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The Status of the Medicare HI and SMI Trust Funds: The Trustees' 2005 Annual Report

The Federal Hospital Insurance (HI) Trust Fund finances Part A of Medicare, while the Federal Supplementary Insurance (SMI) Trust Fund finances Part B and, starting in 2006, Part D of Medicare. Data Digest #111 summarizes and graphically illustrates projections of the trust funds' short- and long-term financial health. The Trustees now project that the HI Trust Fund will remain solvent until 2020, one year later than they projected in 2004.

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