But it is still unclear what the long-term effects of the pandemic will be on funds and managers will continue to monitor developments. Last year’s report did not take into account the effects of the pandemic.
Medicare projections are roughly the same as last year’s report.
The Medicare Part A trust fund, which covers the costs of hospitals and nursing homes, will run out in 2026, the same year it was reported last year. At this time, the program would only be able to pay 91% of the promised benefits.
Medicare Part B, which helps seniors pay for doctor visits and outpatient care, and Part D, which covers the benefits of prescription drugs, are “adequately funded in the indefinite future.” according to the report. This is because the law requires them to be automatically funded.
By the end of 2020, about 65 million people were receiving Social Security benefits and nearly 63 million were covered by Medicare.
Administrators urged lawmakers to act sooner rather than later to address the long-term deficit. But Congress has long been committed to addressing the solvency of trust funds. Lawmakers could raise payroll taxes, reduce profits or enact some combination of both.
This story has been updated with additional details.