Social Security and Medical Insurance

Social Security: an insurance OASDI (Old Age, Survivors, and Disability Insurance), paid by income tax. Eligibility to benefit: working for >10 years with income (not passive income) about >4k and pay income tax every year. There is not much difference between rich or poor. There is a COLAS (cost of living adjustments) every Jan. For those born after 1960, if start to withdraw at age 62 75%, age 67 100% and age 70 125%.

Never worked couple can withdraw 50%, the same as the divorced with 10 years marriage and never re-married.

Tip: if couple has different level of income, start to withdraw the lower income one’s SS.

Healthy System: HSO; HMO (more preventative, need referrer); PPO (most expensive). Each has Gold, Silver and Bronze plans with different premium and copay.

HSA: Take advantage of this as it is the only account no tax and no age limit to withdraw but only for medical uses. It also can be used for long term care. Each year contribution about $3650 (this year) for individual. Eligibility: individual deductible >$1400ish (healthy insurance of silver plan might do).

Medicare: Eligibility: >65 years old and worked for >10 years paying tax.

Part A: free, cover hospital cost ; Part B: about $144/month, cover doctors, labs etc; Part C: medical advantage, private organizations support. it required A+B . there are free and paid two level. cover vision, dental etc. Part D: cover drugs. Medicare covers long term care up to 100 days.

Medicaid: For every green card and citizen with income < $1400ish.

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