Medicare is funded by which sources?

• A. International aid
• B. Private premiums only
• C. Donations
• D. Taxation and the Medicare Levy

Answer: (D)

Medicare is funded through two main streams: general taxation revenue and the Medicare Levy. The levy is a specific portion of income tax designed to support universal access to subsidised medical and hospital services. It’s typically around 2% of taxable income, with thresholds and exemptions for low‑income earners. Don’t rely on international aid or private premiums as the ongoing funding source for Medicare; private premiums relate to private health insurance and do not fund Medicare itself. So the combination of taxation and the Medicare Levy is the correct source of funding.