The phrase “Medicare cuts coming in 2025” refers to the scheduled reduction in Medicare spending that is set to take effect in 2025. These cuts were mandated by the Budget Control Act of 2011, which was designed to reduce the federal deficit. The cuts are expected to have a significant impact on Medicare beneficiaries, as they will likely lead to reduced access to care and higher out-of-pocket costs.
The cuts are a result of the complex and unsustainable nature of Medicare’s current funding structure. Medicare is primarily funded through a combination of payroll taxes and general revenue. However, the program’s costs have been growing faster than its revenue, leading to a projected shortfall in the Medicare Trust Fund. The cuts are intended to address this shortfall and ensure the long-term solvency of the program.
