HOT AIR — Medicare’s hospital-insurance trust fund will run out of money two years earlier than expected, in 2028. The news was part of an annual report on the program released Wednesday. The report itself is hundreds of pages long but a summary of the findings was published on the Social Security Administration’s website. Regarding Medicare the summary reads:
The Trustees project that the Medicare Hospital Insurance (HI) Trust Fund will be depleted in 2028, two years earlier than projected in last year’s report. At that time dedicated revenues will be sufficient to pay 87 percent of HI costs. The Trustees project that the share of HI cost that can be financed with HI dedicated revenues will decline slowly to 79 percent in 2043, and will then rise gradually to 86 percent in 2090. HI expenditure is projected to exceed non-interest income throughout the projection period, as it has in every year since 2008. The HI fund again fails the test of short-range financial adequacy, as its trust fund ratio is already below 100 percent of annual costs and is expected to decline in a continuous fashion until reserve depletion in 2028.
The Wall Street Journal puts the current numbers in some context: