Medicare Expected to Remain Solvent for Two Years Longer than Previously Projected

The Medicare Trustees just announced that the Medicare Hospital Insurance trust fund is expected to remain solvent for two years more than recently projected, meaning until the year 2026. Marilyn Tavenner, Administrator of the Centers for Medicare and Medicaid Services (CMS), stated that, under the Affordable Care Act, CMS is taking steps "to improve the delivery of care for seniors with Medicare," which aim to "reduce spending while improving the quality of care, and are an important down payment on solving Medicare’s long term financial issues."

According to CMS, other factors that contributed to the improved outlook include lower Part A spending in the past year and lower projected costs of the Medicare Advantage program. The Affordable Care Act is expected to reduce spending in the Medicare Advantage program by a higher amount than previously projected. In addition, Medicare spending per beneficiary has been growing more slowly in recent years.