How is Medicare Part B primarily funded?

Medicare Part B is primarily funded by premiums paid through Social Security deductions, making this the correct choice. This program is designed to provide outpatient care, preventive services, and other essential medical services.

Beneficiaries are required to pay a monthly premium for Part B, which is typically deducted directly from their Social Security benefits. This linkage ensures a stable funding source from those who are enrolled, and the amount may vary based on income. In addition to premiums, the federal government contributes general revenue to help cover the costs of the services provided under Medicare Part B, but the initial funding mechanism relies heavily on these premiums.

Understanding this funding structure is crucial, as it underlines the importance of beneficiaries’ participation in the program and showcases how Medicare is financed primarily through beneficiaries rather than employer contributions or state budgets.