Which entitlement program is primarily financed through payroll taxes and provides health insurance for people 65 and older?

• A. Medicare
• B. Medicaid
• C. Social Security
• D. Private Insurance

Answer: (A)

The main concept here is a government program that provides health insurance for seniors and is funded mainly by payroll taxes. Medicare fits because it offers health coverage to people 65 and older, and its financing comes largely from payroll taxes collected under FICA that feed into the Medicare trust funds (especially for the hospital insurance part). Medicaid, by contrast, is run jointly by federal and state governments and is means-tested, not primarily payroll-tax financed. Social Security is also funded by payroll taxes, but it provides retirement and disability benefits, not health insurance for seniors. Private insurance isn’t a government entitlement and isn’t funded through payroll taxes.