12 Statistics on Medicare Funding Sources & Expenditure

Here are 12 statistics on Medicare funding sources and areas of Medicare expenditure from the 2009 annual report of the Board of Trustees of the Medicare trust funds, according to the Medicare Payment Advisory Commission.

Medicare funding sources
•    Payroll taxes: 37 percent
•    General fund: 33 percent
•    Contributions from beneficiaries: 22 percent
•    Other: 8 percent

Medicare areas of expenditure
•    Hospitals: 29 percent
•    Medicare Advantage plans: 21 percent
•    Physician services: 13 percent
•    Prescription drug benefits: 10 percent
•    Other Part B covered services: 10 percent
•    Hospice and home health: 6 percent
•    Outpatient hospital: 5 percent
•    Skilled nursing facilities: 5 percent

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