Medicare is in relatively good financial health for the moment. In their 2014 report, the Medicare Trustees project Medicare’s trust funds to last four years longer than projected a year ago. Medicare is succeeding at reining in health care costs. Medicare Part A, whose costs are covered by the Medicare trust fund, spent less per individual with Medicare in 2013 than in 2009.
Thanks in large part to lower than expected Medicare costs in 2013, the Trustees project that Medicare will continue to have adequate financing until 2030. Put differently, the Medicare trust fund, which covers Medicare Part A costs—primarily for hospital and nursing home services—is projected to last longer than ever before projected.