Medicare Trustees Report Intensifies Need for Reforms: Congress Should Enact Long-term Solutions

WASHINGTON D.C. (June 18, 2025) – Statement from Mark E. Miller, executive vice president of health care at Arnold Ventures, after the release of the annual Medicare Trustees Report.

“The Medicare Trustees Report released today alarmingly projects insolvency for the Medicare Part A trust fund in just eight years – three years earlier than previously estimated. This timeframe should push policymakers to enact reforms to prevent an 11% across-the-board cut to hospital payments.

“The new date is cause for worry, as the Medicare program faces significant sustainability challenges. Per-person spending across all parts of Medicare is expected to grow by $12,400 (66%) over the next decade — faster than wages and the economy, placing an increasingly large burden on taxpayers, as well as Medicare enrollees, who will pay higher premiums.

“Congress has an opportunity to enact significant reforms as part of the One Big Beautiful Bill, but so far, it has failed to insert meaningful language into the legislation. Even with clear evidence of waste, fraud, and abuse in Medicare Advantage – including overpayments of $84 billion just this year, according to MedPAC —lawmakers continue to avoid making serious, promising, bipartisan policy changes to the payment system.

“Medicare Advantage reforms could meaningfully improve the trust funds’ finances while reducing Part B premiums for all Medicare beneficiaries, not just those enrolled in Medicare Advantage plans. Congress and the administration should stand up to special interests and take concrete steps to put the Medicare program on a path of long-term sustainability.”