Washington, DC – The Board of Medicare Trustees released its annual report this morning, finding that Medicare’s Hospital Insurance (Part A) trust fund will be depleted by 2031, three years later than the trustees’ last estimate of depletion in 2028.
“Despite this re-estimate, policymakers must address the financial sustainability of the Medicare program,” said BPC Senior Vice President Bill Hoagland. “America’s population is rapidly aging, health care costs continue to rise, and combined, both will continue to increase Medicare’s financial obligations.”
Even with two years of improved projections, the Medicare program’s Hospital Insurance program continues to be in a perilous position. Unless reformed, the program can only guarantee eight years of paying 100% of scheduled benefits to over 65 million Americans. Failure to address this shortfall puts providers and beneficiaries at risk. While Congress and the Biden administration have agreed—for now—to spare the program from reforms, it is imperative that Congress take action to improve the sustainability and affordability of future Medicare beneficiaries, without compromising the quality care that beneficiaries depend on.
BPC’s Health Program will continue working on bipartisan solutions to keep the program solvent for current and future beneficiaries.
BPC’s Bill Hoagland is available for comment.