Medicare's main trust fund will be depleted by 2026, three years earlier than expected, according to updated projections from Medicare's Board of Trustees, Bloomberg reports.
Here's what you should know:
1. The board blamed the updated projections on lower payroll taxes and decreased Social Security benefits, both resulting from President Donald Trump's tax overhaul.
2. Medicare expenditures are expected to continue increasing in the coming years.
3. In 2017, Medicare spent $710 billion making it the largest purchaser of health services in the U.S.
4. The trust pays for Medicare Part A expenses. Part B and part D expenses are paid for by general revenue and individual premiums so they are not at risk of running out of funds.
5. The board also updated its Social Security projections finding no difference. Social Security will be depleted by 2034. Social Security expenditures will increase rapidly through 2039, as the baby-boomer generation retires at a faster rate than the workforce is repopulated.