HI 00201.030 Financing the Supplementary Medical Insurance (SMI) Program

Official source

The medical insurance plan is financed by the monthly premiums of those who enroll under the plan and contributions from general revenues.

All Part B premiums collected and the general revenue payments become part of the Federal Supplementary Medical Insurance Trust Fund.

This fund is administered by a Board of Trustees consisting of the Secretary of the Treasury (who is the Managing Trustee), the Secretary of Labor, and the Secretary of Health and Human Services all ex-officio. The Managing Trustee is authorized to invest trust funds only in interest-bearing obligations of the United States, or in obligations guaranteed as to both principal and interest by the United States not needed for current withdrawals, and to make payments from the fund for purposes of Part B, including administrative expenses.

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HI 00201.030 Financing the Supplementary Medical Insurance (SMI) Program

Official source

The medical insurance plan is financed by the monthly premiums of those who enroll under the plan and contributions from general revenues.

All Part B premiums collected and the general revenue payments become part of the Federal Supplementary Medical Insurance Trust Fund.

This fund is administered by a Board of Trustees consisting of the Secretary of the Treasury (who is the Managing Trustee), the Secretary of Labor, and the Secretary of Health and Human Services all ex-officio. The Managing Trustee is authorized to invest trust funds only in interest-bearing obligations of the United States, or in obligations guaranteed as to both principal and interest by the United States not needed for current withdrawals, and to make payments from the fund for purposes of Part B, including administrative expenses.