Final answer:
The Medicare Part B monthly premium is paid to the Centers for Medicare & Medicaid Services (CMS), not to a private insurance company. These premiums contribute to the Supplementary Medical Insurance program, covering about 25% of the program costs for Part B services.
Step-by-step explanation:
The Medicare Part B monthly premium is paid to the Centers for Medicare & Medicaid Services (CMS), which is a federal agency within the United States Department of Health and Human Services (HHS). Medicare Part B is part of the Supplementary Medical Insurance (SMI) program, and it covers physician services, medical tests, and outpatient visits. The premiums collected from beneficiaries cover about 25% of the estimated program costs for the aged, with the remaining cost covered by general revenues.
Therefore, the Medicare Part B monthly premium is not paid to a private insurance company but directly to the government agency responsible for administering the Medicare program. The CMS uses these premiums, along with other funding sources, to manage and finance the costs associated with the healthcare services provided under Part B.