Healthcare reforms brighten outlook for Medicare trust fund, trustees say
The financial outlook for the seniors' healthcare program has been “substantially improved” by the new healthcare reforms, according to a new report from the Medicare Board of Trustees released Thursday.
Medicare's Hospital Insurance (HI) Trust Fund is now projected to remain solvent until 2029. That 12 years longer than reported last year, according to the trustees' report. Projected cost growth for the Medicare Part B Supplementary Medical Insurance (SMI) Trust Fund is also much slower. Before the healthcare reforms took effect, the Medicare trustees projected that Part B costs would hit 4.5% of the nation's gross domestic product at the end of 75 year. Now, they project it will only climb to 2.5% of GDP during that time, up from its current level of 1.5%.
The largest Medicare savings under the healthcare reforms come from reduced annual increases to skilled nursing facilities, home health agencies, hospitals, and other providers, the trustees note. To view the full analysis and report, visit the CMS website.