Medicare Trust Fund Solvent
until 2030
March 29, 2002 - In their annual report
released on March 26 the Medicare Trustees estimated that
the Medicare Part A Trust Fund would remain solvent until
2030, which is one year longer than they had estimated last
year. However, the group also stated that the long-term outlook
has worsened slightly, noting that Part A spending will outpace
tax revenues by 2016 - the same projection made last year.
The Medicare Trustee's solvency estimates can play an important
role in reform and other discussions affecting Medicare. For
example, when the Balanced Budget Act was passed in 1997 containing
numerous payment reduction policies, the Trustees had been
estimating that the Trust Fund would be insolvent by 2001.
As the economy improved in the late 1990s, the Trust Fund's
lifespan was extended, lessening cries for major Medicare
reforms.
Information:
Karen Fisher, Senior Associate Vice President
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140
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