Medicare runs out of money in 2026

As we are consumed with the health and economic crisis and political promises for more federal programs and spending, let’s not forget the major programs we have are running out of money.

Both the Medicare and Social Security trusts will be depleted within a little over ten years. (The Highway Trust Fund is not much better)

The estimated depletion date for the HI trust fund is 2026, the same as in last year’s report. As in past years, the Trustees have determined that the fund is not adequately financed over the next 10 years. HI income is projected to be lower than last year’s estimates due to lower payroll taxes.

2020 Medicare Trustees Report

The financial projections in this report indicate a need for substantial changes to address Medicare’s financial challenges. The sooner solutions are enacted, the more flexible and gradual they can be. The early introduction of reforms increases the time available for affected individuals and organizations—including health care providers, beneficiaries, and taxpayers—to adjust their expectations and behavior. The Trustees recommend that Congress and the executive branch work closely together with a sense of urgency to address these challenges.

2020 Medicare Trustees Report

It seems that every time government establishes a new program with ongoing obligations and liabilities, Congress fails to adjust and sustain the funding, perhaps because they fear telling the American people the true costs of the promises made. 😢

One comment

  1. I do miss the charts and graphs of Ross Perot. I am sure it would be considered fake news today.
    I believe these trust fund reports are true because if you are not taking in at least the same money that you are spending, something has to give.
    However, I totally understand why nobody cares. The government is now famous for big expensive bailouts so these funds will never run out of money. Now a days, I don’t believe any of the “official” covid-19 data and the media is so bias and the use of scare tactics so common why would anyone believe anything the news, the government, or an opposing politician says? Currently the covid-19 numbers don’t add up. People who die in motorcycle accidents died from covid-19, protests are safe but social distancing in a church is not, etc.. New Jersey numbers on its own web are conflicting. So why would people care about trust funds going broke when the sent almost everybody $1200 and are about to send everybody another $1200. The “government has plenty of money”. One day the bill will come due like it did in Greece a decade ago and you think we have mob riots now, wait until that day happens.

    Like

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