Medicare Trustees project Medicare Trust Fund to last until 2030 

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.

And, even if nothing changes between now and 2030, which is highly unlikely, the trust fund will still have funds to pay 85 percent of Medicare’s costs from people’s payroll taxes and other revenues after 2030.  

 

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Note that Congress has always stepped in to shore up Medicare’s finances and guarantee older and disabled Americans health security.  Since 1970, the Trustees have made annual projections regarding the Medicare trust fund’s financial health and either the growing economy has extended the life of the trust fund or Congress has stepped in to ensure Medicare remains strong.