Can Medicare Take My Money?

What Is Medicare?

Medicare is the government run health care program that is specifically targeted towards seniors. Primarily these are the only people who are able to get into the program, but there are some exceptions to the rule. This program is an entitlement program. That means that it is something that is currently guaranteed to all American citizens when they are old enough to meet the requirements.

How Does This Program Work?

The program is there to help seniors be able to pay for all of the medical expenses that they have. The idea is that since many seniors do not have any income coming in the door, they should be taken care of. Seniors are also the ones who use the most health care. That means that many of them would live in poverty if it were not for the Medicare program.

How Does This Program Get Its Money?

The money that is used in the Medicare program comes directly from workers. There is money taken out of every paycheck in America that goes towards paying for Medicare. This means that all of that money is collected by the government and then redistributed among those who are on Medicare to help pay for their expenses when they make a claim. Obviously, Medicare does not cover everything, but the things that it does cover are paid for with the money from the workers of today. When the workers of today are old enough to have Medicare, then the workers of tomorrow are going to be the ones paying for their expenses.

What Else Do I Need To Know?

Yes, Medicare does take some of your money right now, but it will be other people’s money that you are using in the future, so it all kind of evens out.

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