The Medicare Trustees’ report estimates that the Hospital Insurance (Part A) trust fund will be exhausted in 2026, three years earlier than projected last year. Most of the changes between last year’s report and this year’s come in the short term; still, the projected 75-year shortfall increased from 0.64 percent of payroll last year to 0.82 percent of payroll. The change in the exhaustion date means that lawmakers have less than a decade to deal with Part A’s shortfall. We will have more on the Medicare Trustees’ report in the coming days.
With regards to Medicare on the whole (including Part B and D), the Trustees project total costs will rise from 3.7 percent of GDP in 2017 to 5.9 percent by 2042 and 6.2 percent by the 2092.