What year is Medicare projected to run out of money?

Medicare's Hospital Insurance (HI) Trust Fund, which pays for hospital care (Part A), is projected to run out of money by 2033, according to recent reports from mid-2025, leading to potential benefit reductions unless Congress acts. At that point, incoming tax revenue would only cover about 89% of scheduled payments, meaning benefits would be reduced by about 11%, say Peter G. Peterson Foundation and Kiplinger.

Is Medicare going to run out of money?

Yes, Medicare's Hospital Insurance (Part A) trust fund faces depletion, with recent (2025) projections from Trustees reports indicating its reserves could run out around 2033, meaning it couldn't pay 100% of scheduled benefits, but would still cover most (around 89-90%) through ongoing tax revenues. This is due to rising costs from an aging population and increased healthcare spending, requiring legislative action (raising revenue or cutting costs) to fully restore solvency long-term, though the program won't completely disappear. 

What will happen to Medicare in 2025 for seniors?

In 2025, the biggest Medicare changes for seniors focus on Prescription Drug coverage (Part D) with a new $2,000 annual out-of-pocket cap, eliminating the "donut hole," allowing monthly payments for drug costs, and introducing price negotiations, while Medicare Advantage plans face potential benefit adjustments, and Part B premiums and deductibles will increase. Expect some MA plans to reduce extra perks to offset new drug costs, plus updates to telehealth and integrated care options. 

Will Medicare end in 2036?

Last year's report set the go-broke date for Medicare's hospital insurance trust fund as 2036. But the latest report pushed up that date to 2033. Medicare is a federal health insurance program that offers coverage for people 65 and older, as well as people with certain disabilities.

What does Dave Ramsey say about Medicare?

Dave Ramsey's Medicare advice centers on planning ahead, understanding enrollment periods to avoid penalties, using Health Savings Accounts (HSAs) if possible, and supplementing Original Medicare with Medigap or Medicare Advantage (Part C) to cover gaps like dental, vision, and long-term care, stressing that mistakes can be costly and recommending expert advice for personalized choices. 

Social Security, Medicare running out of money

What did Suze Orman say about social security?

Dave Ramsey suggests claiming Social Security at 62 and investing the money. Suze Orman advises waiting as long as possible and ideally until 70 to claim benefits. Orman's advice is more likely to be the right move for most seniors.

Do wealthy people go on Medicare?

Yes, rich people get Medicare because eligibility is based on age (65+) or disability, not income, but they pay significantly higher premiums (Income-Related Monthly Adjustment Amounts, or IRMAA) for Parts B & D based on their tax returns, effectively making it a tiered system where wealth means higher costs for the same basic federal insurance. While eligibility isn't restricted by wealth, planning is crucial for high-income individuals to manage these increased costs, as Medicare doesn't cover everything and supplementary plans are often needed. 

How much Social Security will you get if you make $60,000 a year?

If you consistently earn around $60,000 annually over your career, you can expect a monthly Social Security benefit of roughly $2,100 to $2,300 at your full retirement age (FRA), but the exact amount varies by your birth year and claiming age; for instance, at FRA, it's around $2,311 based on 2025 bend points, while claiming at 62 yields less and claiming at 70 yields more, with an official estimate available on the Social Security Administration (SSA) website. 

Does everyone have to pay $170 a month for Medicare?

If you don't get premium-free Part A, you pay up to $565 each month. If you don't buy Part A when you're first eligible for Medicare (usually when you turn 65), you might pay a penalty. Most people pay the standard Part B monthly premium amount ($202.90 in 2026).

How will Medicare change in 2026 for seniors?

For 2026, seniors face higher Medicare Part B premiums and deductibles, but see new prescription drug savings, including a $2,100 Part D out-of-pocket cap, a continued $35 insulin cap, and the start of drug price negotiations, plus new rules for Medicare Advantage (MA) and improved enrollment protections for those misled by MA directories, with goals to lower costs and modernize care. 

Who qualifies for an extra $144 added to their social security?

You qualify for an extra ~$144 on your Social Security check if you have a Medicare Advantage (Part C) plan with a "Part B Giveback" benefit, which refunds some or all of your Medicare Part B premium, appearing as extra cash in your check, but eligibility depends on living in the plan's service area and paying your own Part B premiums. The "144" figure was common when the Part B premium was around that amount, but the actual refund varies by plan and location, potentially exceeding the full premium. 

Why are doctors dropping Medicare patients?

Physician Medicare reimbursement dropped 33% since 2000, when adjusted for inflation, according to the AMA. As a result, Ferguson said, many practices—particularly small, independent ones—can no longer afford to absorb the losses. "It's gotten to a point where you can't absorb it.

How much will Medicare cost in 2026?

For 2026, the standard Medicare Part B premium is $202.90/month, with a $283 deductible, while Part A (Hospital) has a $1,736 deductible per benefit period and a potential $565 premium if you don't qualify for premium-free Part A, and Part D (Drugs) has a yearly out-of-pocket cap of $2,100, all with adjustments for higher incomes (IRMAA). Costs vary by plan and income, with higher earners paying more for Parts B and D.
 

Is it better to go on Medicare or stay on private insurance?

Neither Medicare nor private insurance is universally "better"; the best choice depends on individual needs, but Medicare often offers lower overall costs and simplicity for seniors, while private insurance excels in covering dependents and potentially offering more choice with networks/out-of-pocket caps, though at higher premiums. Medicare boasts lower admin costs and standardized coverage, but Original Medicare lacks an out-of-pocket maximum, a feature typically found in private plans and Medicare Advantage (Part C). 

What happens if I can't afford to pay for Medicare?

If you can't afford to pay your Medicare premiums and other medical costs, you may be able to get help from your state. States offer Medicare Savings Programs for people entitled to Medicare who have limited income. Some programs may pay for Medicare premiums and some pay Medicare deductibles and coinsurance.

Will Medicare payments go up in 2025 for seniors?

The standard monthly premium for Medicare Part B enrollees will be $185.00 for 2025, an increase of $10.30 from $174.70 in 2024. The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025, an increase of $17 from the annual deductible of $240 in 2024.

When I turn 65 is Medicare free?

To be eligible for premium-free Part A on the basis of age: A person must be age 65 or older; and. Be eligible for monthly Social Security or Railroad Retirement Board (RRB) cash benefits.

What are the biggest mistakes people make with Medicare?

The biggest Medicare mistakes involve missing enrollment deadlines, failing to review plans annually, underestimating total costs (premiums, deductibles, copays), not enrolling in a Part D drug plan with Original Medicare, and assuming one-size-fits-all coverage or that Medicare covers everything like long-term care. People often delay enrollment, get locked into old plans without checking for better options, or overlook financial assistance programs, leading to higher out-of-pocket expenses and penalties. 

What are the 5 things Medicare doesn't cover?

Medicare generally doesn't cover long-term care, most dental care, routine vision services (like glasses), hearing aids/fittings, and cosmetic surgery, though it does provide strong coverage for hospital and doctor services; you can often get coverage for these gaps through Medicare Advantage (Part C) or supplemental plans. 

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

How many Americans have $500,000 in retirement savings?

Only a small percentage of Americans have $500,000 or more in retirement savings, with recent data (late 2025/early 2026) suggesting around 7% to 9% of households have reached this milestone, though this varies by source and can be skewed by high-income earners or home equity. For instance, one study showed only 4% of all households had $500k-$999k, and 3.1% had $1M+. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

Is Medicare free if you are poor?

Californians with an annual income of less than $21,597 for an individual or $29,187 for a couple are eligible for a Medicare Savings Program. These programs provide help from the State of California to pay for your Medicare premiums, and sometimes your deductibles and copayments.

What does Dave Ramsey say about health insurance?

Dave Ramsey recommends High-Deductible Health Plans (HDHPs) paired with a Health Savings Account (HSA) for tax advantages and savings, while avoiding indemnity plans; he stresses focusing on total costs (deductibles, copays, out-of-pocket max) and using trusted, independent agents like RamseyTrusted partners to find the right fit, rather than buying based on "pretty covers". 

What do 90% of millionaires do?

The famed wealthy entrepreneur Andrew Carnegie famously said more than a century ago, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.