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Message: <blockquote data-quote="Jim Simmers" data-source="post: 390646" data-attributes="member: 2674">Nope, Medicare is taking monies already paid in and paying a portion of it to insurance companies and keeping a % of it for administrative costs and what they must cover like end stage renal and hospice. So, let’s say out of all the Medicare money you paid in all your working years plus the part B premium you pay every month. When a member of Medicare enrolls in a Medicare Advantage plan, say 80% of the money on a per member per month basis is paid to the insurance company. Then out of that money, say about 80% must go towards paying claims, administrative costs and benefits. Administration costs include the salaries of all company employees, agent commissions and then all 3rd party fees associated with doctors, hospitals, clinics, pharmaceutical companies and anyone else who might have a contract with that insurer. Insurance companies are only allowed to make an 8% profit. So to put it into numbers; say $1000 per month is credited to every social security number. Medicare hangs on to $200, the carrier gets $800 to do the feds work. The way I look at it is this way your Medicare $ goes for you and not what your congressman wants to replace with an IOU. It intake he a little while to grasp being it is another social program and I am a staunch conservative. But I understand how these things work.</blockquote>