By NextBestFitEmployer Medicare payroll tax (1.45%)
Continues and now flows into the UHP Trust Fund. It rises slightly because more compensation is paid as taxable wages.
Result
$165.7B
$159.2B → $165.7B
Per resident, per year
$486
÷ 341.1M people
Per household
$1,254
÷ 132.2M households
Range
$165.2B–$166.0B
Lean and costly scenarios.
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | 2024 amount (CMS NHE Tables 5-1 to 5-4) Sources: CMS Office of the Actuary (2025) | $159.2B | |
| 2 | Newly taxable wages (see income-tax item) | $529.4B | |
| 3 | × HI rate 2.9%, half paid by each side | $529.4B × 2.9% × 50% × 85.05% private | $6.5B |
| 4 | Under the plan (flows to the UHP Trust Fund) | $165.7B |
Inputs used
| Input | Kind | Value |
|---|---|---|
| Medicare HI payroll tax (employer + employee) | data, high confidence | 2.9% |
Trade-off: Continues as before.
Sources: CMS Office of the Actuary (2025)