Medicare may run out by 2017

[okarol]

Medicare may run out by 2017
Medicare Trustees Issue 2009 Annual Report

On May 12, 2009, the Department of Health and Human Services issued a Press Release announcing the release of the 2009 Annual Report of the Board of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds (Report).

According to the Report, the Hospital Insurance (HI) trust fund is now projected to be exhausted in 2017, which is 2 years earlier than reported in the 2008 Annual Report.  In fact, the Report indicates that the short-range financial status of the HI trust fund has not be considered satisfactory since 2003, and that the outlook has further deteriorated as a result of the current economic recession.

Further, the Board of Trustees concludes that the financial outlook of the Medicare program continues to raise serious concerns.  The Board of Trustees also concludes that the Report's projections demonstrate the need for timely and effect action to address Medicare's financial challenges.



Today, concerns regarding the financial outlook of the Medicare program were reiterated in a Press Release issued by Senate Finance Committee Chairman Max Baucus, which stated (in part):

"There is a direct connection between the rising cost of health care and the long-term stability of the Medicare program, and this report underscores the urgency of action on comprehensive health care reform this year. One of my most important goals for health reform is to reduce the skyrocketing costs that are hurting families, business, and the Medicare program.  As costs continue to rise, the Medicare program so important to so many American families is put in jeopardy...[t]his report shows us that our economic recovery effort is just as pressing today as it was six months ago.  It shows us that a strong and full recovery is essential to preventing further erosion to Medicare and to protecting our long-run finances so that our children and grandchildren can count on these vital programs just like millions of Americans do today."

http://medicareupdate.typepad.com/medicare_update/2009/05/2009medicaretrusteesannualreport.html

[jbeany]

Social Security is supposed to go belly up by 2037, too.

[paris]

I can remember my mother thinking social security would run out before she retired. There were constant reports about how little there was and how many people would need it.  Mom died at age 88, five years ago.  She got her moneys worth!  I will be gone before it runs out, but I do worry for the next generations.  The baby boomers are a big drain on the system (that would include me).