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Medicare to exhaust itself financially by 2018

Ambulatory Surgery Reimbursement Update, May 9, 2006

The Centers for Medicare & Medicaid Services (CMS) released its annual Medicare Trustees Report, which shows Medicare's financial outlook declined compared to last year's estimate. The report predicts the trust fund for Medicare will run out of money in 2018-two years sooner than predicted a year ago.

This change results from slightly higher costs in 2005 than previously estimated and some upward revisions in the short-range assumptions about use of hospital insurance services, according to a CMS press release.

The report was delayed earlier this year because the Senate had not confirmed two Medicare trustees President Bush reappointed to second four-year terms, according to Kaiser Daily Health Policy Report. Leaders of both parties have said they prefer to follow the precedent of no more than one term for public trustees and have called for the two trustees, Thomas Saving and John Palmer, to resign.

To read the Medicare Trustees Report, click here.

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