Question

Where does the primary funding for Medicare Part A come from?

a) General taxation
b) Payroll taxes
c) Premiums from beneficiaries
d) Donations

Answer 1

The primary funding for Medicare Part A comes from payroll taxes, which are contributions shared equally between employers and workers.

Step-by-step explanation:

The primary funding for Medicare Part A comes from payroll taxes. Medicare Part A, which covers hospital insurance, is principally funded through a dedicated payroll tax of 2.9% of earnings. This tax is shared equally between employers and workers. The funds collected through payroll taxes are used to provide hospital coverage for individuals who are eligible for Social Security benefits.

While beneficiaries are also responsible for deductibles and copayments, there are no limits on the total costs people can incur for hospital-related services. Additionally, the sustainability of Medicare Part A is closely tied to the demographics of the workforce and the overall economy, as it relies on current workers' contributions to fund the healthcare needs of retirees.

Answer 2

Medicare Part A is primarily funded through payroll taxes that are collected from both employees and employers. The primary funding for Medicare Part A comes from payroll taxes. Individuals who are employed have a portion of their earnings deducted, and their employers match this contribution to fund.

Step-by-step explanation:

The primary funding for Medicare Part A comes from payroll taxes. Individuals who are employed have a portion of their earnings deducted, and their employers match this contribution to fund Part A, which covers hospital charges for eligible beneficiaries, typically those over 65 years of age or certain individuals with disabilities. In addition to payroll taxes, beneficiaries are responsible for paying deductibles and copayments for hospital-related services, but there are no premiums specifically for Part A, and no funding comes from general taxation or donations.

he Centers for Medicare & Medicaid Services (CMS) is the federal agency that runs the Medicare Program. CMS is a branch of the Department of Health and Human Services.

CMS also monitors Medicaid programs offered by each state.

In 2017, Medicare covered over 58 million people. Total expenditures in 2017 were $705.9 billion. This money comes from the Medicare Trust Funds.