1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS Web98-457 EPWMay 5, 1998Medicare: Financing the Part AHospital Insurance ProgramJennifer OSullivanSpecialist in Social LegislationEducation and Public Welfare DivisionSummaryMedicare is the nationwi
2、de health insurance program for the aged and certaindisabled persons. Medicare consists of two distinct parts Part A (Hospital Insurance(HI) and Part B (Supplementary Medical Insurance (SMI). Part A is financed primarilythrough payroll taxes levied on current workers and their employers. Income from
3、 thesetaxes is credited to the HI trust fund. Part B is financed through a combination ofmonthly premiums paid by current enrollees and general revenues. Income from thesesources is credited to the SMI trust fund. Each fund is overseen by a Board of Trusteeswho make annual reports to Congress concer
4、ning their financial status. The 1998 HIreport, issued April 28, 1998, projected that, under its intermediate assumptions, the HItrust fund would become insolvent in 2008. The SMI fund does not face exhaustionbecause of the way it is financed; however, the trustees are concerned about the rapidgrowt
