Big Beautiful Bill Ripples. Medicare Part A Goes Bust 12 Years Earlier
Category: Medicare
Feb. 28, 2026 –The Medicare Hospital Insurance (Part A) trust fund is now projected to be depleted by 2040, 12 years earlier than the Congressional Budget Office projected just last year. Experts at KFF says that the tax cuts in the “Big Beautiful Bill” are behind this giant change. This does not mean Medicare runs out of money completely. Instead, incoming payroll taxes will likely cover about 89% of benefits, meaning partial payments are likely if Congress does not act.
- Projected Exhaustion Dates: The 2024 Medicare Trustees report estimated insolvency by 2036. The Congressional Budget Office, on the other hand, estimated a few years ago that Part A reserves would be exhausted by 2052. A new report from the Congressional Budget Office (CBO) as of Feb 2026 suggest the fund could be exhausted by 2040 due to recent legislative changes – 12 years earlier than its prediction just a year ago.
- What It Means: The trust fund (Part A) pays for hospital stays, skilled nursing, and hospice. If the fund runs out, the program will not stop, but it will only be able to pay approximately 89% of costs, according to the 2024 report.
- Parts B and D: Medicare Parts B (medical insurance) and D (prescription drugs) are funded differently and do not face the same depletion, though they are subject to rising premiums and general revenue costs.
Historically, Congress has acted to prevent the Medicare trust fund from becoming fully insolvent before the deadline
Comments on "Big Beautiful Bill Ripples. Medicare Part A Goes Bust 12 Years Earlier"
pa kettle says:
From the White House March 11, 2025:
“The Trump Administration will not cut Social Security, Medicare, or Medicaid benefits. President Trump himself has said it (over and over and over again).” https://www.whitehouse.gov/articles/2025/03/fact-check-president-trump-will-always-protect-social-security-medicare/
Meanwhile America’s billionaire population has increased from 814 to 935 and their cumulative wealth increased 22% to $8.2 trillion since January 2025. Musk is $308 billion richer, Zuckerberg is $2.4 billion richer and Bezos is $1 billion richer. Musk, Zuckerberg and Bezos were all in the first row at the 2025 inauguration. Billionaires at Trump’s inauguration were worth a combined $1.35 trillion. Trump is now worth $6.7 billion up $1.4 billion from a year ago. Trump’s cabinet was worth $7.5 billion in 2025. For those that don’t remember the inauguration was moved indoors due to weather, the irony of the average Trump supporter being left out in the cold is fitting.
Rufus says:
I thank God for America and Americas billionaires. For the most part they are the movers and shakers, the innovators that make even the lower middle class rich compared to most of the rest of the world. Oh by the way; Musk, Zuckerberg and the majority of the tech giants were no friends of President Trump a mere 6 years ago. If I explained why, my post would probably be deleted. Happy Trails! Rufus
Rufus says:
How ironic ! After posting my above thought I read an article stating that the horrible billionaire Elon Musk has offered to pay the salaries of the TSA agents until the Democrats end the shutdown. Not sure if that is allowed but I am sure he'd do it if it is. Rufus