Guess The $412/mo Hidden Govt Welfare LOVED by Old Teabaggers

The truth is only about 50% of Medicare can be called an “earned benefit.” Most folks don’t realize that since Medicare’s inception, the payroll tax (2.9% for most workers; and recently 3.8% for high income over $200,000 single/$250,000 married) funds only the Part A hospital insurance portion. And the standard premiums for Part B (doctor/outpatient insurance) and Part D (prescription drug insurance) are calculated to cover only about 25% of the actual costs of those programs.

You can see from the chart above that Part B and Part D get most of their funding — a whopping $189 Billion and $58 Billion respectively in 2014 — from general tax revenues. That’s the same pot of money that funds other important priorities like education, infrastructure, defense and food stamps. See the full Trustees report here (especially the Financial Data Chart on Page 11):

https://www.cms.gov/... 

That means that the typical Medicare beneficiary (including most old teabaggers) enrolled in Part B and Part D gets govt welfare of the other 75% — about $412/month — to cover the true cost of those programs.

Surprisingly, even the top 6% with higher incomes are still getting some govt welfare. Why are we giving these very high-earning seniors any govt assistance at all? Why aren’t they paying the full costs?

Thanks to a provision in some recently passed Medicare legislation, the thresholds for the income-related Medicare premium surcharges will drop down in 2018. So singles with income of $133,501 to $160,000 and married couples with incomes double that will pay 65% of the costs (instead of 50%). And the new cut-off for paying 80% of the costs will drop down to $160,001 single/$320,001 married. Well, that’s at least a start and will bring in about $4 Billion/year in additional revenue. Personally, I think we could means test some more. Even those seniors with INCOME of $85,000 single/$170,000 married can surely afford to pay more than 25% of the actual cost.

http://kff.org/...

Because Medicare enrollees do not have to stand in line at the DES office to get this generous govt subsidy, it is a type of hidden welfare— part of the submerged state that goes unappreciated. But make no mistake, there is no moral distinction between these Medicare premium subsidies and the Affordable Care Act premium subsidies, Medicaid, food stamps, etc.

And nobody “paid in all their life” to Part B or Part D. Heck, the Part D program did not even exist until 2003, with benefits starting in 2006. Chew on that all you ungrateful, Medicare-loving, Tea Party hypocrites!

The point: Anyone who signed up for Medicare Part B and/or Part D has absolutely no moral high ground to criticize someone getting a measly $120/month in food stamps or any other type of govt welfare for that matter.