If most employees, employers, and people who are self-employed contribute to a trust fund and the proceeds cover the costs of health.
What are the Medicare Trust Funds?
Medicare is paid for through two trust fund accounts held by the U.S. Treasury. These funds can only be used for Medicare.
1. Hospital Insurance (HI) Trust Fund
What does it pay for?
¦¦Medicare Part A (Hospital Insurance) benefits, such as inpatient hospital care, skilled nursing facility care,
home health care, and hospice care
¦¦Medicare Program administration, such as costs for paying benefits, collecting Medicare taxes, and combating fraud and abuse
How is it funded?
¦¦Payroll taxes paid by most employees, employers,
and people who are self-employed
¦¦Other sources, such as income taxes paid on Social Security benefits, interest earned on the trust fund investments, and Part A premiums from people who aren’t eligible for premium-free Part A |
