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Federal budget: Medicare Trustees' Report Shows Need For Reform
The sooner financing problems are addressed, the more flexible the solutions can be
The most recent Medicare trustees' report calls for comprehensive reform to address the program's long-term financing issues, according to the American Academy of Actuaries. Medicare's hospital insurance expenditures exceed income from payroll taxes, and Medicare must also rely on interest accrued on trust-fund assets, the program's trustees say.
Beginning in 2010, these expenditures will exceed income including interest, and Medicare will draw on its hospital insurance trust-fund assets. The trust fund is projected to be depleted by 2019, when tax revenues would cover only 78 percent...
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