Certified Employee Benefit Specialist (CEBS) – Group Benefits Associate (GBA) / Retirement Plans Associate (RPA) Course 3 Practice Test

Session length

1 / 20

What is the largest source of financing for Medicare Parts B and D?

General funds

Medicare Parts B and D are funded mainly through general revenues from the federal government, not through the payroll taxes that fund Part A. While beneficiaries pay premiums for both Parts B and D and some state subsidies help certain groups, the general fund provides the largest share of financing for these parts. This is why general funds is the best answer: it captures the primary source of funding for Parts B and D beyond beneficiary premiums.

Payroll taxes

Beneficiary premiums

State subsidies

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