The go-broke dates for Medicare’s hospital insurance trust fund have been pushed up from 2036 to 2033 due to rising healthcare costs and a new SSA law affecting Social Security benefits.
The current report from the programs’ trustees shows that Social Security’s trust funds, covering old age and disability recipients, will be unable to pay full benefits beginning in 2034, instead of last year’s estimate of 2035.
Medicare covers approximately 68 million people with severe disabilities or illnesses and those aged 65 and above. The hospital insurance trust fund faces a substantial financial shortfall that needs to be addressed through legislation soon after the current administration takes office.
Rising healthcare costs have led to an increase in expenses for Medicare, which are now projected to exceed earnings by $29 billion last year for the hospital insurance trust fund.
To mitigate this situation, lawmakers must consider legislation to change tax rates and prevent a complete depletion of funds for both programs.
Source: https://apnews.com/article/social-security-medicare-trust-fund-trump-74e13292f510739724a555d7ded7c1a3