HLTH 385 Lecture 10: Lecture 10

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Part A Hospital Insurance trust fund, financed primarily through deducted
payroll tax
o 2.9% tax (<65) -> Part A trust fund -> healthcare (>65)
% tax is closely linked to the rate of change in wages, medical spending on
hospital care and healthcare spending is liked to the rate of growth in
healthcare spending
o More money is flowing out faster than it is flowing in
Part A trust fun is eventually going to run out of money - that's what the trend
is showing
o Other sources of funding is coming into play
The part A trust funds is one of the biggest issues with medicare
Part B funding mostly comes from general revenue
o Taxes- income taxes, etc.
Same issue in part B that's happening in part A- rate of growth in spending is
exceeding the funding that is available
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