Medicare Predicted Exhaustion Unchanged for 2012

Medicare Set-Aside Blog on May 1, 2012 | Posted by


On April 23, 2012, the Medicare Board of Trustees released the 2012 Annual Report noting that the Health Insurance (HI) trust fund’s estimated exhaustion date remains at 2024. The 2% reduction in HI outlays proposed under the Budget Control Act of 2011 are expected to offset growth in other areas and allow the prediction to stand. Because the trustees project that the HI tax income and other dedicated revenues will fall short of expenditures in all future years under the current law, it can be expected that changing the law will be their likely desired solution. Unfortunately that will only assist covering current expenditures and not address the long term viability for the benefit of those who will be paying the increased contributions. Given that Medicare spent $549 billion in 2011, it would also be apparent that more MSP enforcement would be an effective means to stretch trust fund dollars further.

The annual report is available here.