tci Part B Insider - 2004 Issue 13

News You Can Use: MEDICARE FINANCES SLIP

Annual report says insolvency is closer than previously estimatedA gloomy financial forecast for Medicare could mean even further reforms are on the way. In their annual report released March 23, Medicare's trustees projected the hospital insurance fund will run dry in 2019 -- that's seven years earlier than last year's 2026 insolvency projection. According to the report, four years of the difference in the new prediction are due to higher spending and lower tax revenues in 2003 than planned, along with budget crunches caused by the Medicare Modernization Act. Total costs for Medicare's hospital and supplementary medical insurance...

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