Medicare Part B is financed by monthly premiums from those beneficiaries who voluntarily enroll in the program, and the funds are deposited in the Federal Supplementary Medical Trust Fund.

• A. True
• B. False
• C. Not applicable
• D. Not stated

Answer: (A)

The situation being tested is how Medicare Part B is funded and where that funding is held. Part B is funded by two main sources: monthly premiums paid by beneficiaries who enroll and general revenues from the federal government. The premiums cover a portion of Part B costs, while the rest is financed with general revenues. Both streams are deposited into the Federal Supplementary Medical Insurance (SMI) Trust Fund, which finances Part B (and Part D). So the statement is correct: enrollment is voluntary and premiums are collected, with the funds going into the SMI Trust Fund.