Where Is Medicare Funded From? 
That is an excellent question !! Medicare is managed by a department of the Federal Government called the CMS - the Centers for Medicare and Medicaid Services . It falls under the wing of the Department of Health and Human Services , and it manages the trust funds that fuel Medicare and Medicaid . There are two trust funds - one that is funded by payroll taxes , and by other taxes , investments , and earned interest . The other one is funded by Congress , premiums paid on Medicare B and D , investments and interest earned . Congressional cuts to the programs have hurt one fund , and the one that is funded by the payroll taxes is in danger of becoming underfunded within the next 20 years -LRB- 2029 , last estimate , with the additional funds culled from excesses in the program recaptured by the Affordable Care Act , AKA Obamacare - without them , 2024 -RRB- because the workforce is steadily shrinking -LRB- less collected tax -RRB- as the number of senior citizens eligible for Medicare and Medicaid increases -LRB- approximately 10,000 people turn 65 daily -RRB- . It does n't help that the Government in the past has raided the Social Security and Medicare trusts to fund other things that they felt were more important . I hope that that answers your question , if you would like more detail give me a buzz , and I 'll give you more . Thank you for asking ! 