Which statement about Medicare is true?

• A. Covers only hospital care
• B. All 65 and older, under 65 w certain disabilities, all ESRD; financed by payroll taxes
• C. Financed by general taxes
• D. Is for low-income families

Answer: (B)

Medicare is health insurance for people 65 and older, those under 65 with certain disabilities, and individuals with End-Stage Renal Disease. It is funded mainly through payroll taxes collected under FICA, which primarily support the hospital coverage part, with other parts paid for by a mix of beneficiary premiums and general tax revenue. This combination makes the statement true because it reflects both the eligibility groups and the payroll-tax financing, while the other points—being limited to hospital care, financed only by general taxes, or serving only low-income families—do not accurately describe Medicare.