The Medicare Trustees have just projected that the program’s Part A (Hospital) fund will be able to pay 100% of scheduled benefits until 2036 — a full five years later than estimated by the trustees last year.
“It’s great news that the Part A trust fund has an additional FIVE years before it becomes depleted, partly because of the unexpected strength of the U.S. economy. But current and future seniors expect action to keep the trust fund solvent for the long-term,” said Max Richtman, President & CEO of the National Committee to Preserve Social Security and Medicare. “Recent rules from the Biden administration helped to extend the solvency of the Part A trust fund, showing that the President is heading in the direction on this crucial issue.”
We support President Biden’s plan to strengthen Medicare’s finances, as laid out in his FY 2024 and 2025 budgets. His plan would bring more revenue into the program, rather than cutting benefits as some Republicans have proposed. Building on the prescription drug pricing reforms in the Inflation Reduction Act, the President’s budget proposal would lower Medicare’s costs — and some of those savings would be used to extend the solvency of the Part A trust fund.
No discussion of Medicare’s trust fund solvency would be complete without mention of Medicare Advantage (MA), which has been a drain on the program’s finances. Private MA insurers have been overbilling Medicare to maximize their own profits, including dishonest practices such as “upcoding” and wrongly denying patients’ claims and pre-authorizations. Here again the Biden administration has taken corrective action — updating rules to hold MA plans accountable, reducing overpayments to insurance companies, and increasing transparency, including those misleading Medicare Advantage television ads.
“We urge Congress to support President Biden’s Medicare proposals to strengthen the program’s finances. These are common sense solutions that help, not hurt, seniors,” said Richtman.
Beyond trust fund solvency, the Trustees reported that the standard Medicare Part B premium will rise next year to $185 per month – a $20 or 6 percent monthly increase. “Any premium increase is a burden to seniors living on fixed incomes, who too often must choose between paying monthly bills or filling prescriptions and getting proper health care. Seniors need relief from rising premiums and skyrocketing out-of-pocket health care costs. Fortunately, the Biden administration is taking steps to reduce those costs,” said Richtman.
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Media Inquiries to:
Walter Gottlieb