Question

Playing the Social Security game, applying payroll tax to healthcare premiums solved 36% of the challenge. How does taxing healthcare help social security? And, what is the impact on Medicare?

People have talked about aging as critical factor for poor outcomes with Covid-19 exposure, identify 3 medical conditions that have been suggested to lead to poor outcomes.

Answer 1

ANSWER1: What is payroll tax?

A payroll tax is a tax withheld from an employee's salary by an employer who remits it to the government on their behalf. The tax is based on wages, salaries, and tips paid to employees. Payroll taxes are deducted directly from the employee's earnings and paid directly to the Internal Revenue Service (IRS) by the employer. In the United States, payroll taxes are divided into three main categories: Federal income, Medicare, and Social Security.

The benefits of paying pay taxroll or different ways of help that social security provides are:

• Funds paid to Social Security taxes go into two trust funds: Old-Age and Survivors.
• President Franklin D. Roosevelt signed the Social Security Act into law on Aug. 14, 1935, to provide a safety net for the disabled and retirees.
• The poverty rate among Social Security beneficiaries aged 60 or older would decrease faster than the poverty rate under current law.
• Social Security tax is also collected to support individuals who are entitled to survivorship benefits—benefits paid to a widow or widower upon the death of a spouse or to a dependent child upon the death of a parent.

• the tax subsidies result in the purchase of more comprehensive health insurance;

• lower coinsurance rates lead to increased demand for health care;

• Social Security actuaries estimated that, for most beneficiaries, this approach would result in over 90% of benefits being taxed.
• Social security secures the future after retirement, also provides secured money to disables or dependent persons, It can be issued to other claimed family members if that person is no more.

ANSWER2 : Imapct on medicare due to taxing on social security:

• SOCIAL SECURITY AND Medicare are social safety programs that Americans pay into during their working years through taxes. Both are designed to assist older Americans and distribute benefits to the disabled and their families
• Social Security provides financial support, and Medicare is a health insurance program that helps cover doctor visits, hospital stays and other medical treatments.
• To receive Medicare, individuals usually need to be age 65 or older. Medicare is also available to some younger Americans with disabilities and those with permanent kidney failure which requires dialysis or a transplant
• Medicare premiums are absorbing a growing share of Social Security benefits
• For example:  For a new retiree in 2010, the Part B premium absorbs about 9% of the Social Security benefit, and combined premiums for both Part B and Part D absorb about 12% of the average initial Social Security benefit check.
• Medicare's trustees project that premiums for Parts B and D will grow at a faster rate than average Social Security benefits in the future, thus consuming a greater proportion of benefits over time.
• Now a days more of the earnings of Americans go to private health insurance therefore it affects their tacing to social security and medicare tax.
• It has impact like provider limitations, additional costs, and lack of coverage while traveling

ANSWER3: Medical Conditions that leads to poor outcomes of COVID are:

• Cancer
• Chronic kidney disease
• COPD (chronic obstructive pulmonary disease)
• Immunocompromised state (weakened immune system) from solid organ transplant
• Serious heart conditions, such as heart failure, coronary artery disease, or cardiomyopathies
• Sickle cell disease
• Type 2 diabetes mellitus