Medicare benefits are payable from two funds. Part A services, which, in general, are those rendered by institutions, are reimbursed from funds derived from payroll tax. Part B services, generally medical and surgical physicians' services, and outpatient treatment and diagnosis, are reimbursed from the fund created by voluntary premium payments and general Federal revenues.
N.Y. Comp. Codes R. & Regs. Tit. 10 § 451.211