Medicare Risks Going Broke in 2024, Trustees' Report Says.
Published on Fri May 20, 2011
CMS says it is making changes to ensure the program stays funded longer than projected.The recent widely-reported news about Medicare going broke by 2024 was not a late April Fool's joke, unfortunately.Part A spending is growing faster than taxes are coming in to pay for the program, and the Part A coffers will be empty by 2024 unless the government takes action, according to the "2011 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds," which was published on May 13.Part B and Part D accounts "are adequately financed under current law, since premium and general revenue income are reset each year to match the expected costs," the report notes. "Such financing, however, would have to increase faster than the economy to match expected expenditure growth under current law."ACA Allowed for Eight Extra Years of Part A FundingDespite the bleak [...]
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