June 11, 2013

Trustees' report confirms Medicare not in crisis

Source: NYSUT Retiree Services

The 2013 Medicare Trustees Report was released in early June. Its findings confirm that Medicare is not in crisis. In fact, the trustees found that the Medicare Hospital Insurance (HI) Trust Fund is solvent through 2026—two years later than reported last year. Also, the Trustees projected that the standard Part B premium, which is about $105 in 2013, will remain unchanged in 2014, keeping out-of-pocket costs for beneficiaries down. 

According to the Centers for Medicare and Medicaid Services (CMS), a number of factors have contributed to the increased solvency of the HI Trust Fund, including lower-than-expected Part A spending in 2012 and lower Medicare Advantage costs. As a result, the HI Trust Fund will be able to pay 100 percent of Medicare Part A inpatient claims for the next 13 years. In addition, the Supplemental Medical Insurance Trust Fund for outpatient services (Part B) and prescription drugs (Part D) remains on firm financial footing.

Download the Trustees Report (pdf)