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Data from CMS, 2013:
Medicare enrollees: 53 million (+3% per year)
Medicare expenditures:$585.7 billion($11,253 per enrollee x 20 years=$225,000 lifetime)
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APPROXIMATED
a. 1/4 of premiums on half(x 2 programs)=($112,500/4)=$28,000=or $1400 per year over 20 years, plus interest
b. 1/4 of withholding on half similarly =$14,000 total = or $700 per year over 40 years, plus interest
----------------------------------------- -------------------------------------------------------->
CONTRIBUTIONS................................................................Death................Perpetuity
Age....................................O...............25.............................65.....................84........................105
Childbirth...........................1800
First-Last Seeding................... 400
Payroll Withholding.........................................................28,000
Seniors Premiums......................................................................................28,000
Total...............................$58,200
------------------------------------------------------------------------------------------------------------------------EXPENDITURES..
ASSUMPTIONS Childbirth Gift..................................18,000*
Childbirth Escrow............................... 250*
Contingency fund ................................100*
4 Last-years Re-insurance.(200,000)..666
Child Medical Expenses.....................17,000*
Interest on 17,000(age 0-25)................(85,000*)
--------------------------------------------------------------------------------------------------------------------------RUNNING BALANCE
ESCROWED INVESTMENT INCOME @ 7%
Individual Programs: Child Gift...................250(0)*............$1,125(25)*..$1,625(65)*..$64,000(84)*..$375,000(104)*
Payroll Tax ................0.00(25)..........$28,000(65)...$1,120,000(85)...$35,840,000(104)
Medicare Premiums...0.00(65)..........$28,000(85)...$1,148,000(104)........
Notice: Affordable Care Act, Contingency fund, Retirement provisions -- omitted.
Running Totals=$250(0)..$1,125(25)..$18,000(65)..$90,000(84)..$420,000(104)
Running Balance=$250(0)..$1,125(25)..$28,500(65)..$912,000(84)...$35,840,000(104)
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Total
Originally published: Monday, October 17, 2016; most-recently modified: Tuesday, May 21, 2019