Medicare Part A Facing Insolvency

Actually, it’s no secret that Medicare Part A – which is coverage for inpatient hospitalization services – is facing big fiscal issues in the not-to-distant future. For years, the Medicare Trustees have been warning Congress that unless they act soon, the Medicare Part A Trust Fund will be depleted and insolvent by 2026. Not surprisingly, the COVID-19 pandemic has exacerbated the problem by decimating the ranks of those contributing to the Part A trust fund (think about job losses during the pandemic), which the Congressional Budget Office believes will accelerate insolvency to an even earlier year. A consequence of Medicare Part A trust fund insolvency is a cut in reimbursements to medical service providers, sure to reduce availability of healthcare services for all Americans, especially senior citizens. Not a bright outlook, as so clearly stated in this Chicago Tribune Op-Ed piece by Robert Moffit which succinctly suggests that Congress must address this issue soon. Click here to read more.

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