Current Medicare will consume the entire federal budget if it is not reformed. Medicare has been running in the red since 2008. The Medicare Trust Fund (Part A) has been cashing in its IOUs to make up the shortfall, which means the General Fund must come up with the dollars to redeem the IOUs. By law, Medicare Parts B and D, are funded by only 25% from the premiums with the remaining 75% being funded by the General Fund. By 2030, one in five residents of this country will be 65 or older, twice what it is today. And by 2030 there will be only 2 workers for every retiree.
