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Medicare: Financing the Part A Hospital Insurance Program (CRS Report for Congress)

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Release Date May 5, 1998
Report Number 98-457
Report Type Report
Authors Jennifer O'Sullivan, Education and Public Welfare Division
Source Agency Congressional Research Service
Summary:

This report discusses Medicare, which consists of two distinct parts — Part A (Hospital Insurance (HI)) and Part B (Supplementary Medical Insurance (SMI)). Part A is financed primarily through payroll taxes levied on current workers and their employers. Income from these taxes is credited to the HI trust fund. Part B is financed through a combination of monthly premiums paid by current enrollees and general revenues. Income from these sources is credited to the SMI trust fund.