This afternoon, Senators Reid, Schumer and Murray again failed to put forward a plan to prevent Medicare from going bankrupt. Instead, Senator Schumer, while live tweeting from the press conference, said Medicare must stay in its “current form.” The Congressional Budget Office (CBO) and the Medicare Trustees have stated that Medicare will go bankrupt in its current form. As the program is currently structured, Medicare taxes and premiums cover only a little over more than half the actual cost of Medicare. By maintaining the status quo on Medicare, Senator Schumer must either raise taxes, cut benefits or the program will go bankrupt.
The Medicare Trustees Report Stated Medicare Will Go Bankrupt In 2024. The Medicare hospital insurance fund for seniors is now projected to run out of money in 2024, five years earlier than last year's estimate. (The Associated Press, 5/13/11)
In March, CBO Stated Medicare Will Go Bankrupt Even Sooner Than The Trustees Have Indicated. “The Hospital Insurance Trust Fund is projected to become exhausted in 2020.” (“March 2011 Medicare Baseline,” Congressional Budget Office, March 2011, p. 4)