Tuesday, March 17, 2020

Medicare 101 - Math Is Hard

In 2013 Mayor Rahmbo Emanuel instituted a cost cutting measure that saved Chicago "tens of millions of dollars". And retired city workers paid the price.
How to qualify for Medicare when you did not pay Medicare taxes

Among the perks promised to older city workers — affordable health insurance in retirement.

But in 2013, then-Mayor Rahm Emanuel announced he was ending the benefit to save cash.

Retirees who started working before 1986 were hit the hardest.

They never contributed to Medicare during their employment — the city’s choice, not theirs.

As a result, many now don’t qualify for government health insurance, even at age 65.

For a single retiree, the annual cost is now more than $33,000, whereas before it cost a few thousand dollars. - WGNTV News

More than $33,000 per year . . .

Missing the Mark

One is not required to pay into the Social Security system via payroll (FICA + MEDICARE) taxes to be ELIGIBLE for Medicare.

If you or your spouse are US citizens with 5 years residency you may BUY IN to Medicare.

Buy In To Medicare

Medicare Part A premium $458 (2020) - Current premium for those who do not have 40 quarters of Medicare wages.

Medicare Part B premium $145 (2020)

$458 + $145 = $503 x 12 = $6,036

$33,000 - $6,036 = $26,964

Math is hard . . .

Never let a serious crisis go to waste.

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