How is Medicare primarily funded?

Medicare is primarily funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA). This funding mechanism involves contributions from both employees and employers to support the program. Workers earn "credit" toward Medicare eligibility by paying these taxes during their working years, ensuring they have access to necessary health care services when they reach retirement age or become disabled.

Additionally, a portion of Medicare's funding comes from premiums paid by beneficiaries for certain parts of Medicare, but this is supplementary to the primary funding source. Unlike some health programs that may rely on state funding or direct appropriations from Congress, Medicare is specifically designed to be funded through these payroll taxes, making it a self-sustaining program that operates on funds generated from American workers.