Medicare trustees project Hospital Insurance Trust Fund to become insolvent in 2033

The Hospital Insurance Trust Fund has been projected to become insolvent in 2033, according to the Medicare Board of Trustees' annual report released June 9. The fund pays benefits under Medicare Part A, which covers inpatient hospital services, care provided by skilled nursing facilities, home health care and hospice care. The projections assume that the trust fund will receive lower levels of revenue due to recent tax law changes. "The projections in this year's report continue to demonstrate the need for timely and effective action to address Medicare's remaining financial challenges - including the HI trust fund's projected depletion, this fund's long-range financial imbalance, and the rapid growth in Medicare expenditures," the trustees wrote.