Medicare Part A and Part B are funded through different sources. Here's a breakdown of who pays for each:
Medicare Part A:
Medicare Part A, also known as hospital insurance, is primarily funded through payroll taxes. Most individuals who have worked and paid Medicare taxes for at least 10 years are eligible for premium-free Part A coverage. This means that the individual or their spouse has paid Medicare taxes while working. If an individual does not qualify for premium-free Part A, they may be able to purchase it.
Medicare Part B:
Medicare Part B, also known as medical insurance, is funded through a combination of general revenues and monthly premiums paid by beneficiaries. The standard monthly premium for Part B is set by the Centers for Medicare & Medicaid Services (CMS) and can vary based on income. In addition to the premium, beneficiaries may also be responsible for deductibles, coinsurance, and copayments.
It's important to note that while Medicare Part A and Part B have different funding sources, they are both part of the overall Medicare program. If you have further questions or need more information, please let me know!