President Joe Biden recently released his budget proposal for 2024. His plan pledges to extend Medicare’s solvency by at least 25 years “without cutting any benefits or raising costs for beneficiaries.”
The president’s math doesn’t add up. His plan would burden taxpayers while leaving Medicare on the fast track to insolvency.
Medicare’s Part A hospital insurance trust fund will run out of money in 2028, according to the most recent report from the program’s trustees. Medicare’s costs are projected to grow faster than the overall economy through the late 2070s. The president insists he can avert catastrophe by raising taxes on individuals who make more than $400,000. He also wants to subject more drugs to federal price controls than were included in the Inflation Reduction Act. The administration says the first idea would yield $650 billion and the second $204 billion over the next decade. All that money would be directed toward the Part A trust fund.