Medicare 2016 Trustee Report – Trust Fund Outlook has Deteriorated

The Obama Administration has released its latest financial review of the “Medicare Trust Fund” and it is not good news for seniors. Under existing law, the trustees announced that the fund would be depleted in 2028, two years earlier than projected in last years report. The trustees reported that the Fund outlook had deteriorated because of changes to their assumptions and expectations. Medicare actuaries now expect higher  inpatient hospital usage, as well as lower payroll tax revenue resulting from slower  growth in wages. It is now anticipated that “Automatic Medicare Cuts” required by law could take place for the first time in 2019. Donald Trump, the presumptive Republican presidential candidate has said he will not cut Medicare benefits to seniors. Hillary Clinton, the presumptive Democratic presidential candidate she would reduce health care costs and ask the wealthy to contribute more.