43 votes
Accepted

What is the cost of health care in the US?

The most important thing to keep in mind is that billing in the US healthcare system is utterly insane. Identical procedures and even medication prices can vary wildly in price depending on where you ...
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  • 1,243
27 votes

Why do I have to pay Medicare payroll deductions while I am retired if I am still working?

This is something that many people misunderstand. Nearly everyone who works in the U.S. is required to pay Social Security and Medicare taxes (sometimes called payroll taxes or FICA). These are not ...
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19 votes

What is the cost of health care in the US?

The US health care system has many maladies, and the absurd prices are only one effect of it. Most people don't pay those prices, as insurances negotiate the hospitals and doctors down, and the ...
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  • 37.1k
11 votes

What is the cost of health care in the US?

Many of your numbers are exaggerations: If you visit a doctor for the treatment of a colds cost $1000. (In Japan, it's typically less than $30 if you use insurance.) With my doctor an office visit ...
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9 votes
Accepted

In the USA, do OASDI, Medicare, and Federal income taxes stack?

NO, all these taxes are computed separately on the 'base' wages reported on W-2. Your figures for employee SS and Medicare taxes are correct, but Federal income tax is wrong. Federal income tax is ...
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8 votes
Accepted

what is the point of the part b late enrollment penalty?

The point of the enrollment penalty is basically the same as the ACA penalty. Any sort of health insurance - or really, any insurance - is funded by creating a risk pool of high and low risk people ...
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  • 35k
7 votes

What is the cost of health care in the US?

I can give one illustration: Some years ago I had a kidney stone attack while on a trip to Mississippi (from Minnesota). I checked into the emergency room of the local hospital and eventually, after ...
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  • 179
6 votes

Medicare penalty

In many cases your employer coverage will grant you a qualified waiver from Medicare and remove your penalty exposure. To start you should call the employer plan administrator, they generally know ...
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  • 48.6k
5 votes

Double dipping Medicare payments

You are not paying SS and Medicare premiums from your part-time wages; you are paying SS and Medicare taxes that are imposed on wages, and there is no way of avoiding those taxes. If your income is ...
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5 votes
Accepted

If I had no income due to a net operating loss, will I be refunded the Social Security and Medicare taxes withheld?

If you have a CPA working for you already - this is a question you should be asking that CPA. Generally, NOL only affects the tax stemming from the Internal Revenue Code (Title 26 Subtitle A of the ...
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  • 131k
5 votes

Will my surgery bill be covered by Medicaid if I just started a new job?

Who covers the medical expense depends on the policy that was in force on the date the service is provided. It doesn't depend on when the bill is generated, or when the the provider is paid. For a ...
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4 votes

USA Health Insurance for Senior

I'm guessing you/your wife provided immigration sponsorship. If so, one thing you/her/both had to sign was an "affidavit of support" that says that you will provide her basic needs and she won't be a ...
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  • 131k
4 votes
Accepted

Income tax on Medicare premium paid by employer

Employers may reimburse employees for medical costs through a Section 105 plan, named after the IRC Section 105. Reimbursements made this way are tax free to the employee. Reimbursements can be used ...
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  • 16.8k
4 votes
Accepted

HSA and Medicare: what if I get laid off?

First, I want to restate some of the premises of your question (which are correct): Medicare coverage disqualifies an individual from being eligible to contribute to an HSA. If you delay enrollment ...
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4 votes

What is the cost of health care in the US?

In summary: Some points from the article are "utterly ridiculous"; some are "unrealistic". If you visit a doctor for the treatment of a colds cost $1000. (In Japan, it's typically ...
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  • 13.5k
3 votes

Social Security and other liabilities for foreign employers of US citizens working remotely

Say you are in "Denver" and they are in "France". They pay you completely, utterly normally "As if you are a French person". You then square everything with the IRS at ...
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  • 13.5k
3 votes
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Medicare and living in Mexico

If you are a US citizen, Medicare will pay for services within the US and its territories. So there should be no problem unless you need emergency care in Mexico because: Some of the Medigap plans ...
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  • 73.9k
2 votes
Accepted

Are Medicare Part B premium income tiers indexed for inflation?

According to Kaiser Family Foundation: The 2010 Affordable Care Act (ACA) modified current law related to the Part B income-related premium.10 The law imposed a freeze on the income thresholds ...
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  • 20.8k
2 votes

Downside to W2 with base salary and allowance?

I would pay less in SS and medicare which could also make your social security benefit smaller. When determining the benefit amount at retirement they look at the amount you made over your career. ...
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2 votes
Accepted

What happens when the Medicare deductions on one's Social Security (SS) check are larger than the SS benefit?

Several FAQs state that you can be disenrolled for not paying your IRMAA, e.g. https://www.cms.gov/Outreach-and-Education/Outreach/Partnerships/downloads/11338-P.pdf Since presumably people who are ...
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2 votes

Medicare Part A and a Health Savings Account (HSA)

No, you can't. If you enroll in Medicare Part A and/or B, you can no longer contribute pre-tax dollars to your HSA. This is because to contribute pre-tax dollars to an HSA you cannot have any ...
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  • 49k
2 votes
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What kind of health insurance does the American public have and how do they benefit from it?

It functions like any other kind of indemnity insurance, but in an expensive setting Indemnity insurance is financial protection for an unforeseeable risk in the future-- like the risk that you will ...
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  • 1,538
2 votes

What kind of health insurance does the American public have and how do they benefit from it?

it is pretty unsurprising that health care is incredibly different in different countries. anyone who's lived in more than 1 country knows this you can literally see what US people see, say here: ...
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  • 13.5k
2 votes

HSA and Medicare

The concern, for anyone wondering, is that when you begin Medicare, you are retroactively covered for six months before your start date, and this coverage retroactively makes you an ineligible ...
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2 votes

Are 401k withdrawals included in income for Medicare premiums?

You do not need to report your income to Medicare. Medicare looks at your tax returns to calculate the income-based portion of your premiums. As a result, if you take taxable distributions from your ...
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2 votes

F1- OPT - Resident Alien - Social Security and Medicare taxes in the USA

If you are working on campus in the school where you are studying, you are exempt from FICA on that work even if you are a resident alien or US citizen. See this page for more details. If you are ...
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  • 15.7k
1 vote

How do I solve an accidental violation of Medicare's 6-Month look-back HSA contribution prohibition?

Your HSA provider typically has a form to fill for undoing part or all of your contributions ("Withdrawal of Excess Contributions"). If it is not on the website, call them. It's pretty ...
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  • 37.1k
1 vote

When Would My Medicare Part B Coverage Begin?

Usually, Medicare coverage starts effective with the beginning of the month in which the enrollee turns 65, with, of course, the initial application for Medicare coverage having been made about three ...
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1 vote

Can I defer starting Medicare if 65 and on COBRA after a lay-off? (HSA, COBRA, and Medicare)

There are some things to consider with this scenario that you may not be looking at. How often do you go to the doctor? What are your COBRA Premiums? What are your out of pocket costs with your COBRA ...
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1 vote
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Paying for nursing home care: What is the relationship between Medicare and owned property?

This is really a question for an elder law attorney but roughly-speaking, what that means is: Americans who cannot private-pay for their care can receive government-funded care in a nursing home. The ...
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  • 915

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