Medicare’s hospital insurance fund is expected to become insolvent in 2024, a projection unchanged from last year, according to a report by the board of trustees for Medicare and Social Security.
According to the report, Medicare’s hospital insurance has been paying out more than it has received since 2008. In 2011 alone, Medicare used $27.7 billion in trust fund assets to cover hospital insurance expenses.
The report predicted that over the next 10 years the fund’s expenditures would grow by an annual average of 5.3% and that its income would grow by 6% on average. The report notes that Medicare’s hospital insurance trust fund has failed to meet the trustees’ formal test of short-range financial adequacy every year since 2003.