New Report Says Medicare Will Run Out Of Money Sooner Than Expected

New Report Says Medicare Will Run Out Of Money Sooner Than Expected

The main trust fund behind Medicare, the USA health-care program for the elderly and disabled, will be exhausted in 2026, three years earlier than was projected a year ago, the government said Tuesday.

The projections are the first from the administration since Trump signed a $1.5 trillion tax cut into law in December. The problems in the entitlement programs only add to those woes.

The Medicare trust fund will be depleted in 2026, the administration said. Last year's report put it three years later. Taken separately, the fund for retirees is now expected to be depleted in 2034, a year earlier than last year's report, while the disability insurance reserves run out in 2032, four years later than projected last year.

The House Ways and Means Social Security Subcommittee plans to hold a hearing Thursday to examine Social Security's solvency, and will focus on findings of the 2018 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, which is due out this week. Some 45 million retirees and six million dependents receive Social Security benefits.

Each year, the trustees project the long-term finances of Medicare, which covers about 58 million Americans.

Together, the two programs have been credited with dramatically reducing poverty among older people and extending life expectancy for Americans.

French Open 2018: Garbine Muguruza thrashes Maria Sharapova to reach semi-finals
Muguruza isn't giving he opponent many chances to breathe, and that's the reason for her quick success in these recent matches. The Romanian broke at the start of the second set and then held for 6-3 as Kerber dropped her serve again in the ninth game.

Medicare Part A's trust fund is funded through payroll taxes, split between employer and employee.

However, as now projected, it is highly unlikely that economic growth absent larger reforms could solve the programs' huge budget quagmire.

But in a statement, Treasury Secretary Steve Mnuchin says the government's economic agenda will generate the long-term growth needed to help stabilize both Medicare and Social Security.

The report says the other trust fund, which covers Medicare Parts B and D, is expected to be financed through the next 10 years and beyond. Its giant trust fund for inpatient care won't be able to fully cover projected medical bills starting at that point.

For Medicare, the coffers are expected to be empty in 2026, just eight years from now. And 2017's Tax Cuts and Jobs Act is making the problem worse by cutting Medicare and Social Security taxes further reducing available revenues.

"Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare", the trustees concluded.

Related news:

Hot News

Halep tops Muguruza, eyes first major title
Jun 08, 2018 - 02:22
Muguruza came back in the second set as both players shrieked and grunted every time they hit the ball. Like Sharapova, Halep was erratic early, making 30 unforced errors in the first set.

isis-killer-beheading-video-story-top Meghan Markle and Prince Harry's daughters will NOT inherit a royal title
Jun 08, 2018 - 02:17
Their first stop on June 14 will be officially opening the Mersey Gateway Bridge , at Catalyst Science Discovery Centre. She even got it engraved 'To M.M.

isis-killer-beheading-video-story-top Crocodile kills vicar during mass baptism in Ethiopia
Jun 07, 2018 - 02:02
Lake Abaya, Ethiopia's second-largest lake, is infested with aggressive crocodiles, according to the Lonely Planet travel guide . While hardly an everyday occurrence, crocodile attacks are a known risk in Ethiopia - as in any region where they thrive.

Macron phone call went ‘terrible’
Jun 06, 2018 - 12:52
Last week, Macron denounced the imposition of U.S. tariffs on steel and aluminum as "illegal", calling it a "mistake". The readout said: "Both leaders discussed the migration problem in Libya, and timelines to solve it".

isis-killer-beheading-video-story-top Discovery wins PGA Tour rights for $2bn
Jun 06, 2018 - 12:51
Now, it has purchased the global TV and online rights to the PGA Tour for a reported $2 billion. They are now in the PGA Tour business and that's not something you're going to walk away from.

isis-killer-beheading-video-story-top Google unceremoniously removes the tablet section from official Android website
Jun 06, 2018 - 12:50
OEMs started producing a lot of premium and cheap tablets and over-saturation will, of course, lead to non-profitability. So while it might still be running the life support machine, Android tablets are practically dead for Google.

isis-killer-beheading-video-story-top Barcelona defender Samuel Umtiti signs new five-year deal
Jun 06, 2018 - 12:50
Samuel Umtiti has agreed a new five-year deal with Barcelona , ending speculation that he could leave Camp Nou this summer. I don't see myself playing for another team. "I'm not going to speak about the numbers, that's not my problem", he added.

isis-killer-beheading-video-story-top High Court Orders Protection For Screening Of Rajinikanth's Kaala In Karnataka
Jun 06, 2018 - 12:49
According to reliable sources, Kaala , which was initially banned in Karnataka, will now release in almost 130 screens in the state.

isis-killer-beheading-video-story-top Saudi Arabia 0-3 Peru
Jun 06, 2018 - 12:48
In its last World Cup appearance in 1982 in Spain, Peru finished last in its group and failed to make it out of the first round. Guerrero was initially banned for 12 months by Federation Internationale de Football Association , reduced to six on appeal.

isis-killer-beheading-video-story-top Apple CEO Tim Cook says data tracking is 'totally out of control'
Jun 05, 2018 - 08:02
The Times specifically takes issue with Facebook's practice of letting these device partners "override sharing restrictions". The data transfer was based on a connection the phone's software was allowed to make, directly to Facebook's information.

isis-killer-beheading-video-story-top Rohr Unveils Eagles’ Final Squad For World Cup
Jun 04, 2018 - 23:56
I don't think we got a lot of answers though because Nigeria just lay down in the first period and let England do what they want. New Brighton signing Leon Balogun features, and former Chelsea midfielder John Obi Mikel will captain the side.

isis-killer-beheading-video-story-top Apple has blocked updates to Telegram since April
Jun 02, 2018 - 01:06
Alexander Zharov, head of Roskomnadzor refused to provide details on what actions the telecom watchdog can take if Apple fails to reply.

isis-killer-beheading-video-story-top Trump Receives Letter from Kim Jong Un
Jun 02, 2018 - 01:03
He and Pompeo shook hands shortly after 9:00 am (1300 GMT) and began their talks over breakfast, with four people on each side. Meanwhile, North and South Korean officials continue their dialogue on Friday at the border village of Panmunjom.

isis-killer-beheading-video-story-top Kremlin Critic Browder Arrested in Spain on Russian Warrant
Jun 01, 2018 - 15:46
But that all changed in 2005 when he was expelled from the country after being deemed a threat to national security. An Interpol spokesperson said: "There is not, and never has been, a Red Notice for Mr Bill Browder".

isis-killer-beheading-video-story-top Xiaomi Mi 8 SE with Snapdragon 710 SoC & 20MP Selfie Camera Launched
Jun 01, 2018 - 15:30
It is worth noting that the Xiaomi Mi 8 SE is the first-ever smartphone to be powered by Qualcomm's new mid-range chipset. On the imaging front, the Mi 8 sports a vertical orientation of dual 12 MP cameras with an LED flash in the middle.