fah hospital policy blog

Perspectives on health policy affecting America’s hospitals and the patients we serve.

FAH Statement on Medicare Trust Fund Report

July 22, 2015 | Chip Kahn

Category: General, Medicare

Today, the Medicare trustees released their annual report on the current and projected financial status of the Hospital Trust Fund, and its conclusions are instructive for policymakers going forward.

That the Trust Fund will remain solvent until 2030, the same date as last year, is welcome news for Medicare beneficiaries. This is in part a reflection of hospital efforts to manage substantial payment cuts, contain costs and transform the way health care is delivered while improving the quality of care for Medicare beneficiaries.

The report also signals that hospital cuts already embedded in law will have a compounding effect leading to significant payment reductions over time. Policymakers should therefore exercise great caution in enacting further cuts or other policies that could destabilize hospitals and distract them from meeting their mission to care for America’s seniors.