Write For Us

Medicare to be exhausted by 2026, trustee report says


Medicare Part A, which helps pay for hospital, home health services for senior citizens, will have its funds depleted by 2026, Medicare trustees said in their annual report Tuesday. File photo by zimmytws/Shutterstock

By Daniel Uria, UPI

Medicare's Hospital Insurance Trust Fund is expected to run out of funding three years earlier than expected, the program's trustees said in a report on Tuesday.

Trustees project the trust fund for Medicare Part A, which helps pay for hospital and home health services for senior citizens, will have its funds exhausted by 2026 at which point it will only be able to pay out 91 percent of promised benefits.

The trustees determined the fund isn't adequately financed over the next 10 years. Its projected income also was lower than estimated in 2017 due to lower payroll taxes attributable to lowered wages for 2017.

"The HI trust fund does not meet either the trustees' test of short-range financial adequacy or their test of long-range close actuarial balance," the report stated.

Medicare Part B, which helps seniors pay for doctor's bills and outpatient expenses, and Part D, which offers prescription drug coverage, are both funded by a combination of premium payments and money from general federal revenue and will be financed in full indefinitely.

"The Part B and Part D accounts in the [Supplementary Medical Insurance] trust fund are expected to be adequately financed because premium income and general revenue income are reset each year to cover expected costs," the report stated. "Such financing, however, would have to increase faster than the economy to cover expected expenditure growth."

Medicare covered 58.4 million people, including 49.5 million aged 65 and older and 8.9 million with a disability, at a cost of $710.2 billion in 2017.

The solvency report was the first since the Affordable Care Act's Independent Payment Advisory Board was repealed as part of the two-year government budget deal signed by President Donald Trump in February.

A companion report by Social Security trustees estimated that the combined trust funds for Social Security, which fund old-age benefits and disability insurance programs, will be depleted by 2034.

At the times the combined reserves are depleted the continuing income of the trust funds would be sufficient to pay 79 percent of scheduled benefits.


Note: If you think this story need more information or correction, feel free to comment below your opinion and reaction.
Like & Follow to Stay Updated ...


Alabama,1,Arizona,1,Barack,1,California,3,Colorado,1,Connecticut,1,Crime,531,Florida,1,Franc,1,Hawaii,8,Illinois,1,Los Angeles,2,Massachusetts,3,Mississippi,1,New York,130,U.S.,1558,Washington,4,
U.S. - U.S. Daily News: Medicare to be exhausted by 2026, trustee report says
Medicare to be exhausted by 2026, trustee report says
U.S. - U.S. Daily News
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy