Most people turning 65 know that Medicare pays for medical expenses, but not all seniors know how the program receives funds. Where does the U.S. Government get the money to pay for health care for People 65 and older. Some of the money comes from the General Revenue, from income taxes that Americans pay. Additional funds come from Payroll Taxes, Employers who pay payroll taxes contribute to Medicare funding. Premiums paid by Beneficiary"s the Part B premiums paid by medicare enrollees also help fund Medicare. When employed the employer withholds a percentage of money from your paycheck, which includes Social Security and Medicare, the Medicare part helps pay for health care cost when you start to use the program. All the funds go into the Medicare Trust Fund, which the Government manages. When you start receiving Medicare benefits you will not have to pay the total health care costs because the trust pays providers on your behalf, Usually 80%. a lot of Medicare Beneficiaries enroll in Medicare Supplement Plans offered by private insurers like AARP, Aetna, Humana, and Mutual of Omaha which help cover the Remaining 20% the Medicare Does not Pay.