Why Is The U.S. Still Losing $1.8 Trillion A Year To Medicare Part D?

Medicare Part A has been struggling to recover from the recession.

The Medicare trust fund is expected to run out of money by 2024. 

The problem is compounded by an increasing number of hospitals, drug companies, and other health care providers who have shifted their focus to expanding coverage to lower-income Americans, according to a new report from the Center for Medicare and Medicaid Services.

The report, titled “Unpaid Part D: The Continuing Threat to Medicare’s Financial Stability,” estimates that by 2024, Medicare Part C will run out, leaving the trust fund with just $1 trillion left. 

That’s just $200 billion short of the $1,400 billion in projected Medicare Part B funding the administration has promised to cover the uninsured. 

“The problem of the rising cost of coverage has created a vicious cycle of spiraling increases in the trust funds liabilities, and the inability to pay for the costs of coverage, leading to increased spending for coverages that do not cover the costs,” the report says.

“In other words, a spiraling spiral of rising premiums, increasing costs, and a rising burden of coverage.”

The Congressional Budget Office estimates the current cost of the Medicare Part F program is $1 billion a month. 

Even with the budget cuts, the report estimates the costs for the current year are likely to increase $4 trillion by 2024 over what would be needed to cover everyone with insurance. 

To make matters worse, the CBO projects that the federal government will continue to spend more on Medicare Part S than on the Medicare Trust Fund. 

This means that, even if the federal budget does not cut the Part D funding, it will spend about $500 billion on the Part S program by 2024 while Medicare Part H is expected spend $2 trillion. 

Forcing Americans to pay more for coverage means the program will continue in a perpetual state of “downturn,” the CBO says.

If the government does not do more to help people, people will not buy coverage, because it is cheaper for the government to pay out claims for a broken heart than for a doctor to fix a broken leg, for example.

Even if the budget did not cut Part D or Part D-supported coverage, the result would be the same: the current population of seniors will pay more and seniors who have the most to lose will pay less for coverage.

And, if Medicare Part M coverage is cut, it would mean more people will have to buy private insurance because the government will not cover their care.

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