FAQs on Medicare Financing and Trust Fund Solvency

In discussions of Medicare’s financial condition, attention frequently centers on one specific measure —the solvency of the Medicare Hospital Insurance (HI) trust fund, out of which Medicare Part A benefits are paid. The HI trust fund depletion date is only one way of measuring Medicare’s financial status and doesn’t present a complete picture of total program spending and revenues, but it does indicate whether there is an imbalance between spending and financing for inpatient hospital and other benefits covered under Medicare Part A. These FAQs answer key questions about Medicare financing and trust fund solvency.

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Source: https://www.kff.org/medicare/issue-brief/faqs-on-medicare-financing-and-trust-fund-solvency/

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