Episode #18
Medicare vs Medicaid
11.12.2024
Medicare is funded through payroll taxes, premiums, and general revenues. The Hospital Insurance trust fund, which finances Medicare Part A, relies on payroll taxes paid by employees and employers. Parts B and D are funded through a combination of beneficiary premiums and general revenues. , Medicaid is jointly funded by federal and state governments. The federal government provides a percentage of Medicaid expenditures to states, known as the Federal Medical Assistance Percentage, or FMAP. This percentage varies by state, ranging from 50% to 77% in 2024.
