Bignell WK8 D5 - The Medicare program is pretty simple. The...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The Medicare program is pretty simple. The Federal Government borrows money, from the working people, to provide a service to people whom are no longer working. Medicare is available to “persons 65 or older people of any age with permanent kidney failure, and certain disabled people” (Chambers & Wedel, 2005). Medicare part A (Hospital Insurance) workers pay 1.45 percent, and on unlimited earnings in 2004 (Chambers & Wedel, 2005). Employers also pay 1.45 percent of the employee’s income to Medicare, so a total amount of 2.9 percent is taken for Medicare. People who are self employed pay a total of 2.9 percent, “however they receive a personal income tax deduction for half of it” (Chambers & Wedel, 2005). This is a great program as long as the funding is available. They think the funds will run out by 2025. If the funds run out the people who are paying in now will not be able to receive the benefits nor will they get their money back. Unemployment insurance is funded a bit different than the Social security and the Medicare programs.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Bignell WK8 D5 - The Medicare program is pretty simple. The...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online