Medicare’s Hospital Insurance trust fund is projected to be depleted in 2028, two years later than last year’s projection due to stronger than expected economic growth.
Our updated FAQs answer key questions about Medicare financing and trust fund solvency..
- In 2019, the 12.5 million people jointly enrolled in Medicare and Medicaid comprised 17% of the traditional Medicare population but accounted for 33% of traditional Medicare spending. They made up 14% of the total Medicaid population and accounted for 32% of all Medicaid spending.
- Medicare, which covers 65 million people, had net spending of $689 billion in 2021, accounting for 21% of health spending in the U.S. and 10% of the federal budget. Only Social Security and defense spending accounted for a bigger share of the budget.
- Medicare covers a range of services used to treat mental health and substance use disorders, both inpatient and outpatient, and prescription drugs. Our FAQs review Medicare coverage and cost sharing requirements, as well as recent policy changes.
This interactive provides the facts on Medicare spending. Medicare, which serves 65 million people and accounts for 12 percent of the federal budget and 20 percent of national health spending, is at the heart of discussions about health expenditures and affordability.
Explore data on enrollment growth, Medicare spending trends overall and per person, growth in Medicare spending relative to private insurance, spending on benefits and Medicare Advantage, Part A trust fund solvency challenges, and growth in out-of-pocket spending by beneficiaries.Read More