Withholding payments for Medicare Part A and Part B

A portion of Social Security payroll taxes funds Part A of Medicare, which covers valid claims for hospital and nursing-home care, plus Medicare’s hospice program for patients who are expected to live no more than six months. People who have worked long enough to qualify for Social Security benefits (at least 40 quarters at jobs where Social Security payroll taxes are withheld from their pay) are entitled to Part A without having to pay a premium.

Monthly premiums for Part B of Medicare are withheld from Social Security payments; people with Part B who have not begun claiming Social Security pay their Part B premiums directly to Medicare every three months. Part B covers doctors, other outpatient expenses, and durable medical equipment.