Medicare Hospital Insurance Trust Fund solvent until 2029

By Gary Linnell

ProWEB Wire (Industry News)

Treasury Secretary Timothy Geithner today announced that, while Medicare's finances have improved thanks to the passage of the landmark health care reform, the recession has somewhat worsened the short-term outlook for Social Security.

Medicare's Hospital Insurance Trust Fund is now expected to remain solvent until 2029 -- 12 years longer than projected last year.

However, as a result of the recession, the Social Security program is expected to this year experience a deficit of $41 billion before returning to surplus in the years 2012-2014.