John T said...
......... Many will point to the success of Medicare, but it is a system that currently averages $33,000 in lifetime payments and doles out $350,000 in life time services, what's not to like about that, but how can a system that pays out more than 10 times what it receives last more than a few decades without collapsing.
My lifetime payment into MCare, counting the total I was forced to pay when self employed and the part my employers added to my payments was $72,000. Most of those 45 years the interests rates were from 6 to 14%. I once actually received 18% from a bank for a short time. If the money taken from me had actually been set aside in my name and invested in CDs or government T-bills, even at a mere 6% return I would have $153,000 towards my medical expenses. At 6%, $371,283. At higher rates, or some part in the stock market, it could easily be a million+.
Or another way I often look at it, if that money that was taken from me for my future medical care had instead been used to buy a health insurance policy at an average of $134 per month times 12 months a year X 45 years($72360) starting in my teens which I could not touch until I was 65, can you imagine what kind of gold plated policy that would buy, with the insurance companies free to invest that money over 45 years?
But of course it was not invested, and it did not buy me a future health ins policy except for MCare, and in fact the original sum may not even be there but already spent somewhere else, and there is not enough money in reserve to cover the coming expenditures.
Post Edited (BillyBob@388) : 2/22/2015 12:20:14 PM (GMT-7)