frequently-asked
medicare questions

A collection of frequently asked questions about Medicare – answered by the editors of healthinsurance.org™ and guest experts on Medicare issues.



How is Medicare funded?

Medicare Part A is funded primarily by payroll taxes, which end up in the Hospital Insurance Trust Fund. Medicare Part B revenue comes from both general revenues and premiums paid by Medicare beneficiaries. Medicare Advantage (Part C) is also funded by general revenues and by beneficiary premiums, while the Medicare Part D prescription drug plan is funded by general revenues, premiums and state payments.





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about the medicare resource center

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