The Social Security and Medicare board of trustees says Medicare’s trust fund will be exhausted in 2024. That’s 5 years earlier than they predicted in 2010. Officials blame the accelerated trust fund insolvency on the recent recession and rising healthcare provider salaries. According to the ModernHealthcare.com article, once exhausted, providers would not receive payments until additional tax revenue was received unless they allow payment of only portions of the bills.
Obama administration officials responded to the report by highlighting the effects of the Patient Protection and Affordable Care Act, which they credited with lowering future Medicare spending by 25%. “Having the ACA in place is the main reason these projections are not worse,” HHS Secretary Kathleen Sebelius said at a Friday news conference. Read more