Health Affairs June 10, 2020
In the midst of the COVID-19 pandemic, it is worth paying attention to the Medicare Part A Trust Fund. In the most recent Actuaries’ report issued in April 2020, the Trust Fund was projected to be depleted in 2026. COVID-19 is causing the Medicare Part A program and the Hospital Insurance (HI) Trust Fund to contend with large reductions in revenues due to increased unemployment, reductions in salaries, shifts to part-time employment from full time, and a reduction in labor force participation. In addition to revenue declines, there was a 20 percent increase in payments to hospitals for COVID-related care and elimination of cost sharing associated with treatment of COVID. Furthermore, a part of the hospital relief effort, the Advance...