A Primer on Medicare: Key Facts About the Medicare Program and the People it Covers - How is Medicare financed and what are Medicare's future financing challenges?

Funding for Medicare comes primarily from general revenues, payroll tax revenues, and premiums paid by beneficiaries. Other sources include taxes on Social Security benefits, payments from states, and interest. Medicare is funded as follows (Figure 29): Part A, the Hospital Insurance (HI) trust fund, is financed primarily through a dedicated payroll tax of 2.9 percentMore