Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search


(24,260 posts)
2. Current Medicare receipients pay $135 a month in premiums, sometimes more if they have an Advantage
Thu Aug 1, 2019, 11:35 AM
Aug 2019

plan. And that is per person.

One assumes that any public option buy-in would cost at least as much as Medicare, which means that a family of four would be paying $540 a month in premiums. Not bad, but not good if your employer happens to be paying 100% of your premiums.

Then, there's the 2.9% Medicare payroll tax that is shared by employee and employer (each pays 1.45%). That's $725 per year for an employee making $50,000 a year. But that deduction is only enough to cover the current 19% of people on Medicare. That deduction may need to increase FIVE FOLD to suddenly cover 100% of the population. That's $3625 a year for that person making $50,000.

And what about covering the wife and kids in a single-income household? Would that payroll tax deduction go even higher in such a situation?

Add it all up and a family of four under MFA earning $50,000 a year could be paying over $10,000 a year in premiums and taxes. Of course, one assumes there would be exceptions and exemptions for low-wage earners. Just a matter of where those lines are drawn.

Bottom line: no way a public option can ever be free.

Latest Discussions»General Discussion»Unless the "public option...»Reply #2