Medicare Hospital Fund Is Running Out of Funds Sooner Than Later

Medicare's hospital insurance fund is running out sooner than expected. The Hospital Fund is the part that pays for inpatient hospital care, skilled nursing, home health, and hospices, and is now projected to run out even sooner than previously expected. According to the latest 2026 Medicare Trustees Report, the fund will be unable to pay full benefits starting in the second quarter of 2033, which is three months earlier than last year's projection.