Medicare Advantage Overbills Taxpayers by $140 Billion a Year--Enough to Wipe Out Medicare Premiums

[moose65]

53. That's not how it works

Another common myth. People don't understand how Medicare funding works, just like they don't understand how Social Security works.

The 1.45% that was taken out of your checks while you were working was not to pay for YOUR healthcare. That money was used to pay for Medicare services for the people who were on Medicare at that time. And now that you're retired, the 1.45% that current workers pay is used to pay for YOUR healthcare, whenever you need it. There isn't some account deep in a vault in DC that has your name on it and the money you paid in deposited there. You're not getting your own money back in retirement.

It's insurance. When you pay ANY kind of insurance premium, the money you pay isn't used just to pay claims that you might have - it's used to pay claims for anyone in that insurance pool. It's called sharing the risk! I have paid homeowner's insurance premiums for 20 years now, and have never filed a claim. All the money I've paid in premiums isn't sitting somewhere just waiting for me to use it. And if I never use it, I won't get my money back, either.