Medicare (Hospital Insurance)

  • Medicare Part A (Hospital Insurance) services are funded through a payroll tax. • That tax is paid by people who are still working and economically productive. • The people who receive the benefits are older, generally retired (or disabled), and thus economically "non-productive." • Thus, with a rapidly aging population, there are rapidly growing numbers of Medicare beneficiaries whose services are paid for by generally younger people who are still working (and whose ranks are not growing nearly as fast as their seniors). • Is that fair? Is it sustainable? • What, if a anything, should be done about it?