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Medicare trust fund solvency.

The Medicare Hospital Insurance trust fund is expected to remain solvent until the year 2023, according a report issued by the fund’s trustees on March 30, 2000.

This estimate, which is based on the most current economic and demographic data assumptions, extends the fund’s projected solvency by 8 years over what had been projected by the trustees last year. The projection for the length of time the fund will remain solvent is the longest since 1974.

The robust national economy and fewer expenditures because of the federal Health Care Financing Administration’s renewed cost-cutting measures were credited with extending the life of the fund and with cutting the projected 75-year actuarial deficit by >75%.

“This is a remarkable accomplishment considering that when this Administration took office, the trust fund was projected to be depleted in 1999. In the 7 years since the Clinton Administration took office, we have extended the life of the trust fund by a full 24 years and cut the long-range actuarial deficit by 75%,” said Health and Human Services Secretary Donna E. Shalala.

However, the trustees did express concern about increases in long-term costs to the Supplemental Medical Insurance trust fund (Medicare part B) that helps pay for the services of physicians and other healthcare professionals, outpatient hospital services, and home health care and other services. The program is financed by general revenues from the government and by monthly premiums paid by beneficiaries. The report issued by trustees called on Congress to exert control over those costs before the baby boom generation reaches retirement age.

The Health Care Financing Administration (HCFA) collected only $120 million of debts that exceeded …