While headlines warn about Medicare’s Hospital Insurance Trust Fund running dry in 2033, a Cato Institute analysis from Romina Boccia reveals the real fiscal crisis is already here,
Medicare’s Supplementary Medical Insurance program, which covers doctors’ visits, outpatient services, and prescription drugs, operates like a credit card with no spending limit. Over the next decade, SMI will add $8.1 trillion to federal debt ($9.5 trillion with interest), accounting for 45 percent of the entire projected federal deficit.
Boccia argues that Congress has put Medicare’s fastest-growing expenses on autopilot. Her analysis shows that while attention focuses on the 2033 trust fund deadline, SMI is already adding hundreds of billions in new debt every year, and the problem will only accelerate.
Romina Boccia is available for interviews. For scheduling or additional information, contact Madison: mmiller@cato.org.
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