Just received from the Mercatus Center at George Mason University,
The chart illustrates long-term projections of Medicare revenues from premiums and payroll taxes combined with projected federal government transfers into Medicare and projected deficits in Medicare’s Hospital Insurance Fund.
What does it mean? It means that
As a percentage of GDP, these general revenue transfers are projected to increase from 1.3% in 2010 to 3.6% in 2050. In addition, growing deficits in the Hospital Insurance Trust Fund will need to be proactively addressed by new legislation to avoid a future interruption of service. Medicare funding must be cut; these cuts must be deliberate, not due to a legislative loophole.
In other words, it’s a Medicare time bomb.
Click on the graph for detail.
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