Medicare trustees project trust fund solvent until 2029

The Medicare Hospital Insurance Trust Fund will have sufficient funds to cover its obligations until 2029, one year later than projected last year, according to the latest annual report from the Medicare Board of Trustees. The projected 75-year actuarial deficit in the Hospital Insurance Trust Fund is 0.64% of taxable payroll, down from 0.73% in last year’s report. “Notwithstanding the assumption of a substantial slowdown of per capita health expenditure growth, the projections indicate that Medicare still faces a substantial financial shortfall that will need to be addressed with further legislation,” the report summary states. “Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers and taxpayers.” According to the Centers for Medicare & Medicaid Services’ Office of the Actuary, the report would not trigger implementation of the Affordable Care Act’s Independent Payment Advisory Board, because the Medicare per capita growth rate does not exceed the five-year average growth target.