Medicare Trustees Report shows lower spending projections for Medicare Part D

The Medicare Board of Trustees on Tuesday released its annual report for Medicare's two separate trust funds, the Hospital Insurance Trust Fund and the Supplementary Medical Insurance Trust Fund.

The Medicare Board of Trustees on Tuesday released its annual report for Medicare's two separate trust funds, the Hospital Insurance Trust Fund and the Supplementary Medical Insurance Trust Fund. Findings revealed that Part D drug spending projections are lower than in last year's report because of higher manufacturer rebates, a decline in spending for hepatitis C drugs, and a slowdown in spending growth for diabetes drugs. The report also found that the Trust Fund will be able to pay full benefits until 2026, which is 3 years earlier than last year's projections, attributable to adverse changes in program income. The Trustees project that total Medicare costs will grow from approximately 3.7% of GDP in 2017 to 5.8% of GDP by 2038, and then increase gradually thereafter to about 6.2% of GDP by 2092.