A 2.9 percent payroll tax (1.45 percent levied on both the employee and the employer) imposed on current workers is used to finance the
A) Medicaid program that provides healthcare for the poor.
B) hospitalization costs of Medicare beneficiaries.
C) cost of physician services supplied to the elderly.
D) healthcare costs of both the elderly and the poor.

Question

Quizplus · Accepted Answer

The 2.9 percent payroll tax is specifically used to fund Medicare Part A, which covers hospitalization costs for Medicare beneficiaries.

A 29 Percent Payroll Tax (1