80 percent of Part B costs. Part B revenues totaled $255 billion in 2013."

Figure 29: Sources of Medicare Revenue, 2013

YBB
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youth
Explorer ○○○

Re: Medicare ripoff

There is a relatively new medical primary care practiced by physicians whereby one can pay a monthly fee and receive all outpatient type care.  The practice charges a fee based upon what the patient requests and or needs.  It can range between $75 to $150 monthly. Fees are non deductible.  Unfortunately, inpatient care is not covered. Prescriptions are available at a very low cost.  Patients can be seen as many times as needed.  Doctors are available 24 hours.

I believe that this type of medical intervention is in its infancy.  Perhaps, inpatient and specialized care will also be available.  The costs are very reasonable.....patients are seen for about a half hour.  Insurance in not acceptable, to include medicare.  

Something is on the horizon.  Medicare is drowning in debt and overuse and poor management.  As an 80 year old, I use medicare very infrequent.  

Gabe

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GLI2019
Contributor ○

Re: Medicare ripoff

"poor management," says Youth.

I say facts are stubborn things.

From the Kaiser Family Foundation:

"The overall cost of administering benefits for traditional Medicare is relatively low. In 2018, administrative expenses for traditional Medicare (plus CMS administration and oversight of Part D) were 1.3 percent of total program spending; this includes expenses for the contractors that process claims submitted by beneficiaries in traditional Medicare and their providers. This estimate does not include insurers’ costs of administering private Medicare Advantage and Part D drug plans, which are considerably higher. Medicare’s actuaries estimate that insurers’ administrative expenses and profits for Part D plans were 10.7 percent of total plan benefit payments in 2018. The actuaries have not provided a comparable estimate for Medicare Advantage plans; however, according to a recent analysis, simple loss ratios (medical expenses as a share of total premiums collected) averaged 86 percent for Medicare Advantage plans in 2018, which means that administrative expenses, including profits, were 14 percent for Medicare Advantage plans."

Don't believe everything you think.

Bob

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