Running on Empty

The recently released 2019 Medicare Trustees Report shows that Medicare spending will spike by 2038, with total Medicare costs expected to grow from 3.7% of gross domestic product in 2018 to 5.9% in the next 20 years, Modern Healthcare reported.

Just as alarming, says Citizens’ Council for Health Freedom, is that the report also projected Medicare’s Federal Hospital Insurance Trust Fund (Medicare Part A) will be insolvent by 2026. (Read the full report here.)

“The 60 million people in Medicare today, and the 10,000 seniors added each day, are in trouble,” said CCHF president and co-founder Twila Brase. “Payments for care will be limited to how much comes in from payroll taxes. In 2018, spending under Medicare’s hospitalization program exceeded tax revenue by $1.6 billion. The fund is running on empty.

“Medicare’s Trustees say Medicare patients may soon have less access to doctors and lower quality of care,” Brase added. “They recommend substantial changes ASAP to allow doctors, hospitals, taxpayers and Medicare patients to ‘adjust expectations and behavior.’”

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