Trustees: Medicare Trust Fund Exhausted by 2024

Press Release

Iowa Congressman Tom Latham said an official government report released on Friday predicting that Medicare and Social Security trust funds will run out of money years sooner than previously expected highlights the need for immediate solutions to save critical government programs for Iowa seniors.

The new Medicare trustees report projects that the Medicare hospital trust fund will be exhausted by 2024. The trustees previously expected the trust fund to run into the red in 2029. The new report also projects the Social Security trust fund to be exhausted by 2036, which is a year sooner that earlier predictions.

Congressman Latham said the report ratchets up the urgency of taking responsible action to save Medicare for future generations without cutting benefits for current recipients.

"This report is even more evidence that Medicare is on a path toward certain bankruptcy," Congressman Latham said. "As more Baby Boomers reach retirement, they put more strain on these important programs. At the same time, the economic downturn has meant less revenue for the trust funds. There are some elected officials and advocacy groups that have the nerve to tell the American people that there is no problem. That is not only wishful thinking, it's irresponsible leadership. I'm working to avert this impending crisis for current and future generations of Medicare beneficiaries without cutting a single penny from the Medicare program or from the benefits of recipients.

Congressman Latham has introduced his own health care legislation, HR 364, which would take important steps toward preserving Medicare. Among other provisions in the bill, HR 364 would implement common-sense medical liability reform, saving Medicare $50 billion over 10 years.

"Our nation's leaders have kicked the Medicare crisis can down the road every chance they get, and there isn't much road left," Congressman Latham said. "I stand ready to work with any of my colleagues in Congress and with the White House to put together a plan to save Medicare from bankruptcy without cutting benefits for seniors. It can be done, but we have to act now."

Source