Number: RS20946
Title: Medicare: History of Part A Trust Fund Insolvency Projections
Authors: Jennifer O'Sullivan, Domestic Social Policy Division 
Abstract: Almost from its inception, the HI trust fund has faced a projected shortfall. The insolvency date has been postponed a number of times, primarily due to legislative changes which had the effect of restraining growth in program spending. The 2007 report projects that, under intermediate assumptions, the HI trust fund will become insolvent in 2019, one year later than projected in 2006. The revision reflects slightly higher income and slightly lower benefit costs. The 2007 projection is seven years earlier than that projected in 2003, prior to the enactment of MMA. That law added to HI costs, primarily through higher payments to rural hospitals and to private plans under the MA program.
Pages: 4
Date: March 28, 2008