How is the Medicare Part B program funded?

Medicare Part B is funded through a combination of premiums paid by beneficiaries and general revenue from the federal government. Beneficiaries typically pay a monthly premium to access Part B services, which cover outpatient care, preventive services, and some home health services. The premiums collected contribute significantly to the financing of the program.

Additionally, the federal government allocates general tax revenues to support the program, as the income from premiums alone isn't sufficient to cover all Part B expenses. This mixed funding approach allows Medicare Part B to provide the necessary healthcare coverage for eligible individuals, primarily those aged 65 and older or with certain disabilities.

The other options do not accurately capture the funding mechanism for Medicare Part B. For example, while taxes from high-income individuals contribute to the broader Medicare system, they do not specifically fund Part B. Similarly, Medicare is not exclusively funded through federal income taxes or donations from private organizations, making the combination of beneficiary premiums and federal support the correct explanation.