CHA News Article

Medicare Trustees Project Solvency Through 2026

The Medicare trustees released a report today projecting the Medicare Hospital Insurance Trust Fund to remain solvent until 2026, two years beyond what was projected in last year’s report. A number of factors contributed to the improved outlook, including lower-than-expected Part A spending in 2012, lower projected Medicare Advantage program costs and certain provisions of the Affordable Care Act that have reduced growth more than expected. This is consistent with reports earlier this year that pointed to a decrease in hospital spending. Medicare spending per beneficiary continues to grow at a slower rate than the Consumer Price Index and is projected to grow slower than the overall economy for the next several years. While premiums for Part B will not be determined until later this year, the preliminary estimate in today’s report indicates that it will remain unchanged from the 2013 premium.