The Obama administration found Medicare's primary trust fund may run out of money as early as 2028, according to The Hill.
Here are five things to know:
1. Previous estimates found Medicare will run out of money by 2026.
2. By 2034, the administration found Social Security will run out of funds, with both Social Security and Medicare comprising 40 percent of federal spending last year.
3. Despite this relatively negative outlook, recent estimates find the Medicare trust fund is projected to last 11 years longer than estimates made prior to the Affordable Care Act.
4. Based on this finding, organizations including the American Association of Retired Persons say healthcare needs to lower drug prices and reduce administrative work.
5. In the review, administration officials said the Medicare projections take into account a "substantial reduction" in year-over-year healthcare costs, and fail to account for recent updates to Medicare, such as the Medicare Access and CHIP Reauthorization Act of 2015.
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