2021 Medicare Trustee Report-formerly known as “Annual report of the Board of Directors of the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund“–There is some grim news. Expenditure in 2020 ($925.8 billion) exceeds revenue ($899.9 billion). What is more worrying is that the estimated exhaustion date of the Medicare (hospital insurance) trust fund is 2026. Good The news is that this is the same year as the previous year; the bad news is that as the baby boomers continue to retire, medical insurance will soon suffer losses. In particular, the proportion of medical insurance expenditures in the US economy is expected to continue to rise.
…The trustee expects that spending will grow faster than the total income of workers or the economy as a whole in the next few years, and that the percentage of spending as a percentage of GDP will increase from 4.0% in 2020 to 6.5% in 2095
Please note that the above items are based on current laws.According to the “alternative plan” of the medical insurance trustee, this may be more realistic, and the cost will actually rise to 8.5% of GDP in 2095.
Program overview
In 2020, Medicare covers 62.6 million people. About 40% of them are covered by Medicare Advantage (Medicare Part C) plans.
