Future Medicare beneficiaries likely won't be much better off financially than today's program enrollees because of economic pressures, retiree health benefit trends and the increase in Social Security's full retirement age, according to a Kaiser Family Foundation report.
Many current beneficiaries live on limited incomes in addition to having relatively modest savings and home equity, and it doesn't look like that situation will change during the next 17 years, according to the report. Additionally, Kaiser analysts found significant economic disparities between white beneficiaries and black and Hispanic enrollees. Medicare enrollees' economic situation should factor into policy proposals that could affect older Americans' financial security, according to the report.
Here are some key findings from the report:
1. In 2012, Medicare beneficiaries had a median income of $22,500, an amount expected to increase to just $28,600 in 2030.
2. Median incomes for black and Hispanic beneficiaries are and will probably continue to be much lower than white enrollees' incomes. White beneficiaries had a median income of $24,800 in 2012, while the medians for black and Hispanic enrollees were $15,250 and $13,800 respectively. In 2030, the report's authors predict those medians will be $32,800 for white Medicare beneficiaries.
3. Median savings were $63,100 among all beneficiaries in 2012 and are projected to rise to $108,350 in 2030.
4. In 2030, Kaiser analysts have projected the median savings for white beneficiaries will be four times the median savings for black and Hispanic beneficiaries. White enrollees had a median of $85,950 in savings in 2012, compared with $11,650 for blacks and $12,050 for Hispanics. In 2030, those numbers will be $147,050 for whites, $34,250 for blacks and $35,700 for Hispanic beneficiaries.
5. Median home equity value was $93,850 among all Medicare enrollees who owned homes in 2012. Kaiser analysts projected that number will be $107,100 in 2030.
6. Median home equity values will likely be much higher among white beneficiaries than among black and Hispanic Medicare enrollees in the future. In 2012, median home equity value for white enrollees was an estimated $100,200, compared with $53,650 for blacks and $67,700 for Hispanic beneficiaries. In 2030, the median home equity value is projected to be $119,050 for white beneficiaries, $58,850 for black beneficiaries and $73,650 for Hispanic people covered by Medicare.
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