Payments to healthcare providers from the Medicare Hospital Insurance Trust Fund will be covered for longer than previously forecast, says the fund's annual financial report.
Lower-than-expected spending for most healthcare service categories means that the federal Medicare trust fund will not be exhausted until 2026, according to the Old Age, Survivor's and Disability Insurance (OASDI) board of trustees.
The report confirms that Medicare Part B, which pays outpatient expenses, and Part D, which provides access to prescription drug coverage, will remain adequately financed indefinitely, in accordance with current federal law.
While the Medicare Hospital Insurance Trust Fund will be able to meet its financial obligations for two years longer than projected in last year's report, the trustees recommend that "lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes and give workers and beneficiaries time to adjust to them."
Social Security benefits are projected to be exhausted in 2033.