Medicare Is Not Going AwaySubmitted by InFocus Financial Advisors, Inc. on February 16th, 2017
Medicare Isn't Going Broke and the Percentage 87%:
Medicare is frequently discussed as if it will cease to operate in the next decade. This really isn't how it will work out. Here's a great piece of research that is very good to know that I found during my weekly research this week:
"1. Medicare isn’t “going broke” even though it does face financial challenges.
When some policymakers talk about Medicare as being “bankrupt” or “going broke” they are referring to the status (or “solvency”) of Medicare’s Hospital Insurance (Part A) trust fund, out of which beneficiaries’ hospital bills are paid. When spending on benefits exceeds revenues (primarily payroll taxes), and assets in the trust fund account are fully depleted, Medicare will not have sufficient funds to pay all Part A benefits. Currently, Medicare’s actuaries estimate that there will be sufficient funds available to pay for hospital insurance benefits in full until 2028 (Figure 1). At that point, Medicare will be able to cover 87% of costs covered under Part A through payroll tax revenues—but the Medicare program will not cease to operate. " -- Kaiser Family Foundation
Medicare badly needs fixed but all hope is not lost, as the headlines would have you believe.