This week, the Medicare and Social Security Trustees released their annual reports on the long-term financial status of the Medicare and Social Security Trust Funds.
The Medicare Trustees predict that the trust fund that finances Medicare’s hospital insurance coverage will remain solvent until 2030, unchanged from last year.
While Part B premiums will be finalized later this year, the U.S. Centers for Medicare and Medicaid Services reports that approximately 70 percent of beneficiaries are expected not to see a premium increase in 2016 because it is projected that there will be no cost-of-living increases in Social Security benefits.
The remaining 30 percent of beneficiaries would pay a higher premium based on this projection. These include only individuals who enroll in Part B for the first time in 2016; enrollees who do not receive a Social Security benefit; beneficiaries that are directly billed for their Part B premium; and current enrollees who pay an income related higher premium.
The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, one year later than projected last year, with 79 percent of benefits payable at that time. The OASDI Trust Fund will become depleted in 2016, unchanged from last year’s estimate, with 81 percent of benefits still payable.
The Social Security report is at http://www.socialsecurity.gov/OACT/TR/2015/.