Medicare Spending and Financing

Reply to the following discussion at least 150 words, no copy and paste, no plagiarism

(Belen7)

The Medicare solvency projection is one way of measuring Medicare’s financial status. Since the Medicare fund only includes Part A benefits, it is not a full scope of the financial status of the Medicare program. In the years when the income exceeds the benefits paid, there is an increased in the asset level. In years when the benefit spending exceeds the income, the assets decrease. Each year, this calculation is used to project how long the Medicare program will last. I remember hearing about his some years back and never understood how the projections kept changing. I see now that the payroll taxes play a roll in the Medicare trust fund and it’s speculated that as the baby boomer’s continue to retire, the workforce will decrease, therefore less payroll taxes, but also the expenses will increase due to projected increase in benefit spending as the baby boomer’s age and their needs for health care services grow.