Health Affairs
June 2013
Immigrants Contributed An Estimated $115.2 Billion More To The Medicare Trust Fund Than They Took Out In 2002–09
Leah Zallman, Steffie Woolhandler, David Himmelstein, David Bor and Danny McCormick
Abstract
Many immigrants in
 the United States are working-age taxpayers; few are elderly 
beneficiaries of Medicare. This demographic profile suggests that 
immigrants may be disproportionately subsidizing the Medicare Trust 
Fund, which supports payments to hospitals and institutions under 
Medicare Part A. For immigrants and others, we tabulated Trust Fund 
contributions and withdrawals (that is, Trust Fund expenditures on their
 behalf) using multiple years of data from the Current Population Survey
 and the Medical Expenditure Panel Survey. In 2009 immigrants made 14.7 
percent of Trust Fund contributions but accounted for only 7.9 percent 
of its expenditures—a net surplus of $13.8 billion. In contrast, US-born
 people generated a $30.9 billion deficit. Immigrants generated 
surpluses of $11.1–$17.2 billion per year between 2002 and 2009, 
resulting in a cumulative surplus of $115.2 billion. Most of the surplus
 from immigrants was contributed by noncitizens and was a result of the 
high proportion of working-age taxpayers in this group. Policies that 
restrict immigration may deplete Medicare’s financial resources.
Conclusion
Having ourselves
 witnessed immigrants dying needlessly because of lack of health care, 
we (and many of our colleagues) are motivated by the belief that all 
patients have a human right to health care. But economic 
concerns—including the worry that immigrants are driving up US health 
care costs—have often dominated the debate over immigration. Our data 
offer a new perspective on these economic concerns.
Policies that reduce immigration would almost 
certainly weaken Medicare’s financial health, while an increasing flow 
of immigrants might bolster its sustainability. Because Social 
Security’s eligibility criteria and payroll tax–based funding closely 
track those of Medicare, our findings support the argument that 
immigration helps sustain Social Security.
Providing a path to citizenship for currently 
undocumented immigrants would affect Medicare’s finances in multiple 
ways. It would likely increase payroll tax collections by reducing 
immigrants’ “off the books” employment and removing barriers that keep 
them out of higher-paying jobs. But in the long term it would probably 
increase the number of immigrants eligible for Medicare, and hence 
expenditures on their behalf.
However, the age structure of the immigrant 
population is far more important than either of these factors. 
Encouraging a steady flow of young immigrants would help offset the 
aging of the US population and the health care financing challenge that 
it presents.
Comment:  Everyone should have health care when needed. Immigrants 
are taxed to support our Medicare program, yet many of them are 
prohibited from participating in Medicare, Medicaid, and the state 
insurance exchanges currently under development. Not fair.
We should have a universal health care financing 
system - covering all of us - in which we pay in, based on ability, and 
draw out, based on medical need. As long as immigrants are an integral 
part of our society, they should be included on the same basis.
 
 













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