Almost Like Another Ponzi Scheme
This doesn’t appear to be a sustainable system:
Consider an average-wage, two-earner couple together earning $89,000 a year. Upon retiring in 2011, they would have paid $114,000 in Medicare payroll taxes during their careers.
But they can expect to receive medical services – from prescriptions to hospital care – worth $355,000, or about three times what they put in.
As each generation shrinks in size from the previous, the number of payers decreases, and as medical science and individual longevity advance, the pay outs increase. That’s why folks my age don’t really expect to see a penny of such “entitlements.”