tci Medicare Compliance & Reimbursement - 2003 Issue 12

Medicare: MEDICARE TAB KEEPS GROWING, ALONG WITH PLANS FOR REFORM

The Medicare Part A Hospital Insurance Trust Fund will become insolvent in 2026, four years earlier than projected last year, the Medicare trustees reported March 17. The culprits: 2002 payroll tax revenues that were 4 percent below expectations, and hospital inpatient expenses 2 percent above expectations, primarily due to more admissions and more complex cases. Rep. Pete Stark (D-CA) counseled against overreacting, pointing out that the fund’s 23 remaining years of solvency was still the third-best projection in history. However, the fund will begin spending more than it takes in through payroll taxes in 2013, three years earlier...

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