Who pays for Medicare?
- When I retire, can I keep the health plan I have now?
- What is COBRA?
- What if I retire and have no health plan?
- How much will health insurance cost me in retirement?
- Where can I purchase individual health coverage?
- Does my spouse need a separate policy when I retire?
- What if I can't get individual coverage?
- How can I keep my health costs down in retirement?
- Where should I put my health care savings?
- How does a Health Savings Account (HSA) work?
- Who can participate in an HSA?
- 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?
- What is Medicaid?
- What does Medicaid cover?
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 our FICA taxes to 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.
