Hospital Insurance (HI) Trust Fund

The Medicare Hospital Insurance (HI) Trust Fund is one of two trust fund accounts held by the U.S. Treasury which pay for Medicare. The HI Trust Fund pays for Medicare Part A (Hospital Insurance) benefits, such as inpatient hospital care, skilled nursing facility care,home health care, and hospice care as well as Medicare Program administration, such as costs for paying benefits, collecting Medicare taxes, and combating fraud and abuse. It is paid for through Payroll taxes paid by most employees, employers, and people who are self-employed as well as other sources, such as income taxes paid on Social Security benefits, interest earned on the trust fund investments, and Part A premiums from people who aren’t eligible for premium-free Part A.