Medicare Faqs

Is the Hospital Insurance (HI) Trust Fund, Which Finances Part A, Expected to Run Out of Money?
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No, the Hospital Insurance (HI) Trust Fund is not expected to literally run out of money. Although Medicare faces major financing challenges, the program is not on the verge of bankruptcy or ceasing to operate.

The 2012 Medicare Trustees report projects HI Trust Fund will be able to pay 100 percent of the costs of the Part A coverage through 2024. After that time the payroll taxes and other revenue deposited in the trust fund will still be sufficient to pay 87 percent of Part A costs.The HI Trust Fund is consider insolvent when revenues and trust fund balances will not cover 100 percent of costs.

RELATED FAQs

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




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