Do you worry about Social Security and Medicare?
WASHINGTON, May 12 (UPI) -- A U.S. government report by the trustees who monitor Medicare and Social Security predicts the Medicare trust fund will run out of money by 2016.
The U.S. Department of Health and Human Services said in a statement Tuesday that last year 45.2 million people were covered by Medicare. About 22 percent of beneficiaries have enrolled in private health plans that contract with Medicare to provide healthcare services.
The report said the Medicare hospital insurance fund "does not meet the short-range test of financial adequacy," noting that the fund has not been considered satisfactory since 2003. The report said the fund's financial health has dipped amid the nation's current recession.
"The HI trust fund is not adequately financed over the next 10 years," the report said. "At the beginning of 2009 the assets of the HI trust fund were $321 billion and are projected to be exhausted during 2017, under the intermediate assumptions."
As for Medicare Part B and Part D accounts in the Supplemental Medical Insurance trust fund, the report said they are "adequately financed" since premium and general revenue income are reset each year to match expected costs.
The report said total Medicare expenditures were $468 billion in 2008, and were expected to increase faster than workers' earnings or the overall economy in the coming years.
"This isn't just another government report. It's a wake up call for everyone who is concerned about Medicare and the health of our economy," said Health and Human Services Secretary Kathleen Sebelius said. "And it's yet another sign that we can't wait for real, comprehensive health reform."
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