so now is a great time to talk about the future of medicare there's so much talk going
on in washington right now where they are about to spend a tremendous amount of money on all sorts of
different things and whether that's right or wrong whether we agree with it or we don't agree with it
really not here to talk about that we're going to talk about the future of medicare and how
this might impact what is certainly important to us i'm certainly close enough to medicare
that i'm concerned that it will be there in five years 10 years 20 years and you
should too so we need to understand exactly how it functions and what might come of it
with everything that's going on if you're new here i'm keith armbrack founder of medicare on video
and i help people across the country make the right medicare choices and i can absolutely help
you as well if you stay to the end of the video i'll show you how to download my book medicare
made clear it's absolutely free and it's a great resource to have for now and in the future for any
medicare issues that may come along but let's talk about the future of medicare and where it may be
first kind of important understand exactly how it functions so what it's all about right now
there's about 63 million people in medicare and that's a significant part of the population so an
important thing to understand an important thing to protect and my concern is when they're talking
about spending just trillions and trillions of dollars on all sorts of different programs
what will happen when medicare actually needs the money itself and that's kind of where it could
get concerning so right now in 2020 medicare cost about 776 billion dollars so that's what it costs
to run medicare medicare makes up currently about 12 percent of the entire u.s budget so the budget
is huge medicare is a huge piece of it we're not even going to talk about social security which is
about equal to medicare in the size and scope of how it functions within the budget but medicare
is obviously a big piece of the budget and it is far from paid for so it is far from solid ground
and that's what concerns me is as we spend these trillions and trillions of dollars
when it comes time to refund medicare how will it actually happen so when we look at how medicare is
actually paid for it's important to understand my first question to you and it's important that we
get a dialogue here is do you trust the government to protect medicare are they capable of protecting
medicare so in my experience it's been that they may have good intentions but a lot of bad things
happen and a lot of unintended consequences happen when they do these massive programs that are going
to go out where they want to do one thing but then the government has control of it and it ends
up doing something else so first question to you answer below the video do you trust that they're
doing the right thing and that they know what they're doing i'd be interested to see exactly
what you think of that when we talk about how medicare is funded it's important to understand
this too most people have no idea so it's broken down into two silos so you have medicare part a
is one silo and medicare part b is another silo they're completely separate from each other and
most people don't understand that that's why there is medicare part a in medicare part b because
they're funded differently so medicare part a which is things that go on inside the hospital
so if you're inpatient in the hospital that's what medicare part a is going to pay for medicare
part b pays for thing outside the hospital so doctors visits outpatient surgery specialist
visits things like that so they're kind of on different tracks but obviously we need them both
and we need them both to work so the way they're funded the medicare part a stuff that goes on
inside the hospital is funded from payroll taxes primarily so the money that you have
put into medicare your entire working life is what is used to fund medicare part a it also
has income tax on social security benefits as part of its funding and some trust fund money as well
but primary source for funding medicare part a comes from that medicare tax on your paycheck
every two weeks or however often you got paid your entire working life so that funds medicare part a
inside the hospital medicare part b is funded by basically money that congress puts into it
so congress has to approve funds to make medicare part b work now it's also funded by premium so
there's no premium for the most part on part a on part b there is a premium and it's also income
adjusted so the money that's paid for premiums goes into funding medicare part b also trust
fund interest as well goes into funding part b but primarily it is money that congress allocates to
keep medicare alive now back to the premium part like i said on medicare part a there's no premium
as long as you have worked for 40 quarters so for 10 years and you've paid into the system you have
no premium on your medicare part a if you have not worked for 10 years contributing to medicare tax
you will have a premium on your medicare part a so my question number two is will you do you think
you will have a premium on your medicare party have you worked for 10 years paying into medicare
if not you will likely have a premium so do you think you've got that covered do you think
you have to figure out whether or not you have a premium and again we help with all that so if you
have any questions just give me a call send me an email we'll walk right through it we'll make sure
everything gets done properly and the best part is there's no cost to you
to let us help you so hopefully you'll allow us to help you so that's how things are funded
in medicare certainly important understand now what is the projection of the funding and why is
it so concerning right now and the main reason is the cbo which is the congressional budget office
which is supposedly nonpartisan and just tells it like it is and tells the house and the senate
when stuff is going to go bad and how much longer they have says right now that medicare is going
to run out of money go bust in 2024 and if you look at your calendar that's not very far away
so that's a couple of years down the road medicare is out of money and the medicare trustee report
which is similar to the cbo says it's going to run out of money in 2026. so somewhere between 2024
and 2026 medicare is going to run out of money and it's going to be back on congress to refund it
and in a big way it's not a small funding issue and that's where the concern is that if they fund
all these other things with trillions of trillions of dollars when all of a sudden we need another
trillion for medicare are we going to have it and you know it's going to play out in a way that's
going to be different than other times now what makes this concerning there's a chart that shows
over the life of medicare what the chart shows is how far away it is from running out of money
so not how much money or how much it needs but how far is away from running out of money if you
look at this chart where we are right now today it's the lowest level it has ever been so we're
closer to running out of medicare money than we have ever been previously so is that concerning
will congress actually get together and figure it out and fund medicare and put it off you know they
generally kick things down the road for a year or two but you know medicare obviously needs
more than that it needs to be a long-term funding project so something for us to keep our eye on and
if it starts to go crazy we need to really jump up and do something about it so i hope this gives
you kind of an overview i don't want to put fear out there for medicare it's likely to be just fine
it's likely to survive congress generally doesn't have any choice but to put money in it my concern
is will they have the money to put in it so that gives you an overview on the future of medicare
stay tuned i'll show you how to download my book right now you can have it for free without
any questions asked and i hope you found all this helpful have a fantastic day
thank you for taking the time to watch my video hope you found it helpful something you will
absolutely find helpful if you're coming into medicare or even if you're already in medicare
is download a copy of my book medicare made clear i've spent a lot of time and a lot of effort on
this book and i give it away for free you'll find that i cover just about every piece of medicare
in this book and it's easy to read and easy to understand i've also put videos throughout the
book where i explain everything to you so if you don't want to read through all the information
just watch the videos and i'll walk you right through everything you need to know about medicare
you also find all the links and the guides that you need now either to sign up or in the future
for things that come along so take just a minute visit medicare medicareonvideo.com forward slash
free book you can download it right now and it's yours to keep i hope you find it helpful
have a great day hey don't go anywhere these are some of my most recent videos right here
you can also find the link right below this video to download my book
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so please download my book watch some videos subscribe to the channel have a great day