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Legislative Update Week of March 22, 2004
This week, the Medicare Board of Trustees made its annual report to Congress on the financial condition of Medicare and Social Security. Medicare trustees recently made headlines by saying the Medicare Part A hospital trust fund will become insolvent by 2019 -- seven years sooner than was estimated a year ago. As you may know, Medicare Part A trust fund is financed by payroll taxes. Medicare’s deficit crisis will start this year, according to the Trustees, as tax revenues for part A have been estimated to fall short of outlays. While the recently passed Medicare bill plays a part in the trust fund’s insolvency right now, the report said higher Medicare spending and lower tax revenues in 2003 also contributed. The new Medicare bill provides more money for private health plans and to doctors and hospitals. Other factors affecting Medicare’s viability include: steadily rising health care costs, seniors living longer, and the onset of baby boomers reaching retirement age in seven years. The Trustee’s report states that the prescription drug benefit will further add to the problems Medicare will face. Beginning in 2006, Medicare will pay $85 billion a year just for drug benefits and then grow by an average of 9.6 percent a year, to an estimated $161.8 billion by year 2013. The new report is of immense concern to TSCL, and we will continue to fight for more affordable prescriptions, and for changes in Social Security sooner, rather than later. TSCL will continue to monitor events that affect Medicare and Social Security and will inform our members and supporters of those changes and updates. March 2004 | ||||||||
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