Here's Why Medicare Ran a Surplus in 2016 but Is Still in Trouble
According to the recently released 2017 Medicare trustees' report, the Hospital Insurance trust fund, which supports taxpayer-funded Medicare Part A, ran a surplus of more than $5 billion. What's more, surpluses are expected to continue every year through 2022. However, the outlook beyond that year isn't too promising.
Here's the current state of Medicare's financial health, and what we can do to fix the program over the long run.
Medicare's finances are split among two trust funds. The Hospital Insurance, or HI, trust fund covers Medicare Part A, while the Supplementary Medical Insurance, or SMI, trust fund pays for Medicare Part B (medical insurance), Medicare Part D (prescription drug coverage), and administrative costs.
Source: Fool.com
