Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Red Badger
The Medicare Trust Fund is exhausted in 2026. By law, benefits must be reduced to the level of revenue.

A SUMMARY OF THE 2021 ANNUAL REPORTS Social Security and Medicare Boards of Trustees

The Hospital Insurance (HI) Trust Fund, or Medicare Part A, which helps pay for services such as inpatient hospital care, will be able to pay scheduled benefits until 2026, the same year as reported last year. At that time, the fund's reserves will become depleted and continuing total program income will be sufficient to pay 91 percent of total scheduled benefits.

The Supplemental Medical Insurance (SMI) Trust Fund has two accounts: Part B, which helps pay for services such as physician and outpatient hospital care, and Part D, which covers prescription drug benefits. SMI is adequately financed into the indefinite future because current law provides financing from general revenues and beneficiary premiums each year to meet the next year's expected costs. Due to these funding provisions and the rapid growth of its costs, SMI will place steadily increasing demands on both taxpayers and beneficiaries. Note: By law, the General Fund picks up 75% of the SMI.

The Trustees are including in the report for the fifth consecutive year a determination of projected excess general revenue Medicare funding, as is required by law whenever annual tax and premium revenues of the combined Medicare funds will be below 55 percent of projected combined annual outlays within the next seven fiscal years. Under the law, two consecutive such determinations, as is the case again this year, constitute a "Medicare funding warning." Under current law and the Trustees' projections, such determinations and warnings will recur every year through the long-range projection period.

Medicare will be the next major crisis. The sh*t hits the fan in less than 5 years and there are no easy solutions. 10,000 baby boomers retire every day and will continue to do so until 2030. The SMI costs are eating up the General Fund as more people join the system and the costs of medical services increase faster than inflation.

20 posted on 12/15/2021 9:55:28 AM PST by kabar
[ Post Reply | Private Reply | To 1 | View Replies ]


To: kabar

MANY people are working past the age of 65 I am, YET my healthcare through work was less expensive for me BUT I was forced onto Medicare or face fines just STUPID!!!


21 posted on 12/15/2021 10:00:40 AM PST by Trump Girl Kit Cat (Yosemite Sam raising hell)
[ Post Reply | Private Reply | To 20 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson