A Primer on Medicare

(Source – Department of Health and Human Services (HHS, via helpingamericansfindhelp.org))

U.S. Medicare is funded by 2 trust funds, both held by the Department of the Treasury:

  1. Medicare Hospital Insurance (HI) Trust Fund – $205.4 billion as of 12/31/2013  funded from: payroll taxes, interest earned from HI Trust Fund and paid premiums for Medicare Part A used for: Medicare Part A benefits of the aged and disabled – hospital, nursing facility, home health and hospice care
  2. Medicare Supplementary Medical Insurance (SMI) Trust Fund – Part B had 74.1 billion and Part D had 1.0 billion as of 12/31/2013 funded from: general revenue transfers, insurance premiums, interest earned, and contributions from States used for: Medicare Part B benefits – doctor services and outpatient hospital care, lab tests and medical equipment Medicare Part D prescription coverage – optional benefits for prescription drugs to all with Medicare

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