How is Medicare Part B financed?

Medicare Part B is financed through a combination of premiums paid by beneficiaries and federal revenues. Beneficiaries pay monthly premiums, which are typically deducted from their Social Security benefits. This revenue stream directly supports the funding of Part B services, which mainly covers outpatient care, preventive services, and certain medical supplies.

In addition to these premiums, federal revenues are also a significant source of funding. This includes general tax revenues collected from the federal government's budget, which help cover the costs of care for beneficiaries who may not be able to pay the premiums or require more extensive medical services.

This dual funding mechanism ensures that Medicare Part B remains accessible to a wide range of beneficiaries, providing essential healthcare services without significantly burdening any single source of funding.