Medicare is a health insurance program administered by the United States government and funded by Social Security through payroll taxes. The Social Security Act of 1965 was signed into law by President Johnson in 1965. The Act provided for medicare benefits for those over 65, as well as those that have special circumstances, such as those that are on disability and have an ongoing illness.
Payroll taxes, which are imposed on every working American, as well as their employer, fund a portion of medicare. Those that are self-employed, pay both portions of the payroll tax. The taxes are paid as a percentage of salary, with no cap for a maximum amount.
The center for Medicare and Medicaid services, which is associated with the Department of health and human services, administers the medicare benefits which provide insurance to certain individuals, including those over 65.
There are some individuals below the age of 65 that are eligible for medicare. The Social Security Administration determines whether or not individuals are eligible for medicare.
The administration must release annual reports to allow the public to be aware of the financial status of the medicare program. The statements include a determination of the financial health of the program, which may influence who is eligible for medicare.
The medicare program is utilized to ensure that aging Americans have access to health care. By paying their payroll tax, they are making payments to protect their medical health in the future.