Medicare fund’s outlook improves on stronger economy, but long-term challenges persist

Hill May 6, 2024
Nathaniel Weixel

The financial outlook for Medicare improved in the past year, and the program’s funding to pay all the costs for hospital services of older and disabled beneficiaries won’t run out until 2036, five years later than last year’s estimated date.

A stronger than expected economy and lower expenditures on services such as inpatient hospital and home health led to the unexpected good news for Medicare. The report also credited a policy change that lowered Medicare Advantage spending.

Just two years ago, the trust fund was projected to be depleted as early as 2028.

Once the program’s reserves are depleted, it would only be able to cover 89 percent of scheduled benefits, according to the annual report from...

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