Fortune: In less than a year, Trump erased 12 years of solvency for the trust fund that pays for Medicare Part A

[mahatmakanejeeves]

Reposted by Kevin M. Kruse
https://bsky.app/profile/kevinmkruse.bsky.social

Randi Mayem Singer
‪@rmayemsinger.bsky.social‬

Why isn't this a WAY bigger story? Planning to be retired in 2040? Or still alive and on Medicare any time after that? Good luck with your healthcare.

In less than a year, Trump erased 12 years of solvency for the trust fund that pays for Medicare Part A | Fortune
The CBO estimates that benefit reductions would start at 8% in 2040 and steadily climb to a 10% cut by 2056.
fortune.com
2:29 AM · Feb 26, 2026

Why isn't this a WAY bigger story? Planning to be retired in 2040? Or still alive and on Medicare any time after that? Good luck with your healthcare.

— Randi Mayem Singer (@rmayemsinger.bsky.social) 2026-02-26T07:29:26.010Z

[greatauntoftriplets]

1. They want us to die.

[liberalgunwilltravel]

5. Well

The feeling is mutual.

[UpInArms]

2. Archive link

https://archive.ph/C1BOb

This rapid deterioration of Medicare’s financial solvency represents a stark drop from the CBO’s previous estimate, which was published just last year, in March 2025. The dramatically shortened timeline means future retirees could face significant cuts to vital health care services far sooner than previously anticipated. As required by the Deficit Control Act, CBO Director Phillip Swagel noted the projections reflect the assumption benefits would be paid as scheduled even after the HI trust fund was exhausted.

The primary culprit for this accelerated depletion is a sharp reduction in the fund’s projected income, heavily driven by legislation passed over the last year. Specifically, the 2025 reconciliation act (Public Law 119-21, more commonly known as the One Big Beautiful Bill Act) significantly reduced the revenues the trust fund normally receives from taxing Social Security benefits. This legislation lowered tax rates and established a temporary deduction for taxpayers age 65 or older. Consequently, this major policy shift enacted during the Trump administration has directly contributed to starving the Medicare safety net of critical future funding.

What is the HI trust fund?

The HI trust fund is the financial backbone for Medicare Part A, which covers essential services including inpatient hospital care, stays in skilled nursing facilities, home health care, and hospice care. Over the next 30 years, the fund is expected to rely on the Medicare payroll tax for about three-quarters of its annual income, with another roughly one-eighth derived from income taxes on Social Security benefits.

However, the recent tax cuts are not the only factor draining the fund. The CBO also cited decreased projections for payroll tax revenues, warning it had to adjust their models to account for lower expected worker earnings. Furthermore, because the trust fund will have smaller balances going forward, it will generate less interest income, creating a compounding negative effect on its overall finances.

[rampartd]

3. they voted for this.

and have given him plenty of money to make it happen.

[2naSalit]

4. I don't plan...

To be here then. But I am already suffering from Medicare premiums that exceed the COLA each year which means I got decrease in my net income each month.