Medicare was enacted in 1965 to provide health insurance to individuals age 65 or older. It also provides coverage to younger people with certain disabilities including permanent kidney failure. The federal government serves as both the trustee and executor of the funds which are collected primarily through taxes and Medicare premiums. The Center for Medicare and Medicaid (CMS) is the federal agency tasked with overseeing the program.
Currently, Medicare outlays exceed $500 billion annually. The excess of estimated liabilities over available revenues is currently estimated to be at least $40 trillion.
Consistently Framing The Design and Analysis Of Health Care Proposals
Reasonably designed, priced and managed health care makes compelling economic and moral sense. Our current Medicare system and many related parts of our health care system are not reasonably designed, reasonably priced, nor reasonably managed. To remedy this situation, click on this article to learn about important tenets we suggest as a guiding foundation for current and future proposals.
Medicare: Insolvency Projections - A Congressional Research Services Report
Since the inception of Medicare in 1966, the HI trust fund has always faced a projected shortfall. The insolvency date has been postponed a number of times, for example, through legislative changes that have had the effect of restraining growth in program spending. The 2021 Medicare Trustees Report projects that, under intermediate assumptions, the HI trust fund will become insolvent in 2026, the same year as estimated in the prior three years’ reports.