What is the Medicare trust fund, and how is it financed? Q.What is the Medicare trust fund, and how is it financed? A.The Medicare trust fund finances health services for beneficiaries of Medicare, a government insurance program for the elderly, the disabled, and people with qualifying health conditions specified by Congress. The trust fund is financed by payroll taxes, general tax revenue, and the premiums enrollees pay. Read more about What is the Medicare trust fund, and how is it financed?