A plan President Trump announced Thursday to send millions of prescription-drug discount cards to 33 million seniors will be funded by a Medicare trust fund, an administration official said, using money rarely spent on such pilot programs. Medicare is funded by two trust funds held by the U.S. Treasury. The trusts pay for hospital care and administering the federal health-insurance program for seniors and the disabled. They are funded through payroll taxes, income taxes paid on Social Security benefits and other sources.

Source: Wall Street Journal September 25, 2020 13:31 UTC