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Medicare Could Be Insolvent in 2024: How to Prevent It

May 17, 2021

From the nextavenue website

Even as America’s balkanized health care system struggles to deal with the pandemic, the coronavirus lurks behind another looming crisis. Medicare’s Hospital Insurance Trust Fund is projected to become insolvent in 2024 or 2026 — just three to five years from now. Yet you probably haven’t heard about that.

Spending for Medicare, the federal health insurance program for the 52.6 million Americans 65+, was expected to exceed revenue in the trust fund even before the pandemic. But COVID-19 has worsened Medicare’s finances because people losing their jobs has meant a drop in the program’s payroll-tax revenue. And last year’s COVID-19 relief CARES Act tapped $60 billion from the Medicare trust fund to help hospitals get through the pandemic. Meantime, Medicare rolls have been growing with the aging of the U.S. population.

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