Health Affairs: Immigrants heavily subsidize Medicare

Contrary to some perceptions that immigrants drain money from government programs, when it comes to Medicare, immigrants are in fact contributing billions of dollars more than they use, according to a Health Affairs study set to appear in the June issue.

From 2002 to 2009, immigrants put approximately $115.6 billion more into the Medicare Trust Fund than they took out, the authors found—which essentially means they are footing much of the bill for American-born beneficiaries.

"Immigrants generate a surplus for Medicare primarily because so many of them are working age adults. That group has a high labor-force participation rate—a combination that generates large payroll tax payments," according to the authors of the study. "[E]conomic 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."