Institute: ONC | Component: 1 | Unit: 4 | Lecture: e | Slide: 7
Institute:Office of National Coordinator (ONC) Workforce Training Curriculum
Component:Introduction to Health Care and Public Health in the U.S.
Unit:Financing Health Care - Part 1
Lecture:The Government as an Insurance Payor
Slide content:Medicare Created by Social Security Act of 1965 Determines Medicare eligibility Processes premium payments FICA - Financed by payroll taxes 1.45% from employee + 1.45% from employer 2.9 % deduction Pays for Medicare Part A (hospital insurance) 7
Slide notes:Medicare was created by the Social Security Act of 1965 as an amendment to existing Social Security legislation. The Social Security Administration determines Medicare eligibility and processes premium payments. The Federal Insurance Contributions Act, or FICA, mandates the collection of payroll taxes to finance Medicare. If employed, the abbreviation FICA on a paycheck refers to this payroll tax deducted from employees gross wages. Employees pay one-point-four-five percent of their gross pay into Medicare, which is matched by their employer for a total of two-point-nine percent. This FICA payment goes to fund Medicare Part A, which is the hospital insurance part of Medicare. The next slides discuss all four parts of Medicare. 7