Report Finds Gap Between Medicare Taxes, Benefits

The amount U.S. residents pay in Medicare taxes falls short of covering the full value of benefits Medicare beneficiaries receive, according to a recent analysis by the Urban Institute. The report found that a couple whose annual income is $89,000 will have paid $114,000 in Medicare payroll taxes during their working years and can expect to receive $355,000 in medical services upon retiring in 2011.

• "Analysis Illustrates Big Gap Between Medicare Taxes and Benefits" (Alonso-Zaldivar, AP/Washington Post, 1/2).