This issue brief provides an overview of Medicare's financing and the fiscal challenges the program faces in the coming decades. The brief describes how Medicare is financed and examines several methods of assessing its long-term financial outlook.

This brief also describes potential changes in the Medicare program that could arise if current trends continue and the potential for various policy proposals to change the trend lines, both for Medicare and for the nation's overall health care spending. Other contributing factors include the nation's aging population, the recently added Medicare drug benefit and growing enrollment in private Medicare Advantage plans.

The brief was prepared for the Foundation by Health Policy Alternatives Inc.

 Issue Brief (.pdf)