Center on Budget and Policy Priorities February 10, 2025
Claims by some policymakers that the Medicare program is nearing “bankruptcy” are highly misleading.[1] Although Medicare faces financing challenges, the program is not on the verge of bankruptcy or ceasing to operate. Such claims demonstrate misunderstanding (or misrepresentation) of Medicare’s finances.
Hospital Insurance
Medicare’s Hospital Insurance (HI) program — Part A of Medicare — covers inpatient hospital services and post-acute care in nursing homes and rehabilitation facilities. It obtains about 90 percent of its financing from payroll taxes. Employees and their employers each pay 1.45 percent of total wages, and self-employed people pay an equivalent 2.9 percent of their self-employment income. Taxpayers with incomes over $200,000 for singles and $250,000 for couples pay an additional 0.9 percent of wages and...
Today's Sponsors
Today's Sponsor