Crouse Health Online: Wellness is just a click away.
  |  Connect with Us: 
Text Size

Health News

Medicare Solvent 2 Years Longer Than Expected: Report

Medicare Solvent 2 Years Longer Than Expected: Report


FRIDAY, May 31 (HealthDay News) -- The trust fund that finances Medicare's hospital insurance coverage will remain solvent until 2026, two years longer than had been predicted previously, according to a new report from the Medicare Trustees.

According to the government-appointed experts, cost controls implemented under the Affordable Care Act have slowed Medicare spending. This trend is expected to continue, the Trustees said, and Medicare spending will grow at a slower pace than the U.S. economy for the next several years.

"The Medicare Hospital Insurance trust fund is projected to be solvent for longer, which is good news for beneficiaries," Marilyn Tavenner, administrator of the U.S. Centers for Medicare & Medicaid Services (CMS), said in a news release.

From 2010 to 2012, Medicare spending per beneficiary grew at 1.7 percent annually. According to the report, this is slower growth than the average rate of growth in the Consumer Price Index, and much more slowly than the per capita rate of growth in the economy.

Both taxpayers and beneficiaries will benefit from this slower growth, the report said.

The Trustees also noted that, according to preliminary estimates, the Part B Medicare premium will remain unchanged in 2014.

Lower projected Medicare Advantage program costs also played a role in the CMS's updated expectations for longer Medicare solvency. The report found that certain provisions of the Affordable Care Act would help reduce spending in this program by more than previous estimates. However, the Medicare Trustees believe that these lower spending projections may be partially offset by reductions in tax revenue.

In 2012, Medicare covered 50.7 million Americans. Roughly 27 percent of these beneficiaries enrolled in Part C private health plans that contract with Medicare to deliver Part A and Part B health services. Total expenditures in 2012 were $574.2 billion, compared to $536.9 billion in total income, the report found.

The Medicare Trustees include Treasury Secretary and Managing Trustee Jacob Lew, Health and Human Services Secretary Kathleen Sebelius, Acting Labor Secretary Seth Harris, and Acting Social Security Commissioner Carolyn Colvin. The President also appoints two more Trustees who are public representatives. These two members must receive Senate confirmation. Charles Blahous III and Robert Reischauer began serving on Sept. 17, 2010. CMS Administrator Tavenner serves as Secretary of the Board.

The report was published on the Centers for Medicare & Medicaid Services website.

More information

The U.S. National Library of Medicine has more about Medicare.

Health NewsCopyright © 2013 HealthDay. All rights reserved.

Please be aware that this information is provided to supplement the care provided by your physician. It is neither intended nor implied to be a substitute for professional medical advice. CALL YOUR HEALTHCARE PROVIDER IMMEDIATELY IF YOU THINK YOU MAY HAVE A MEDICAL EMERGENCY. Always seek the advice of your physician or other qualified health provider prior to starting any new treatment or with any questions you may have regarding a medical condition.


Latest News

CNY Brain Aneurysm Awareness Campaign Raises Funds for Crouse Neuroscience Institute
more >

MedEx Bedside Prescription Delivery Service

Free service offers convenience, patient education at discharge.
more >

Weight Loss Surgery

Is it right for you? Attend a free information seminar held twice monthly.
more >

Quality at Crouse

See how Crouse Hospital strives to provide the best in patient care.
more >

Cheer Up That Special Someone

Say get well or welcome a new arrival with a gift purchased right at Crouse.

more >

Make an Online Donation Now

Your donation of any amount helps support Crouse services & programs in a meaningful way.
more >

Shop Online Now

Say get well, thinking of you or welcome new baby with a unique gift from the Crouse Gift Shop.

more >