The Medicare Board of Trustees submitted their 2012 annual report to Congress, dated April 23, 2012. Interestingly, the federal Social Security Act requires the board report annually to Congress on the financial and actuarial status of the Medicare Trust Funds. This 2012 report is the 47th report that has been submitted.
Some key highlights of the report are:
- Large uncertainties in the sustainable growth rate (SGR) formula, the “Affordable Care Act”, and other issues could mean that future Medicare costs could be much higher than those shown in the “current-law projection”.
- In 2011, Medicare covered 48.7 million people; 40.4 million aged 65 and older and 8.3 million disabled.
- Total expenditures in 2011 were $549.1 billion.
- The estimated exhaustion date for the Hospital Insurance (HI) trust fund (aka Medicare Part A), remains at 2024. HI expenditures have exceeded income since 2008 and have not met the Trustees’ formal test of short-range financial adequacy since 2003.
- The Supplemental Medicare Income (Parts B and D) trust fund is adequately funded over the next 10 years and beyond because premium and general revenues are reset each year to match expected costs.
The Acting CMS Administrator Marilyn Tavenner said, “The Trustees Report tells us that while Medicare is stable for now, we have a lot of work ahead of us to guarantee its future.”
To view the actual report, click here.