The Center on Budget and Policy Priorities, a non-partisan research and policy institute, reported in July that claims that Medicare will be insolvent in 2026 are misleading and just not true, unless we maintain the current Congress.
Medicare is facing financial challenges, especially after the Trump administration and Congress passed the deficit-spiking tax reform bill for the wealthy.
Medicare’s Part A, Hospital Insurance (HI) trust fund (used to pay the costs to hospitals), will have revenue ups and downs in the next 25 years, but will be solvent. These shortfalls can be salvaged by slowing growth in hospital costs and ending overpayments to pharmaceutical companies.
Medicare coverage for physician and outpatient costs (Part B) and the prescription drug benefit (Part D) do not face insolvency. It would be helpful if we could reform the measure from 2003 that banned negotiating lower drug prices for Medicare. President Trump dropped his campaign vow to allow Medicare to negotiate drug prices. Medicare has been the leader in reforming the healthcare payment system to improve efficiency and has outperformed private health insurance in holding down the growth of health costs.
There have been reports projecting impending insolvency for over four decades, but Medicare has always paid the benefits owed because presidents and Congress have taken steps to keep spending and resources in balance. That’s why we must be very conscious of the choices we make when voting this November. Policymakers can create a healthier America or create financial ruin.
Jan Phillips
Durango
