Medicare

Medicare is a government-funded program that provides health care insurance for all United States citizens age 65 and over and people under 65 with certain medical issues. Anyone over 65 who is living in the U.S. is eligible for Medicare. However, to receive Medicare Part A without monthly premiums, a person needs to have worked in the U.S. for at least 10 years.

Treasury Secretary Timothy Geithner announced on May 12, 2009 that the current recession in the United States has had a negative impact on the Medicare program. According to new estimates, the Medicare hospital insurance trust fund will be exhausted by 2017, two years earlier than the last estimate. In 2008, Medicare began paying out more in benefits than it was taking in in payroll taxes. Geithner recommended "congressional action" to ensure that Medicare benefits are not interrupted.CNN: Recession hits Social Security hard (May 12, 2009)

Recent projections predict that Medicare will have no money left to pay hospital bills in 2017.Medicare Running Out of Funds, Requiring Changes (March 28, 2008) Legislators continue to debate the best course of action to keep Medicare solvent. Although no major action has been taken as of 2009, proposals include decreasing benefits, reducing payments to doctors, increasing payroll taxes and increasing the age of eligiblity.Revolution Health: The Medicare Meltdown (July 1, 2008)CNN: Recession hits Social Security hard (May 12, 2009)