Yesterday, the annual Medicare Trustees Report was released -a time for political debate, grandstanding and chagrin. The Trustees report that Medicare expenditures were $408 billion in 2006, or 3.1 percent of gross domestic product (GDP), and are projected to increase to over 11 percent of GDP in 75 years.
The big news: Medicare’s Hospital Insurance Trust Fund is projected to be exhausted in 2019, one year later than estimated in last year’s report. This change results from slightly higher projected income and slightly lower projected expenditures than shown in last year’s report. HI expenditure growth is estimated to average 7.2 percent per year over the next 10 years.
For a full copy of the press release and the report click here.