Most Medicare beneficiaries concerned about program's long-term sustainability
A strong majority also agrees that future generations will have to pay more or accept reduced benefits.
Photo: Halfpoint Images/Getty Images
According to a new survey of more than 3,500 Medicare beneficiaries, about 74% are worried about the program's long-term sustainability, a trend that holds across political lines.
The survey, conducted by eHealth, found that 76% of Democratic voters worry about the long-term sustainability of Medicare, as do 74% of Republican voters. These results indicate that the worry over the federal program is a bipartisan concern.
Medicare's Board of Trustees has estimated that funding for Medicare Part A will begin running regular deficits within the next several years, and by 2031 will be insufficient to cover benefits.
The survey found that a strong majority of current Medicare beneficiaries (73%) feel the program works for them as it is. Nearly all (97%) feel they're entitled to the benefits they've earned, and they don't want to see any changes. But a strong majority also agree that future generations will have to pay more or accept reduced benefits.
WHAT'S THE IMPACT?
Twenty percent of respondents say they are very worried about the long-term sustainability of the Medicare program, while 54% are somewhat worried, and 25% aren't worried at all.
While this concern cuts across political lines, there was a divide when parsing the responses by income level. A quarter of beneficiaries with an annual income of less than $25,000 say they are "very worried" about the future of Medicare, compared to only 12% of those with incomes above $100,000.
Most (85%) are very worried that costs will increase or benefits will be reduced in their lifetime; 50% are somewhat worried, and just 15% aren't worried at all. Nearly half (46%) of Medicare beneficiaries with an annual income of less than $25,000 are "very worried" about Medicare costs or benefits being changed in their lifetime. By contrast, only 18% of those with an income over $100,000 are "very worried."
Nearly two thirds (73%) say the Medicare program works today, while only 8% feel it doesn't work as is. Nineteen percent aren't sure. Again, though, there's an income divide: Some 83% of beneficiaries with an annual income of more than $100,000 feel the Medicare program works, but 68% of beneficiaries with an annual income of less than $25,000 feel it works.
Eighty-four percent say that significant changes must be made to ensure the Medicare program is there for future generations. But while 12% are willing to see their benefits or costs changed today if it guaranteed the program's long-term sustainability, 59% are unwilling to accept changes to benefits or costs even if it ensured Medicare's continuation. Twenty-two percent are uncertain.
When asked how they would save the program, nearly half of the respondents said they'd pass the burden of Medicare sustainability to future generations. Forty-seven percent think that the payroll contributions of future beneficiaries should be increased; 21% say the Medicare eligibility age should be raised for future beneficiaries; and 40% say none of those solutions are acceptable.
THE LARGER TREND
A number of federal agencies – including the U.S. Department of the Treasury, Departments of Health and Human Services and Labor, the Centers for Medicare and Medicaid Services, and the Social Security Administration – determined this year that the Medicare Hospital Insurance Trust Fund will run dry by 2031.
That's three years later than the prediction from the 2022 report, which projected a 2028 time frame for when the fund would evaporate.
The projected long-term finances of The Old-Age and Survivors Insurance (OASI) Trust Fund worsened due to the trustees revising down expected levels of gross domestic product and labor productivity by about 3% over the projection window. The Social Security and Medicare Boards of Trustees made this change as they reassessed their expectations for the economy in light of recent developments, including updated data on inflation and U.S. economic output.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
