Money & budgets

Medicare

Federal health insurance for people 65 and older and for some younger people with disabilities. Four parts: hospital, medical, private plans, and drugs.

In full

Part A covers hospital care and is funded by payroll taxes through its own trust fund; Part B covers outpatient care and is funded largely by general revenue and premiums; Part C is private plans that deliver the same benefits; Part D covers prescription drugs. Medicare is mandatory spending, so its cost is driven by eligibility and health prices rather than by annual votes.

Where to go next

Medicaid mandatory spending trust fund payroll tax

Written from U.S. Treasury, Fiscal Data

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