FOR IMMEDIATE RELEASE, Tuesday, March 25, 2008
CONTACT: Debra Curtis, (202) 225-5065

WASHINGTON, D.C. -- Representative Pete Stark (D-CA), Chairman of the Ways and Means Health Subcommittee, today issued the following statement in response to the 2008 report of the Board of Trustees of the Medicare Trust Fund.

"Reports of Medicare’s death have been greatly exaggerated," said Stark. "Though the trigger has been pulled by Republican ideologues, this year’s Trustees report shows that Medicare remains solvent and sustainable."

"The trigger is an arbitrary threshold designed to scare people into thinking we can't afford to continue Medicare as an entitlement. The fact is that we can't afford not to," Stark continued.

"Through the years, Congress has regularly modified and modernized Medicare to accommodate advances in medicine and meet the demands of a growing population. I look forward to working with colleagues on both sides of the aisle to ensure Medicare's viability for future generations," Stark concluded.

Below are several links that provide useful information for individuals analyzing the Trustees’ report. Because payments to private Medicare Advantage plans come from both Part A and Part B, all measures of financial health – e.g., solvency, share of general revenue financing, etc. -- are worse than they would otherwise be as a result of the overpayments. Solvency remains strong by historical standards, though it would be substantially stronger if Medicare Advantage overpayments were eliminated.

A fact sheet on the findings of the 2008 Trustees Reports (pdf)

A fact sheet on the “trigger” (pdf)

Medicare solvency since 1970 (table pdf)