Projected Drop In Medicare Spending Extends Hospital Insurance Trust Fund Solvency By Four Years

On July 28, 2014, the federal Centers for Medicare & Medicaid Services (CMS) announced that the Medicare Trustees projected that a drop in health care spending growth in 2013 was likely to continue for several more years, and that due to this reduction, the trust fund that finances Medicare’s hospital insurance coverage will remain solvent until 2030 – four years beyond what was projected in last year’s report. During the past four years, per capita Medicare spending growth has averaged 0.8% annually, much more slowly than the average 3.1% annual increase in per capita gross domestic product . . .