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Bullish Medicare Projection Doubted
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A new report by Medicare trustees found that the Medicare hospital trust fund would face insolvency by 2029, which is 12 years after the projection made last year. But Medicare's chief actuary questioned this by saying that this assumes cuts in payments to medical providers in the health reform bill would be implemented. Not realistic he says, considering that many doctors would drop out of Medicare causing difficulty for seniors. After 2029 Medicare would be able to pay 85% of the benefits according to this report. Separately the Social Security fund is expected to need a $41 billion cash infusion, with more paid out in benefits, than collected in tax receipts in 2010 and 2011, with this situation getting worse by 2015.
Medicare.
06/14/2009
Medicare, funding and government deficits. Quality of care, education and lifestyle choices.
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The Social Security Fund is expected to need an infusion of $41 billion in 2010, with more coming out than going into the fund in 2011, and the situation worsening by 2015.
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