Can someone explain Medicare ?

[evilcanuck 0]

more specifically....why are they deducting it from my husbands paycheck ?

Its the first time we noticed it.

He has been with this company about 2 1/2 months and prior to this, he was with another that merged into the new one...no medicare deductions there...

it says Fed Medicare

i tried googling but all I can find is that its medical assistance for low income.....neither of us are sick....maybe we are just poor!!!!!

or is it a premium everyone pays in case they get sick? i always thought there was no healthcare unless u had private insurance...so used to Canada's universal healthcare system

anyways if someone could unfuddle me that would be great

[Mr. Big Dog 10,747]

more specifically....why are they deducting it from my husbands paycheck ?

Its the first time we noticed it.

He has been with this company about 2 1/2 months and prior to this, he was with another that merged into the new one...no medicare deductions there...

it says Fed Medicare

i tried googling but all I can find is that its medical assistance for low income.....neither of us are sick....maybe we are just poor!!!!!

or is it a premium everyone pays in case they get sick? i always thought there was no healthcare unless u had private insurance...so used to Canada's universal healthcare system

anyways if someone could unfuddle me that would be great

Everyone pays Medicare taxes on earned income. The other place may have had it shown combined as a deduction called FICA or something like that. You pay in while you work and supposedly when you get old and become eligible, you'll get something back. The former is for sure, don't count on the latter, though.

[desert_fox 32]

more specifically....why are they deducting it from my husbands paycheck ?

Its the first time we noticed it.

He has been with this company about 2 1/2 months and prior to this, he was with another that merged into the new one...no medicare deductions there...

it says Fed Medicare

i tried googling but all I can find is that its medical assistance for low income.....neither of us are sick....maybe we are just poor!!!!!

or is it a premium everyone pays in case they get sick? i always thought there was no healthcare unless u had private insurance...so used to Canada's universal healthcare system

anyways if someone could unfuddle me that would be great

Wont kick in until you are 65. govt program administered by SSA. Until you are 65, you just pay. At age 65 it becomes your primary "insurance Co" and your private insurance becomes secondary.

[I'm Gone 60]

more specifically....why are they deducting it from my husbands paycheck ?

Its the first time we noticed it.

He has been with this company about 2 1/2 months and prior to this, he was with another that merged into the new one...no medicare deductions there...

it says Fed Medicare

i tried googling but all I can find is that its medical assistance for low income.....neither of us are sick....maybe we are just poor!!!!!

or is it a premium everyone pays in case they get sick? i always thought there was no healthcare unless u had private insurance...so used to Canada's universal healthcare system

anyways if someone could unfuddle me that would be great

Just about everyone that works in the United States is required to have FICA taxes withheld from their wages. The FICA tax has two part. Part goes toward Social Security and Part goes toward Medicare.

Medicare is medical insurance for people age 65 or older that have 10 years or more of covered employment or people at any age that have received Social Security Disability Insurance benefits for 24 months or have End Stage Renal Disease. You have Medicare Part A, which is hospital insurance (HI) and Part B which supplemental medical insurance (SMI). You also have Part C and Part D the prescription drug program.

What you looked up is Medicaid, which is state run with Federal funding and oversite.

more specifically....why are they deducting it from my husbands paycheck ?

Its the first time we noticed it.

He has been with this company about 2 1/2 months and prior to this, he was with another that merged into the new one...no medicare deductions there...

it says Fed Medicare

i tried googling but all I can find is that its medical assistance for low income.....neither of us are sick....maybe we are just poor!!!!!

or is it a premium everyone pays in case they get sick? i always thought there was no healthcare unless u had private insurance...so used to Canada's universal healthcare system

anyways if someone could unfuddle me that would be great

govt program administered by SSA. Until you are 65, you just pay. At age 65 it becomes your primary "insurance Co" and your private insurance becomes secondary.

It's run by Centers for Medicare & Medicaid Services (CMS) in the Department of Health and Human Services, not SSA. SSA just collects the premiums and does the Part A and B enrollment.

Medicare is not always the primary insurance.

In general, Medicare is secondary payer for services covered under any of the following:

Group health plans (GHPs) of employers that employ at least 20 employees and that cover Medicare beneficiaries age 65 or older who are covered under the plan by virtue of the individual's current employment status with an employer or the current employment status of a spouse of any age.

Large group health plans of employers that employ 100 or more employees and that cover Medicare beneficiaries who are under age 65, entitled to Medicare on the basis of disability, and covered under the plan by virtue of the individual's or a family member's current employment status with an employer.

Medicare is secondary for these individuals even if the employer policy or plan contains a provision stating that its benefits are secondary to Medicare benefits or otherwise excludes or limits its payments to Medicare beneficiaries.

Edited May 17, 2006 by mdyoung