Financial Challenges
Recommendations of the Comptroller General
The recent publication of the 2003 Trustees [of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds] reminds us, once again, that the status quo is not an option for Medicare. If the program stays on its present course, in 10 years Hospital Insurance (HI) trust fund outlays will begin to exceed tax receipts, and by 2026 the HI trust fund will be exhausted. It is important to note that trust fund insolvency does not mean the program will cease to exist; program tax revenues will continue to cover a portion of projected expenditures. However, Medicare is only…
