How is Medicare funded

The 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 (HHS). CMS also monitors Medicaid programs offered by each state.Funding for Medicare comes primarily from general revenues, payroll tax revenues, and premiums paid by beneficiaries. ... Part A, the Hospital Insurance (HI) trust fund, is financed primarily through a dedicated payroll tax of 2.9 percent of earnings paid by employers and their employees (1.45 percent each)

self funding:Medicare collects payroll taxes in the amount of 1.45% from employees and a matching 1.45% from employers. Self-employed workers pay the full 2.9% themselves. ... Part A gets about 87% of its funding for its $261 billion budget from Part A payroll tax withholding.

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