The Medicare Board of Trustees' financial report for 2009 is out and it doesn't look good.
Here's a summary:
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The hospital trust fund is not adequately financed over the next 10 years. At the beginning of 2009 the assets of the fund were $321 billion and are projected to be exhausted during 2017, under the intermediate assumptions. That's two years
earlier than last year's report.
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In 2008, 45.2 million people were covered by Medicare: 37.8 million aged 65 and older, and 7.4 million disabled. About 22% of beneficiaries have chosen to enroll in private health plans that contract with Medicare to provide health services. Total benefits paid in 2008 were $462 billion. Income was $481 billion, expenditures were $468 billion, and assets held in special issue U.S. Treasury securities grew to $381 billion.
Sen. Charles Grassley (R-Iowa) released this statement shortly after the report's release:
"The message of the trustees' report is loud and clear. We need to act now to address Medicare's fiscal sustainability. Kicking the can down the road isn't an option anymore because we're at the end of the road. ... some are saying we should create a new government-run health insurance plan. When we can't afford the public health plan we have already, does it make sense to add more? What's more, a government-run plan would push every other option out of existence and people wouldn't be able to keep the health care option they have today, if they want to, as the President has promised. Instead, we need to establish an individual and small group insurance market that works for consumers. We need to prohibit insurers from denying coverage to people with pre-existing medical conditions or charging higher premiums to people who are sick. If we create a government-run program that's unaffordable and unsustainable, it won't do anyone any good."
Update: Sen. Max Baucus (D-Mont.) says, "There is a direct connection between the rising cost of health care and the long-term stability of the Medicare program, and this report underscores the urgency of action on comprehensive health care reform this year. One of my most important goals for health reform is to reduce the skyrocketing costs that are hurting families, business, and the Medicare program. ... This report shows us that our economic recovery effort is just as pressing today as it was six months ago."