Medicare trust fund projected to last until 2026 as health costs drop
Falling health-care costs are brightening the financial outlook for Medicare, extending the life of the trust fund that supports the program until 2026 — two years later than previously forecast.
The new projections, released Friday by the program’s trustees, credit President Obama’s Affordable Care Act in part for the improvement in the finances of the federal health insurance program for the elderly. The act’s limits on Medicare Advantage, a more expensive form of Medicare run by private insurers, are proving more effective than previously forecast, the report said.
Lori Montgomery 9:40 AM ET
Trustees partly credit Affordable Care Act; Social Security’s funds are still seen paying full benefits until 2033.
The trustees also cited lower-than-expected spending in “most .?.?. service categories — especially skilled nursing facilities,” a development that is not well understood. Costs have been slowing throughout the health-care industry, partly because of the recent recession, economists say, but also because of what appear to be more fundamental changes aimed at reducing waste and improving health outcomes.
The trustees reported no such gains in the finances of Social Security, but no significant deterioration, either. The Social Security trust funds will have enough cash to pay full retirement and disability benefits until 2033, the report said.
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I left out conservatively slanted parts...see here if you really want to: more
edit: corrected I attributed part of the article to the wrong weeny head. Sorry.
