How is Medicare Funded? - Key Sources Explained

Medicare, the federal health insurance program for Americans aged 65 and older, is primarily funded by two main sources:

• 'Payroll taxes': A portion of every worker's paycheck goes towards funding Medicare. This is the largest contributor to the program.
• 'Premiums': Medicare beneficiaries pay monthly premiums for coverage, contributing to the overall cost of the program.

While 'Medicaid' may assist in covering some costs for dual-eligible individuals, it's not a primary funding source for Medicare itself. Similarly, premiums from younger individuals enrolled in Medicare due to disability are a relatively minor source of funding compared to payroll taxes and standard premiums.