Medicare Trustees Renew Funding Warning as 2033 Trust Fund Depletion Threatens 11% Part A Cut
Updated
Updated · Fox News · Jul 31
Medicare Trustees Renew Funding Warning as 2033 Trust Fund Depletion Threatens 11% Part A Cut
3 articles · Updated · Fox News · Jul 31
Summary
Medicare trustees again issued a statutory funding warning, saying general revenues will cover more than 45% of program costs in fiscal 2026—the first year of the projection window.
The warning comes as Medicare's Hospital Insurance trust fund is projected to run dry in the second quarter of 2033, when payroll-tax income would cover only 89% of scheduled Part A benefits.
Medicare spent about $1.2 trillion last year and is projected to reach roughly $2.5 trillion by 2035, with rising per-beneficiary costs contributing more to spending growth than enrollment.
Trustees estimate 75-year solvency would require raising the Medicare payroll tax from 2.9% to 3.46%, cutting Part A provider payments by 12%, or combining both steps.
Congress and presidents have largely ignored the alarm for nine straight years; only one president has ever formally responded, and no remedial legislation has been enacted.