The Health Insurance Trust Fund Essay

897 Words Sep 28th, 2015 4 Pages
What is Medicare? Medicare is federal health insurance for people 65 and older individuals 65 and under with certain disabilities, and any person with End Stage Renal Disease (ESRD) and Lou Gehrig’s disease also known as Amyotrophic Lateral Sclerosis (ALS) (Medicare Matters, n.d.). Medicare is one of the largest federal government programs that provide health care benefits to the elderly. The Centers for Medicare & Medicaid Services is the organization in control of the Medicare program. Three parts of Medicare discussed is how Medicare is financed, those who are eligible for Medicare and the benefits such as differences in premiums and covered services.

Medicare Financed Medicare is paid through two trust funds that are held by the U.S. Treasury, Hospital Insurance (HI) Trust Fund and Supplementary Medical Insurance (SMI) Trust Fund (Medicare.gov, n.d.). Around 2011, Medicare covered 48.7 million individuals with total expenditures of $549.1 billion (Medicare.gov, n.d.). Hospital Insurance Trust Fund is funded by payroll taxes paid by employees, employers, self-employed and other sources such as income taxes paid on Social Security benefits, interest earned and Medicare Part A premiums for those that are not eligible for free Part A (Medicare.gov, n.d.). The HI Trust Fund main source is from payroll taxes, earned interests and paid premiums. Supplementary Medical Insurance (SMI) Trust Fund is funded by funds authorized by Congress, premiums from Medicare Part B…

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