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The Status of the Medicare HI and SMI Trust Funds: The Trustees' 2006 ... Skip to content

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The Status of the Medicare HI and SMI Trust Funds: The Trustees' 2006 Annual Report

Financial transactions of the Medicare program operate through two trust funds. The Federal Hospital Insurance (HI) Trust Fund finances Medicare Part A, which covers inpatient hospital, home health, skilled nursing facility, psychiatric hospital, and hospice care services. The Federal Supplementary Medical Insurance (SMI) Trust Fund finances the new Part D prescription drug benefit, and Part B, which covers physician visits, outpatient services, some mental health services, durable medical equipment, some preventive services, and home health visits not covered under Part A. This AARP Public Policy Institute Data Digest summarizes the current and projected financial status of these trust funds, as determined by the Trustees in their year 2006 report to Congress. (6 pages)

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