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Often Overlooked: Medicare Insolvency - CNBC
With most media reports focusing on Social Security’s financial issues expected to hit in the mid-2030s, an equally troubling financial problem is often overlooked – Medicare’s Trust Fund for hospitalization coverage is projected to run dry in 2028, a scant 5 years from now. Medicare Part A, which is coverage for inpatient hospitalization services, is funded by contributions from the earnings of American workers. If the Part A trust fund runs dry, as is currently projected for 2028, Medicare would be able to pay only about 90% of its obligations, an obviously a troubling situation. The good news is that Congress recognizes the urgency of the issue and has already empaneled a group to study what needs to be done to resolve Medicare’s looming financial problems and, hopefully, provide recommendations to resolve the problem. This CNBC article by Sarah O’Brien explains.