Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Question about Obamacare/medicare changes
Old 10-28-2012, 05:01 PM   #1
Dryer sheet wannabe
 
Join Date: Oct 2012
Posts: 20
Question about Obamacare/medicare changes

With medicare, you've always had to have so many quarters that you paid in to be eligible to draw it when you hit 65. Will it still be the same way under Obamacare, or will all that change?

As unbelievable as it sounds, my former employer did not withdraw medicare from my check because we were covered by a pension system. It was only for persons hired in a certain few years they did this, but I got caught in it. I even requested to have them start and one point, and they said it was not possible. I had some quarters already from HS and college jobs; I am currently "self employed" at ranching. I know there is a way I can pay in or buy quarters toward Medicare; or just get another job until I achieve the amount needed.

Just wondering which way to plan.
__________________

__________________
csgraff is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-28-2012, 05:22 PM   #2
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
See if this helps.
How Do I Find Out How Many Quarters I Have Earned For Medicare?
I wonder how your employer avoided the FICA requirements.
__________________

__________________
imoldernu is offline   Reply With Quote
Old 10-28-2012, 05:43 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
That does sound unbelievable ( and illegal ). All wages are subject to FICA, with some exception. It has nothing to do with being covered by a pension. If you are self employed you have to pay FICA. Something doesn't sound right.

Social Security Wages - Wages Subject to FICA Tax
__________________
rbmrtn is online now   Reply With Quote
Old 10-28-2012, 06:20 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,369
I imagine poster worked for a public entity. I know in my state any public school personnel who had been hired prior to 1989, I believe, did not pay into Medicare or Social Security (SSN is still not deducted). If they changed jobs outside of that entity (a school in my place) after 1989, they were integrated into the system. My first few years I did not pay either.
__________________
Mulligan is offline   Reply With Quote
Old 10-28-2012, 06:31 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
I doubt that anything would have changed -- in this area -- with the Affordable Healthcare Act but that is only a guess. Good question, however, and worthy of further investigation.
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 10-28-2012, 06:36 PM   #6
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
found this:
Quote:
The major exceptions are most civilian federal government employees hired before 1984 (they are covered by and pay the 1.45% tax for Medicare but not for Social Security retirement benefits) and about 25% of state and local government employees with a pension plan. There are also other limited exceptions that apply (e.g., some on-campus college student employment).
Who is exempt from paying the FICA tax in the United States? - eXtension
__________________
imoldernu is offline   Reply With Quote
Old 10-28-2012, 06:37 PM   #7
Dryer sheet wannabe
 
Join Date: Oct 2012
Posts: 20
Quote:
Originally Posted by Mulligan View Post
I imagine poster worked for a public entity. I know in my state any public school personnel who had been hired prior to 1989, I believe, did not pay into Medicare or Social Security (SSN is still not deducted). If they changed jobs outside of that entity (a school in my place) after 1989, they were integrated into the system. My first few years I did not pay either.
You are right. I worked for the Tulsa Police Dept for 25 years. Funny that I could go thru that, and not be eligible for Medicare. I believe this situation only applied to employees hired from about 1979-1985. I am also not eligible for SS. (before you ask, no we get no medical at all. We also pay into our pensions at 7.5%, and draw only 50% after 20 years.)
I've received my SS statements, that tell me I need something like 16 more quarters to be eligible for Medicare. Just wonder if all that is over with now, or what?

I can't imagine how they expect the elderly or poor educated to be able to navigate this system.
__________________
csgraff is offline   Reply With Quote
Old 10-28-2012, 06:51 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,369
Quote:
Originally Posted by csgraff

You are right. I worked for the Tulsa Police Dept for 25 years. Funny that I could go thru that, and not be eligible for Medicare. I believe this situation only applied to employees hired from about 1979-1985. I am also not eligible for SS. (before you ask, no we get no medical at all. We also pay into our pensions at 7.5%, and draw only 50% after 20 years.)
I've received my SS statements, that tell me I need something like 16 more quarters to be eligible for Medicare. Just wonder if all that is over with now, or what?

I can't imagine how they expect the elderly or poor educated to be able to navigate this system.
I am in your same situation in regards to SS. When I retired, there were still a few working who were caught in the trap you were if they didn't get enough summer jobs to get the credits. However, they have the option to continue staying on the group plan in retirement. If I read you correctly, you do not have that option. That certainly puts you in a bad spot. I never understood how a government could implement SS and Medicare laws, and then allow public entities to opt out.
__________________
Mulligan is offline   Reply With Quote
Old 10-28-2012, 07:43 PM   #9
Dryer sheet wannabe
 
Join Date: Oct 2012
Posts: 20
Quote:
Originally Posted by Mulligan View Post
I am in your same situation in regards to SS. When I retired, there were still a few working who were caught in the trap you were if they didn't get enough summer jobs to get the credits. However, they have the option to continue staying on the group plan in retirement. If I read you correctly, you do not have that option. That certainly puts you in a bad spot. I never understood how a government could implement SS and Medicare laws, and then allow public entities to opt out.
I can stay with the insurance, as long as I want to pay for it. Its not a great deal, or anything. By the time I'm 65, it would be unaffordable, I think. Already very expensive, and has a $1,000 deductible.
So, I'm paying for something I receive nothing back from, unless something bad happens.
__________________
csgraff is offline   Reply With Quote
Old 10-28-2012, 07:55 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Quote:
Originally Posted by csgraff View Post
Already very expensive, and has a $1,000 deductible.
So, I'm paying for something I receive nothing back from, unless something bad happens.
Not to worry, an infected hangnail should blow right by that deductible.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-28-2012, 08:10 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Can you file taxes as self employed and pay SS and Medicare taxes? Not sure how that works with ranching, but you might be able to supplement with something else if that doesn't qualify. Seems like all you need is qualifying quarters, not big earnings.
__________________
Animorph is offline   Reply With Quote
Old 10-28-2012, 08:29 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
Quote:
Originally Posted by csgraff View Post
So, I'm paying for something I receive nothing back from, unless something bad happens.
That's basically the definition of insurance. Screwed if you have it, screwed if need it and don't have. What other industry makes money by denying people service they have paid for.

I just assumed when you said employer it was a private entity. That's tough situation, if you can stay and qualify for medicare that sounds like the way to go. Can't imagine what the premium would be for a 65 yr old.
__________________
rbmrtn is online now   Reply With Quote
Old 10-28-2012, 10:26 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Quote:
Originally Posted by Animorph View Post
Can you file taxes as self employed and pay SS and Medicare taxes? Not sure how that works with ranching, but you might be able to supplement with something else if that doesn't qualify. Seems like all you need is qualifying quarters, not big earnings.
It may be different now, but when I paid attention to this, it took $400 of earnings per quarter to get credit for that quarter. I believe there is also an annual hurdle, so that if you mainly have earnings in one quarter you still can be OK. It also used to be true and may still be true, that you are allowed to ignore your expenses and just report you gross receipts, up to this minimum amount. This is/was true whether you are filing a schedule C or a schedule F.

The code seemed to be bending over backwards to allow people an easy route to qualifying.

Well worth your while to read up on this.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-29-2012, 05:46 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,695
IIRC Medicare is available to everyone over 65 regarless of if you paid into it. Or am I wrong (again)?
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 10-29-2012, 06:53 AM   #15
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
You need 40 quarters of contributions from employment, correct ?
Quote:
Originally Posted by marko View Post
IIRC Medicare is available to everyone over 65 regarless of if you paid into it. Or am I wrong (again)?
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 10-29-2012, 07:18 AM   #16
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,407
US citizens are automatically eligible for Medicare when they reach age 65 if they have lived in the US for the previous 5 years. If they did not pay the payroll tax or do not meet Social Security eligibility, they need to pay Medicare Part A premiums. This is not affected by Obamacare - PPACA.
__________________
MichaelB is online now   Reply With Quote
Old 10-29-2012, 07:28 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Most people age 65 or older who are citizens or permanent residents of the United States are eligible for free Medicare hospital insurance (Part A). You are eligible at age 65 if:

Big "If" in the case of the current conversation.
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 10-29-2012, 08:54 AM   #18
Dryer sheet wannabe
 
Join Date: Oct 2012
Posts: 20
Quote:
Originally Posted by MichaelB View Post
US citizens are automatically eligible for Medicare when they reach age 65 if they have lived in the US for the previous 5 years. If they did not pay the payroll tax or do not meet Social Security eligibility, they need to pay Medicare Part A premiums. This is not affected by Obamacare - PPACA.
This is kinda what I was looking for, and expected. I was leery of the overload of data if I searched much on this, but did find this fairly easy. Not the best situation, but its something:


Most Medicare enrollees do not pay a monthly Part A premium, because they (or a spouse) have had 40 or more quarters (10 years) in which they paid Federal Insurance Contributions Act (FICA) taxes. Medicare-eligible persons who do not have 40 or more quarters of Medicare-covered employment may purchase Part A for a monthly premium ranging from $248 to $450. All Part B enrollees must pay a monthly premium ranging from $96 to $238, based on income.

end.
__________________
csgraff is offline   Reply With Quote
Old 10-29-2012, 09:55 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,251
Quote:
Originally Posted by Mulligan View Post
I am in your same situation in regards to SS. When I retired, there were still a few working who were caught in the trap you were if they didn't get enough summer jobs to get the credits. However, they have the option to continue staying on the group plan in retirement. If I read you correctly, you do not have that option. That certainly puts you in a bad spot. I never understood how a government could implement SS and Medicare laws, and then allow public entities to opt out.

From what I was taught.... there is that pesky 10th amendment.... the fed gvmt can not tell the states what to do with their employees...
__________________
Texas Proud is offline   Reply With Quote
Old 10-29-2012, 11:11 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
When you file your Federal tax return for your ranching income, don't you pay "self-employment" tax? That's Line 56 on the 1040 and comes from Schedule SE. Your self employment tax is for Social Security and Medicare, both the employer and employee portions. That's how you get credit for self employment.

Or is this all different for ranching income? How long have you been doing the ranching?

Also, if you are married and your spouse has enough credits for Medicare, I think that covers you, too.

DH worked in public employment. He paid into a pension instead of Social Security but Medicare was always withheld so he'll be covered. I checked his SS statement and he's eligible for Medicare.
__________________

__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 09:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.