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    Budget Explainer: Medicare

    Medicare was signed into law by Lyndon B. Johnson in 1965 to provide health insurance to people aged 65 and older. Since then, the program has been expanded to serve the blind and disabled.

    One of the biggest misconceptions about Medicare is that it is self-financed by current beneficiaries through premiums and by future beneficiaries through payroll taxes. In fact, payroll taxes and premiums together only cover about half of the program’s cost. The rest is financed largely by general federal revenues.


    http://www.pgpf.org/budget-basics/budget-explainer-medicare

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