Medicare Trust Fund

The Medicare Trust Fund is a government account that helps pay for the Medicare program, which provides health insurance mainly for people aged 65 and older, as well as some younger individuals with disabilities. It receives funding primarily from payroll taxes paid by workers and their employers. This money is used to cover hospital services (Part A) and, to a lesser extent, other services. The Trust Fund is crucial for ensuring that Medicare can continue to provide essential health services to millions of Americans, although it faces financial challenges due to an aging population and rising healthcare costs.