Medicare funds to last 12 years longer than earlier forecast, report says

By Amy Goldstein
Washington Post Staff Writer
Friday, August 6, 2010; A06

Medicare's finances have been strengthened by the new law setting in motion broad changes to the nation's health-care system, according to a government forecast issued Thursday, which says the fund that pays for older Americans' hospital care will last a dozen years longer than expected.

The report, prepared annually by the trustees who monitor the two enormous federal entitlement programs for the elderly -- Social Security and Medicare -- says that the Social Security system has, at least for now, been damaged more severely than Medicare by the weak economy. For the first time in nearly three decades, the report says, Social Security will pay out more in retirement checks this year and in 2011 than it will take in through payroll taxes.