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Showing posts with the label medicaid spend

Medicare Vs. Medicaid Funding | Government Healthcare Financing

 Medicare and Medicaid are both government-funded healthcare programs in the U.S., but they are funded and administered differently. Medicare Funding (Federal Program) Medicare is a federal program that provides healthcare coverage primarily for individuals aged 65 and older, as well as some younger people with disabilities. It is funded mainly through: Payroll Taxes (FICA & SECA) Employees and employers each pay 1.45% of wages for Medicare (2.9% total). Self-employed individuals pay 2.9% through SECA. High-income earners pay an additional 0.9% Medicare surtax on earnings over $200,000 (individual) or $250,000 (married filing jointly). General Revenue (Federal Budget) Congress allocates funds from income taxes and other federal revenue sources. Medicare Premiums & Beneficiary Payments Parts B (medical insurance) and D (prescription drug coverage) are funded by monthly premiums paid by enrollees. Part A (hospital insurance) is mostly cov...