Your Right DOC I think I slept in and confused two issues. What I should have said is that we pay taxes on our Social Security income because our private income exceeds a certain level.
Our Medicare is coupled with a Private Supplement plan which extends coverage in those areas where Medicare drops out. Like longer hospital stays etc.
We also have a drug plan that kicks in after we reach a certain out of pocket level.
These are backup plans that kick in if a serious illness occurs. Its worth it to us to have affordable supplements.
Private insurance companies compete in their pricing to provide a regulated standard level of coverage and some offer additional services. It is obvious those plans are profitable as every year we get a dozen offers from insurance companies.
What medicare does is to set up what it will pay for health care, surgery etc.
If the private practice takes medicare patients they have to accept the cost that medicare establishes. The good of this system is that more elderly people can get the treatment they need. Other wise if it wasn't regulated many more people would have shorter lives.
The medical community gets a ton more business.