Certified Revenue Cycle Representative (CRCR) Practice Exam

Which option is a government-sponsored health care program that is financed through taxes and general revenue funds?

1. Medicaid

2. Medicare

3. Insurance exchange

4. Social security

The correct answer is: Medicare

The correct choice is Medicare. This program is a government-sponsored health care initiative primarily designed for individuals aged 65 and older, as well as younger individuals with disabilities or specific medical conditions. Medicare is financed through a combination of payroll taxes collected under the Federal Insurance Contributions Act (FICA), premiums paid by enrollees, and general revenue funds from the federal government. Medicaid, while also a government-sponsored program, is typically financed jointly by both federal and state governments and caters to low-income individuals, including families, children, and the elderly. The Insurance Exchange is a marketplace designed for individuals to purchase health insurance, typically set up under the Affordable Care Act, and does not directly receive government financing in the same manner as Medicare. Social Security provides economic support for retirees and disabled individuals, but it is not a health care program and does not provide direct funding for health services. Thus, Medicare stands out as the program that is specifically focused on health care, funded through a combination of taxes and general revenue, making it the correct answer to the question.