WASHINGTON (AP) — The government said Friday that Medicare’s giant hospital trust fund will be exhausted in 2026, two years later than projected last year, while the date that Social Security will exhaust its trust fund remained unchanged at 2033.
The latest projections were included in the annual report of trustees of the trust funds. The new report warned that despite the small improvement in Medicare, both it and Social Security face significant funding challenges as the giant baby boom generation continues to retire. Currently, 58 million Americans are receiving Social Security benefits.
“Under current law, both of these vitally important programs are on unsustainable paths,” Robert D. Reischauer, one of two public trustees, told reporters at a news conference.
The reasons given for the improved financial outlook for Medicare were an overall slowdown in the rate of increase in health care spending, particularly on skilled nursing care, as well…
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