General Discussion
In reply to the discussion: Why are there no Dems talking about lower medicare to 55 to save money & gain jobs? [View all]Yo_Mama
(8,303 posts)About 75% of the Part B premium is paid by the General Fund. If the early retirees were going to pay $350 -$400 monthly, then the subsidy would be much smaller. But that takes the monthly cost to $441 (part A premium) + $370 (part B premium, unsubsidized) + Part D (prescription drug benefit, mostly unsubsidized). That's at least $860 a month per person, or about $1,700 a month per couple, without Medigap. That's some part-time job. Again, this is only doable for those who are already wealthy.
There is another hidden subsidy - Medicare pays much less than private rates for a lot of services, which is why many doctors don't take new Medicare patients or limit the number they take.
Medicare is not really more efficient than private insurance - it is just cost-controlled. The balance of the costs is shifted to other consumers and to private insurance.
It is not right to ask some $30,000 a year earner to pay these costs for older, better off would-be retirees, and if you actually get the would-be retirees to pay the costs, only the pretty wealthy could retire. I can think of no public benefit that would result from this.