April 23, 2020
On April 22, 2020, the Medicare Board of Trustees released their annual report for Medicare’s two separate trust funds — the Hospital Insurance (HI) Trust Fund, which funds Medicare Part A, and the Supplementary Medical Insurance (SMI) Trust Fund, which funds Medicare Part B and D. The report found that the HI Trust Fund will be able to pay full benefits until 2026, the same as last year’s report.
The Trustees project that total Medicare costs (including both HI and SMI expenditures) will grow from approximately 3.7% of GDP in 2018 to 5.9% of GDP by 2038, and then increase gradually thereafter to about 6.5% of GDP by 2093.
This report does not take into consideration the impact of the COVID-19 pandemic on the future of the Medicare Trust Fund.
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