Medicare Trustees Project Trust Fund Solvent Until 2026

The Medicare Hospital Insurance Trust Fund will have sufficient funds to pay full benefits until 2026, according to the latest annual report from the Medicare Board of Trustees. That’s unchanged from last year’s report, which projected that the Medicare trust fund would become insolvent three years earlier than they previously expected – in part because of less-than-anticipated revenue. The report projects that Medicare expenditures will grow from 3.7 percent of gross domestic product in 2018 to 6.5 percent by 2093, due to faster growth in the Medicare population and increases in the volume and intensity of health care services. The Supplementary Medical Insurance Trust Fund, which helps pay for physician, outpatient hospital, home health, and others services for beneficiaries enrolled in Medicare Part B and prescription drug coverage under Part D, is expected to be adequately financed because income from premiums and general revenue are reset each year to cover expected costs. For more details, see today’s second Financial Feature.