Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Apr 05, 2023 7 min read
Senior woman registering at the reception of a hospital and nurse asking her to fill a form
Getty Images

The fund covering Medicare's hospital-insurance benefits is now projected to run out of money in 2031, according to a new report by Medicare trustees.

This new insolvency date gives policymakers three more years than previously estimated to address impending financial setbacks that are facing the social safety net program, which provides health care benefits to tens of millions of Americans.

The ultimate insolvency date will likely change, the trustees say, due to difficulties in accurately projecting program expenditures. That leaves the exact timeline unclear for lawmakers to hash out a plan to mend Medicare's finances, which could require an increase in taxes, a cut in benefits or a combination of both to keep benefits paying out in full.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Long-Term Care Insurance allows you to know that you and your loved ones are financially protected as you age.
Regular health insurance, disability insurance, and Medicare are not designed to cover long-term care costs. Get Long-Term Care Insurance today - select your state to get a free quote.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates

What the report says

In a report released Friday, Medicare’s Board of Trustees provided the latest snapshot of the program’s finances. On the whole, Medicare is on sounder financial footing than indicated in last year’s trustee report, though financial shortfalls still loom.