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MEDPAC Report Calls for Immediate Medicare Tax Increase
MedPAC, the independent nonpartisan legislative branch agency established by the Balanced Budget Act of 1997 to provide the U.S. Congress with analysis and policy advice on the Medicare program, released its March 2020 report to Congress last Friday. Citing a projected depletion of the Hospital Insurance Trust Fund by 2026, the agency recommended an immediate increase in the Medicare payroll tax rate from 2.9% to 3.7%. As an alternative, an 18% reduction in Part A spending levels was suggested. With either of these actions, the Trust Fund could be kept solvent for the next 25 years, according to the report. Read a summary of the MedPAC report by Alia Paavola of Becker’s Hospital CFO Report here…
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