Who Pays for the Insurance?
Both workers and their employers pay for the workers' insurance. Self-employed persons pay their own social security contributions annually along with their income tax. The rates include the cost of Medicare hospital insurance. The contribution and benefit base is $57,600 for 1993 for retirement, survivor and disability coverage, and $135,000 for 1993 for Medicare coverage, and will increase automatically in future years as earnings levels rise. The contribution rate schedules under present law are shown in the table Social Security Contribution and Rate Schedule in this section.
The separate payroll contribution to finance hospital insurance is placed in a separate trust fund in the U.S. Treasury. In addition, the medical insurance premiums, currently $46.10 a month in 1995, and the government's shares go into another separate trust fund.
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