Question

Describe the financing of Medicare Part A, Medicare Part B, Medicare Part D, and Medicaid.

Answer 1

Financing of Medicare Part A

The Medicare part A financing for the hospital insurance program is primarily done by mandatory payroll deduction that is the “FICA tax”. FICA stands for “The Federal Insurance Contribution act” and it is a US federal payroll contribution directed towards both employees and employers in order to fund the social security and Medicare. Currently, the FICA tax is accounted 1.45% of earnings paid by each employee and their employer.

The money is paid into a trust fund that is an uncommon record in the U.S. Treasury. The trust subsidize likewise gets wage from a bit of salary charges imposed on Social Security benefits paid to high wage recipients, premiums from the individuals who are not generally entitled Medicare advantages and enlist willfully, and premium income. The expenses paid every year are utilized fundamentally to pay benefits for current recipients. The healing center protection assets can be utilized just to pay for the Medicare Part A.

Financing of Medicare Part B

The Supplemental Medical Insurance Program is financed through premiums which are normally deducted from the Social Security advantage checks of those selected in Part B. In 1998, this sum was $121.80 every month. Be that as it may, anybody on Social Security in 2015 is "held innocuous" (from the way that Social Security did not ascend in 2016) and pays just the $104.90 premium withheld month to month in 2015, with pay weighted extra sur charges starting for those gaining more than $85,000 per individual. Different wellsprings of income incorporate commitments from general income of the U.S. Treasury. Recipient premiums are at present set at a level that spreads 25% of the normal consumptions for matured recipients.

Financing of Medicare Part D

Medicare Part D Prescription Drug Plans under the Medicare Modernization Act of 2003.The program finances the cost of physician recommended medicate protection for all Medicare recipients. As indicated by the CBO( Congressional Budget Office), Medicare Part D is the most noteworthy development of the Medicare program since it was made by Congress in 1965.

Financing of Medicaid

The Medicaid program is jointly funded by the states and federal government. Basically, federal government distributes the funds among all the states in a specific percentage known as FMAP (Federal Medical Assistance Percentage).