Trustees report warns Medicare finances worsening
The report from program trustees says Medicare will become insolvent in 2026 — three years earlier than previously forecast. Its giant trust fund for inpatient care won't be able to fully cover projected medical bills starting at that point.
The report says
The warning serves as a reminder of major issues still languishing while
Treasury Secretary
"However, certain long-term issues persist," the statement added. "Lack-luster economic growth in previous years, coupled with an aging population, has contributed to the projected shortages for both
At the same time, the monthly Medicare "Part B" premium for outpatient care paid by most beneficiaries is projected to rise by about
Both the cost-of-living increase and the Medicare outpatient premium are not officially determined until later in the year, and the initial projections can change.
More than 62 million retirees, disabled workers, spouses and surviving children receive
Together the two programs have been credited with dramatically reducing poverty among older people and extending life expectancy for Americans. Financed with payroll taxes collected from workers and employers,
But demands on both programs are increasing as America ages.
Unless lawmakers act, both programs face the prospect of being unable to cover the full cost of promised benefits. With
For Medicare, insolvency would mean that hospitals, nursing homes and other providers of medical care would be paid only part of their agreed-upon fees.
Medicare is widely seen as a more difficult problem that goes beyond the growing number of baby boomers retiring. It's also the unpredictability of health care costs, which can be jolted by high-priced breakthrough cures, and which regularly outpace the overall rate of economic growth.
The
The four top officials serve as the
President
But federal deficits keep rising, and the recent Republican tax-cut bill is expected to add to the debt.
Last year's tax law, which cut taxes on
Higher deficits mean less maneuvering room for policymakers when the day of reckoning finally arrives for
In principle, the
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