• The Federal Hospital Insurance Trust is part A of Medicare and covers hospital stays, hospices, and skilled care facilities.

  • The trust is not an actual fund, but a mechanism for accounting for government securities underlying the program.
  • The hospital insurance fund is designed for each employee to pay for it and then benefit from it when they retire.
  • Given changing demographics and regulations, the trust fund is expected to run out by 2026, at which point retirees will no longer receive the full benefits of the program.