For the Medicare program to sustain 67.4 million beneficiaries, the funding reliant on a mix of government contributions, payroll taxes, and premiums is a critical system.
The Medicare tax, a significant contributor, is a 2.9% tax on earnings paid by current U.S. workers to primarily support Medicare Part A, totaling about $368 billion in 2023.
Employees and employers are mandated to contribute equally to Medicare tax at a combined rate of 2.9%—1.45% from employees and 1.45% from employers.
Self-employed individuals contribute through estimated taxes, including a self-employment tax of 15.3%, showcasing varied funding obligations based on employment status.
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