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Medicare Solvent Through 2029


The Trustees for the Medicare Trust recently reported that the trust fund for hospital coverage (Part A) is now solvent through 2029. While solvency for a little over ten additional years sounds grim, 2029 is actually an improvement from last year’s report which predicted solvency through only 2028. The report credits the decreased deficiency to lower spending and inpatient hospitalization among other factors. Plans need to be cognizant of Medicare’s funding issues because they could significantly impact plans’ retired participants. In addition, Medicare may consider revising the Coordination of Benefit (COB) rules.


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