According to the medical insurance board, the hospital insurance trust fund of the medical insurance plan is still expected to be used up in 2026. The latest report to Congress.
Despite the impact of the Covid-19 pandemic, the prognosis of medical insurance bankruptcy remains the same as in the past few years. 2018, 2019 and 2020 Report all estimates The trust fund will be exhausted in the next five years.
Although 2026 is not far away, the new report’s forecasts actually provide some breathing room.A report issued by the Congressional Budget Office last September Predicted Due to the pandemic, the hospital insurance trust fund will go bankrupt in 2024.
According to a recent report, health insurance covers 62.6 million people in 2020, of which 8.5 million are disabled. Last year’s total expenditure reached 925.8 billion U.S. dollars and total revenue was 899.9 billion U.S. dollars.
Due to massive accelerations and advance payments, expenditures from the Hospital Insurance Trust Fund exceeded revenues of US$60.4 billion, which is used to pay for inpatient hospital services, hospice and skilled nursing facilities, and home health services after hospitalization. These payments will be repaid in 2021 and 2022, which will result in a small deficit in 2021 and a surplus in 2022.
But after that, the trustee expects a deficit in all future years until the trust fund is exhausted in 2026.
Over the past five years, hospital insurance trust fund expenditures have grown by an average of 7.6% per year, while non-interest income has grown by 5.2%. In the next five years, the average annual growth rate of expenditure is expected to be 3.1%, and the average annual growth rate of non-interest income is 4.6%.
According to the report, on the other hand, the Supplementary Medical Insurance Trust Fund is expected to receive sufficient funds in the next 10 years and beyond. The fund supports Part B of Medicare, which helps pay for doctors, outpatient hospitals, and family health services, and Part D of Medicare, which provides subsidies for drug insurance.
The fund will be fully funded because the premium income and general income of Part B and Part D will be readjusted every year to cover expected costs and ensure a contingency reserve for Part B.
According to the trustee, the report indicates that there is an urgent need to amend the legislation to solve the financial challenges of medical insurance.
They wrote that the health sector needs to transition to a more effective medical service model and other changes so that medical insurance beneficiaries receive the same quality and accessibility of medical care as private medical insurance beneficiaries.
In addition, this year’s report triggered a warning about medical insurance funding, requiring the president to submit proposed legislation to Congress in response to the warning, and asking Congress to review the legislation as soon as possible.
Photo: Jaiz Anuar, Getty Images
