“Medicare’s hospital trust fund will run out of money in 2029”

“Medicare’s hospital trust fund will run out of money in 2029,” by Carolyn Y. Johnson, Washington Post

“The trust fund that pays Medicare’s hospital expenses will run out of money in 2029, a year later than the most recent projection, according to a federal report. The Social Security program will remain solvent until 2034, a projection unchanged from last year. The annual report from the Social Security and Medicare board of trustees provides a snapshot of the long-term solvency of the federal government’s two biggest entitlement programs.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Oh, so no problem, right? We have a decade or two to deal with these problems. Hmmm, well, no. Both Social Security and Medicare are already consuming their “trust funds” which contain nothing but IOUs from the general fund, meaning the federal government has to borrow to pay back what it has already spent. As well, it’s not like the problems that created this premature insolvency are getting better. It all hits the fan in the 2030s when boomers start turning 85 and needing LTC in huge numbers. That brings Medicaid into the mix and Medicaid is a hopeless case if Medicare stops propping it up with generous provider reimbursements and Social Security cuts payments by 25% to recipients who must turn over their income to cover Medicaid costs. Oh man, don’t get me started!

Medicare’s hospital trust fund will run out of money in 2029