Medicare Faqs

What Is the Medicare Solvency Trigger?
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The Medicare Solvency Trigger is also known as the "45 percent trigger." Medicare Trustees are required under the Medicare Modernization Act of 2003 (MMA) to estimate when program expenditures will exceed dedicated revenue.


The Medicare Solvency Trigger is also known as the "45 percent trigger." If the actuaries estimate the ratio will exceed 45 percent within seven years, an "excess general revenue funding" alarm is issued. If the determination is made in two consecutive years, a "Medicare Funding Warning" triggers a process in which the president and Congress are expected to participate. This is a technical, statutory provision that would face considerable political debate and conflict before any particular response emerged. 


RELATED FAQs

What Is the Medicare Funding Warning?
What Happens When a Medicare Funding Warning Is Issued?
Is the Hospital Insurance (HI) Trust Fund, Which Finances Part A, Expected to Run Out of Money?
What Happens if the Hospital Insurance (HI) Trust Fund, Which Finances Part A Services, Becomes Insolvent?
Who Determines the Financial Solvency of the Hospital Insurance (HI) Trust Fund?
Why Is There So Much Discussion About the Solvency of Medicare?
Can the Supplementary Medical Insurance (SMI) Trust Fund, Which Finances Parts B and D, Become Insolvent?

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