Who pays for Medicare?
- How do I afford health care in retirement?
- What is Medicare?
- Who pays for Medicare?
- What is Medicare Part A?
- What is Medicare Part B?
- What is Medicare Part C?
- What is Medicare Part D?
- What is Medigap insurance?
- Which Medigap policy should I buy?
- Where can I learn more about Medigap?
- What is Medicaid?
- What does Medicaid cover?
- Should I get long-term care insurance?
- How can I tell if a nursing home is a good one?
- Will my health coverage be affected if my spouse dies?
Medicare is funded by the Social Security Administration. Which means it's funded by taxpayers: We all pay 1.45% of our earnings into FICA - Federal Insurance Contributions Act, if you're into deciphering acronyms - which go toward Medicare. Employers pay another 1.45%, bringing the total to 2.9%. (If you're self-employed, you must cough up the entire 2.9%.) The Medicare deduction on your paycheck might say FICA-HI. The HI refers to Health Insurance, and it's your premium cost for all Medicare coverage.
While the portion of our FICA taxes that cover payments into the Social Security system are levied only on the first $102,000 in earnings for 2008, the Medicare tax is levied on every penny you earn.
You will also pay some Medicare costs yourself when you start using the plan.
