Medicare Solvency: The Medicare Trust Fund
Leanne Terry
HCM 500: The U.S. Healthcare System
Colorado State University – Global Campus
Dr. Michelle Rose
September 13, 2015

Medicare Solvency: The Medicare Trust Fund Medicare is a government funded program within the United States that provides health insurance to individuals who are sixty five years and older, regardless of income or medical history, those that have end-stage renal disease, and/or individuals who are under sixty five years old and have disabilities for which they are entitled to Social Security benefits. The Center for Medicare and Medicaid Services (2015), which operates both Medicare and Medicaid, states that Medicare provides coverage for over 55 million
“The 2013 projection from the board extends Medicare’s solvency through 2026” (Davis, 2014). The main reduction focus of the ACA is on hospital reimbursement, which accounted for thirty two percent of all Medicare benefits in 2012. The ACA came at a critical time for health care spending. Without this reform,

the United States would continue to spend unsustainable amounts within the next few decades and American’s would suffer from higher health care costs as well. “The combination of misaligned incentives and fragmented health care delivery have contributed to the U.S. having high per capita and total health care spending than any other industrialized country” (CMS, 2010).
One of the major challenges for Medicare is financing care for future generations. With the increasing prices of health care services, increasing volume and utilization of health care services, and new technologies, health care spending will continue to rise for those that are insured by government funded programs and private insurance. Moving forward, policymakers and experts must find a way to make the necessary changes to ensure the long-term viability of the Medicare program. With an insolvency in the Medicare trust funds, over 55 million American’s will not be able to pay for medical services needed.
Medicare is the most successful program of the federal