Nearly all Americans age 65 and older, plus millions of younger people with long-term disabilities, rely on the Medicare program for health care insurance. 

Not surprisingly, alarm bells may have sounded for some when the recently released Medicare Trustees’ Report forecasted that in 2026, the program’s Hospital Insurance (or Part A) trust fund will become “insolvent.”

But that term can be misleading when taken out of context, according to a recent AARP Public Policy Institute report.

In fact, while Medicare faces some financial challenges, the program is not “going broke,” as some may have assumed, and does not need major changes to remain strong, says AARP. 

A new AARP Public Policy Institute report explains what exactly Medicare trust fund solvency means and puts the current forecasts into perspective. 

Read https://www.aarp.org/ppi/info-2020/medicare-financial-outlook/.

Read https://www.cms.gov/newsroom/press-releases/medicare-trustees-report-shows-hospital-insurance-trust-fund-will-deplete-7-years. The full Medicare trustees report is available at https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/index.html.