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Health Care Costs | Medicare Insolvency Quickens

In a report released yesterday, rising health care costs have helped speed the projected insolvency of the Medicare program, but changes in the nation's payrolls have extended the solvency of the Social Security program by a year. It was part of an annual report issued yesterday by the trustees who monitor the fiscal health of the Medicare and Social Security system.

Medicare will exhaust the money in its trust fund by 2026. Last year, it was reported that it would have enough money until 2030, but its solvency has been harmed as medical costs have risen and revenue from payroll taxes has dwindled.

Social Security is largely unchanged because of lower growth in wages and more immigrants working and paying payroll taxes.

Both political parties have used the forecasts as ammunition to for their views on how Medicare and Social Security systems should function.

Republicans who favor a larger role for private insurers are likely to say the worsening finances mean that Congress should move to stop increased government spending. Democrats will probably argue that since Medicare is still solvent until 2026, Congress should be in no rush to make major changes.