Of course Medicare part A is paid for by payroll tax. That is the part that is going bankrupt. The part A program pays hospitalization costs. When you go in the hospital, that is what it pays for is the doctor, the surgeon, the hospital bills. There is some nursing home coverage and a little bit of home health coverage there. Part B is outpatient coverage. Part B pays for home health and doctor bills. But part B unlike part A is paid mainly out of the Federal treasury. Twenty-five percent of it is paid by the senior citizens, about $46 a month. Whereas the other 75 percent comes right out of our Federal treasury. No one pays a penny into it. It is a pay-as-you-go type plan. Supplemental, the senior citizens pay the full costs of it. They have a choice of about 10 plans. They pick the one they want. If they want a Cadillac plan, they pay a very expensive bill. If they want to take a lesser expensive version, they do not have to pay as much. But it is very complicated. No one in the private sector has to live with three insurance plans. Basically you just only have one plan. When I was in the private sector I had one plan. As a Federal employee I have one plan. That is the way it works. But not for senior citizens. We have created this very difficult plan. The benefits are not even that great sometimes. As I say, most of them do not get drug coverage. They do not have all the choices they want. It is a very paperwork, bureaucratic type plan.
Jeff Miller: “Of course Medicare part A is paid for by payroll tax. That is the part that is going bankrupt. The part A program pays…”
Editor's note · Context
Discussing the complexities and challenges of Medicare parts A and B.
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