Trustees urge lawmakers to ensure Medicare continues

Trustees reported last week that long-term actuarial deficits for Medicare worsened in 2012, and encouraged lawmakers to take steps to ensure continuation of the insurance program for the nation’s elderly.

Trustees projected that Medicare costs would grow substantially from about 3.7 percent of GDP in 2011 to 5.7 percent of GDP by 2035, and will increase gradually thereafter to about 6.7 percent of GDP by 2086.

They projected that the hospital insurance trust fund will continue to pay out more in benefits than it receives in income, as it has since 2008. It will be exhausted in 2024. The Part B trust fund is expected to remain adequately financed indefinitely because current law allows automatic increases in funding for it.

The complete report is available on the Social Security website.