As for Medicare, the report said although the pandemic has had a significant impact on the short-term financing and spending of the program, the financial status of the trust funds has not materially changed. It noted that total expenditures in 2021 were $839.3 billion, and total income was $887.6 billion, which consisted of $882.3 billion in non-interest income and $5.3 billion in interest earnings.
The report, however, estimated that the HI fund, otherwise known as Medicare Part A, which helps pay for inpatient hospital services, hospice care, and skilled nursing facility and home health services following hospital stays, is not adequately financed over the next 10 years. It is projected to be higher than last year’s estimates due to the high number of covered workers and higher average wages. “The assets were $142.7 billion at the beginning of 2022, representing about 40% of expenditures projected for 2022, which is below the Trustees’ minimum recommended level of 100%,” it said.
On the other hand, the report noted that the SMI trust fund, which consists of Medicare Part B and Part D, which helps pay for physician, outpatient hospital, home health, and other services for individuals who have voluntarily enrolled, is expected to be adequately financed over the next 10 years and beyond. It explains that premiums and general revenue for Parts B and D are reset each year to cover expected costs and ensure a reserve for Part B contingencies. The monthly Part B premium this year is $170.10.