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Medicare Solvency

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Medicare Solvency: The Medicare Trust Fund
Leanne Terry
HCM 500: The U.S. Healthcare System
Colorado State University – Global Campus
Dr. Michelle Rose
September 13, 2015

Medicare Solvency: The Medicare Trust Fund Medicare is a government funded program within the United States that provides health insurance to individuals who are sixty five years and older, regardless of income or medical history, those that have end-stage renal disease, and/or individuals who are under sixty five years old and have disabilities for which they are entitled to Social Security benefits. The Center for Medicare and Medicaid Services (2015), which operates both Medicare and Medicaid, states that Medicare provides coverage for over 55 million beneficiaries. With the aging of the general population, the number of beneficiaries will continue to rise.
Part A of Medicare, also known as the Hospital Insurance (HI) covers hospital inpatient services along with inpatient services at psychiatric hospitals, rehabilitation facilities, hospice care, home health visits, and skilled nursing facility services. “Medicare part B, the supplementary medical insurance (SMI) portion, is a voluntary program financed partly by general tax revenues and partly by required premium contributions” (Shi & Singh, 2015). Another type of supplemental insurance plan that Medicare beneficiaries can purchase is Medigap, a private insurance that has high out-of-pocket costs to cover Medicare deductibles and copayments.
“Due to the high number of beneficiaries combined with the high deductibles, copayments, and premiums, Medicare consumes over one-fifth of national health expenditures” (Shi & Singh, 2015). With the establishment of Medicare in 1965, a Board of Trustees was appointed the responsibility of two Medicare trust funds; the Hospital Insurance (HI) trust fund for Part A funding and the…...

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