Medicare Hospital Trust Fund Will Be Insolvent by 2040, Report Says

The Medicare Hospital Insurance Trust Fund is projected to be exhausted by 2040, 12 years earlier than estimated in March 2025, according to the Congressional Budget Office’s February projection.

If the balance of the fund reaches zero and the fund’s spending continues to surpass its income, total benefits under Medicaid Part A would be reduced by 8 percent in 2040. The reduction would rise to 10 percent by 2056.