Health Of Medicare Trust Fund Improves, Staving Off Need For Dreaded ‘Death Panels’
The board reports that it will be depleted in 2029, a year later than the Obama administration had last projected. The estimate helped avoid activating the Independent Payment Advisory Board.
The Washington Post:
Medicare’s Hospital Trust Fund Will Run Out Of Money In 2029
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. (Johnson, 7/13)
The Wall Street Journal:
Social Security, Medicare Face Depletion Within 17 Years, Trustees Say
The trust funds were built when more people paid into the system than received benefits. As the population ages, benefit payments are projected to exceed revenues, drawing down fund balances. Under current law, when the trust funds are emptied, benefits from the programs will be abruptly reduced. The latest projections say retirement benefits would be slashed by 25%. The status of the funds is thus a potential trigger for reforms in the programs. (Zumbrun, 7/13)