How Health Reform Affects Current and Future Retirees
Wednesday, May 11, 2011
by Courtney Collins and Andrew J. Rettenmaier
This year Medicare will spend more than $530 billion. Beneficiaries will pay for about 20 percent of spending through premiums and income tax payments. Workers will pay the remaining 80 percent through payroll and income taxes. In return for transferring their income to retirees, workers expect to receive health care benefits when they retire or if they become disabled.