Your trusted guide to Medicare

Call for a quote
Call for quote: 1-800-519-7060

How is Medicare funded?

Q: How is Medicare funded?

How well are you prepared to enroll in Medicare? Take the Medicare Smarts quiz.

How well are you prepared to enroll in Medicare? Click the graphic to take our brief quiz.

A: 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.

Find affordable health plans

Since 2008, we’ve helped more than 16 million people.

(Step 1 of 2)

Related terms

Medicare Advantage

Medicare Part A

Medicare Part B

Medicare Part D

Related topics