The Coastal Post - June, 1996

Medicare Running Out Of Money

Medicare's program for covering hospital expenses continues its precipitous decline. According to new government data reported in the New York Times, the hospital trust fund lost $4.2 billion during the first half of the current fiscal year. Medicare's financial condition is much worse than Administration officials predicted just one year ago.

The projected date of bankruptcy for the hospital trust fund will arrive sooner than the Medicare Trustees predicted last year.

Instead of bankruptcy in the year 2002, Senator Pete Domenici (R-NM) predicts the hospital trust fund will now run out of money by May of 2001.

Roland King, former chief actuary at the agency that runs Medicare, predicts the trust fund will be depleted in late 2000 or early 2001.

Across the country, interest groups are airing ads designed to frighten senior citizens about Medicare reform.