Medicare trustees report shows continued slow cost growth

The Medicare Hospital Insurance Trust Fund will have sufficient funds to cover its obligations until 2030, the same year that was projected last year and 13 years later than projected prior to passage of the Affordable Care Act, according to the latest annual report from the Medicare Board of Trustees. The 75-year actuarial deficit in the HI Trust Fund is projected at 0.68% of taxable payroll, down from 0.87% in last year’s report. Part B of Supplementary Medical Insurance, which pays doctors' bills and other outpatient expenses, and Part D, which provides access to prescription drug coverage, are both projected to remain adequately financed into the indefinite future because current law automatically provides financing each year to meet the next year's expected costs, the trustees said. According to the Centers for Medicare & Medicaid Services, per-enrollee Medicare spending growth has averaged 1.3% over the past five years and is expected to continue to be lower than growth in overall health expenditures over the next decade. In 2014, Medicare expenditures were slightly lower for Part A and Part D, and higher for Part B than previously estimated, CMS said.