Treasury, HHS: Medicare Hospital Insurance Trust Fund Solvent Two More Years, to 2028
Even as the Hospital Insurance (HI) Trust Fund, or Medicare Part A, is becoming depleted over time, the Department of Health and Human Services (HHS) and several other agencies focused on the solvency of the Medicare program, announced on Thursday, June 2, that “The Hospital Insurance (HI) Trust Fund, or Medicare Part A, which helps pay for services such as inpatient hospital care, will be able to pay scheduled benefits until 2028, two years later than reported last year. At that time, the fund’s reserves will become depleted and continuing total program income will be sufficient to pay 90 percent of total scheduled benefits.”
The announcement came in the form of a press release posted to HHS’s website, and began thus: “Following a meeting of the Social Security and Medicare Boards of Trustees, the U.S. Department of the Treasury—joined by Departments of Health and Human Services and Labor, the Centers for Medicare & Medicaid Services, and the Social Security Administration—released the annual Social Security and Medicare Trustees Reports.”
That announcement was made as HHS released the “2022 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds,” known in its short form as the Medicare Trustees Report,” the entirety of which can be read here.
“The Biden-Harris Administration is committed to protecting and strengthening Social Security and Medicare which represent promises to America’s seniors and play a vital role in our economy,” Secretary of the Treasury Janet L. Yellen said in a statement contained in the release. “This latest report shows an improvement in the financial position of Social Security and Medicare, reflecting the strong economic recovery and growth in the last year. However, in the coming decades it will be vital for Congress to take steps to put Social Security and Medicare on solid financial footing for the long term.”
“The Biden-Harris Administration understands that Social Security is a critical part of a secure retirement,” Secretary of Labor Marty Walsh said. “As the nation’s economic recovery continues, we will continue working to ensure that America’s workers, retirees and their families are able to enjoy an economically secure and dignified retirement.”
“For almost sixty years, Medicare has been a lifeline and steady foundation for generations of Americans,” said Health and Human Services Secretary Xavier Becerra. “It is critical that we continue to protect this vital program that serves millions of seniors and individuals with disabilities. The Biden-Harris Administration will continue to strengthen Medicare and ensure it remains strong for current and future beneficiaries.”
“We are committed to running a sustainable Medicare program that provides high quality, person-centered care to older Americans and people with disabilities,” said CMS [Centers for Medicare and Medicaid Services] Administrator Chiquita Brooks-LaSure. “Medicare trust fund solvency is an incredibly important, longstanding issue and we are committed to working with Congress to continue building a vibrant, equitable, and sustainable Medicare program.”
“It is important to strengthen Social Security for future generations. The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “Social Security will continue to be a vital part of the lives of 66 million beneficiaries and 182 million workers and their families during 2022.”
A fact sheet summarizing both he Medicare and Social Security reports can be found here.
