What’s Medicare, and why is it in Trouble?
As discussed in the last article, social security is like a giant pension plan. The US government takes a chunk out of each paycheck and eventually returns it in the form of monthly paychecks after a certain age. With more, longer-living citizens, benefits must either be scaled down, which hurts seniors already struggling with current benefits, or the SS tax must be increased, which hurts current workers who pay into the system. Unfortunately, Medicare faces the same problem.
But first, what is Medicare? As the name suggests, it’s health insurance. Less obvious is the fact that it’s exclusively for older people, funded the same way Social Security is(thankfully, the tax is 4x lower). Medicare’s services are split up into four parts, labeled A-D. Part A comprises of hospital stays, Part B deals with medical insurance, part C provides for with private insurance, and Part D exclusively covers prescription drugs.