March 23, 2001
Trustees Say Medicare Solvent Until 2029
In its annual report, released on March 19, the Medicare Board of Trustees announced that based on probable economic and demographic assumptions, the Medicare Part A Trust Fund will be solvent until 2029. This timetable is four years longer than the trustees reported last year and represents the fourth consecutive year in which the board extended the life of the Trust Fund. The report indicates that the positive outlook is due to both a strong economy and lower-than-expected Medicare spending.
While reporting improvement in the short-range financial outlook for the Trust Fund, the trustees advised the need to implement solutions to deal with the long-term viability of the program. Specifically, the report stated that "We believe that solutions can and must be found to ensure the financial integrity of the [Hospital Insurance] program in the long term. Effective and decisive action is necessary to build upon the strong steps taken in recent reforms"
Information: Lynne Davis, AAMC Office of Government Relations, 202-828-0526, or Karen Fisher, AAMC Division of Health Care Affairs, 202-862-6140.
