President | Founder, CLM Insurance Group, Delray Beach, FL
In an attempt to fairly answer a hypothetical question...if there were no Medicare I believe we would be forced back to a private, capitalist healthcare system where Americans aren't required to have coverage subject to a penalty and the society (young & old) would have to get their own coverage.
The downside is that Baby Boomers are maturing at such a rapid-pace, insurance companies could possible gouge the insured in the form of premiums out of greed.
The upside is it would release an enormous (and almost unsustainable) financial burden on the American economy and government. The budget for Medicare alone in 2013 was ~$585 bil.
For more information on Medicare (or lack there-of) visit www.clminure.com or call 561-320-2978
That's a great question! Also not one easily answered...On one hand if there were no programs, we'd have a significantly smaller Government budget, and a whole lot less debt and worry about that future debt. There would be a more open market for health services, and a greater dependency upon the honesty of the provider when they tell you they love you more than their profits. The other side of the story? As there are approximately 10,000 people turning 65 everyday, most with little or no retirement plans other than social security ( which puts them well below poverty level in most cases)and no provision for protection from the increasing costs of long term care, we would probably find that the mortality rate among the +65 set would dramatically rise , and life expectancy lower, as a result of them not being able to afford the medical services that would be otherwise available. What makes your question really interesting is its natural follow up - "what do we do to fix the system so the most people can benefit?" That's the real question! Thanks for asking!
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
If Medicare didn't exist, health insurance care for seniors would be covered in the same marketplace as the under 65 persons - in short, the private sector. However, the premiums would be substantially higher than what they pay today for Original Medicare and any supplemental coverage programs, including prescriptions (a big expense). During your working life, you're paying FICA taxes - after you've hit the 40 quarters mark (10 working years), your Part A coverage is premium-free. If you had to pay for it out of pocket, it would be $426 per month (in 2014). Your Part B coverage requires a premium ($104.90 per month in 2014) and you would pay a premium for any supplemental coverage - supplement plans are provided by private insurance companies.
The idea of paying taxes all these years for it is so that you're slowly paying for it in advance so you're not hit with a massive premium bill in the future that you may not have prepared for.
In summary, a senior citizen could end up paying somewhere in the neighborhood of $800+ per month per person with everything factored in (probably higher) if Medicare didn't exist. As a current or future recipient of Medicare, I bet you're glad it exists.
In the future, however, programs and benefits may have to make changes given the baby boomer generation hitting the retirement ages and going on Medicare - the baby boomer is the largest generation and can create a situation where the funds going out to pay for Medicare are larger than the funds coming in through taxes. Only time will tell on this aspect though.
If you have any questions about Medicare supplemental plans, send me a message by clicking on the "contact me" button or call me at 703-665-9133.
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The downside is that Baby Boomers are maturing at such a rapid-pace, insurance companies could possible gouge the insured in the form of premiums out of greed.
The upside is it would release an enormous (and almost unsustainable) financial burden on the American economy and government. The budget for Medicare alone in 2013 was ~$585 bil.
For more information on Medicare (or lack there-of) visit www.clminure.com or call 561-320-2978
The idea of paying taxes all these years for it is so that you're slowly paying for it in advance so you're not hit with a massive premium bill in the future that you may not have prepared for.
In summary, a senior citizen could end up paying somewhere in the neighborhood of $800+ per month per person with everything factored in (probably higher) if Medicare didn't exist. As a current or future recipient of Medicare, I bet you're glad it exists.
In the future, however, programs and benefits may have to make changes given the baby boomer generation hitting the retirement ages and going on Medicare - the baby boomer is the largest generation and can create a situation where the funds going out to pay for Medicare are larger than the funds coming in through taxes. Only time will tell on this aspect though.
If you have any questions about Medicare supplemental plans, send me a message by clicking on the "contact me" button or call me at 703-665-9133.