Medicare Trustees Project Longer Solvency Period for Hospital Trust Fund

more+
less-

A May 31, 2013 report from the Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds projects that the Medicare Hospital Insurance Trust Fund will remain solvent through FY 2026, two years longer than the Trustees’ report projected last year.  The report noted that lower Medicare Advantage plan bids and reduced use of skilled nursing facilities contributed to the improved outlook, and projected continued cost reductions as provisions in the Affordable Care Act, such as continued productivity adjustments to market basket updates, take effect.  However, the report projects that the Trust Fund costs will begin exceeding revenues by 2021.  The report also states that the Supplementary Medical Insurance (SMI) Trust Fund, which provides Parts B and D payments, remains on unstable financial footing – even assuming that Congress does not intervene to once again delay cuts to physician payments under the Medicare Sustainable Growth Rate.  The report estimates that costs for the SMI Trust Fund are expected to rise from 2 percent of GDP in 2012 to 3.3 percent in 2035.

The report is available here.

Reporter, Christopher Kenny, Washington, D.C., + 1 202 626 9253, ckenny@kslaw.com.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×