by Charles Blahous via Defining Ideas
The program promises benefits far in excess of its projected revenues. Why haven't lawmakers acted?
Joseph Antos and Robert E. Moffit | AEI Economic Perspectives
Medicare’s financial outlook has deteriorated in the past year. Every year, the program relies more on general revenues to cover its costs. In total, Medicare will receive $324 billion in general revenues this year. That will more than double by 2026. Prompt action is needed to put Medicare on a sound financial footing.
Joseph Antos and Robert Emmet Moffit
Read Online Printable Copy
ABSTRACT
Medicare’s financial outlook has deteriorated in the past year, according to the latest annual report by the program’s trustees. The Medicare Hospital Insurance trust fund is projected to be depleted in 2026, three years earlier than estimated in last year’s report. That understates the policy challenge. Every year, the program relies more on general revenues to cover its costs. In total, Medicare will receive $324 billion in general revenues this year. That will more than double by 2026. Prompt action is needed to put Medicare on a sound financial footing.
Read this publication online.
View a printable copy.
ALSO OF INTEREST
The 2018 Medicare Trustees Report: Fiscal challenges and future reforms
A proposal to enhance competition and reform bidding in the Medicare Advantage Program.
Charles Blahous, E21
My recently-published estimate of the federal costs of Medicare for All (M4A) continues to receive public and press attention. The ongoing discussion has prompted a number of common questions about the study, which this article attempts to answer. While Americans are already shouldering the vast majority of these costs in other ways, it does not necessarily follow that they would be comfortable with transferring virtually all these personal and societal resources to the federal government to redistribute in the form of health benefits. Read more here...