Medicare Trust Fund Is Not Sustainable Long-Term, HHS Warns
The agency estimates that the ratio of workers paying taxes to beneficiaries eligible for Medicare will drop from 3:1 in 2016 to 2:1 by 2091, even as health care costs continue to rise.
Modern Healthcare:
HHS Concerned About Medicare's Long-Term Sustainability
A shrinking taxpayer base, swelling beneficiary numbers and growing healthcare costs all threaten Medicare's long-term viability, according to the HHS, and the agency warned the program would need to increase its revenue or drastically reduce benefits to balance its budget. In a wide-ranging report issued last week, HHS said the Medicare trust fund "is not projected to be sustainable over the long term with the projected tax rates and expenditure levels." (Dickson, 11/20)
Meanwhile, for consumers looking at their Medicare coverage options --
The Washington Post:
PowerPost Q&A For Federal Workers: Medicare And The FEHBP
For federal retirees with both, Medicare pays first and the FEHBP covers some things Medicare doesn’t, similar to a Medigap plan. In that situation, “individuals should consider what additional benefits they are getting for a higher-priced plan, especially when you’re paying for the benefit of FEHBP but using it as a secondary insurance provider,” says the National Active and Retired Federal Employees Association. (Yoder, 11/21)
