Hospital Insurance Trust Fund

AAA

DEFINITION of 'Hospital Insurance Trust Fund'

This trust fund is part A of Medicare, the United States' health insurance program for people age 65 and older and certain disabled persons. It is financed through payroll taxes derived from current workers and employers. This trust fund is overseen by a board of trustees that report yearly to congress regarding its financial status. It has been projected to become insolvent a number of times throughout the years, due to legislative changes, and is currently projected to become insolvent in the year 2017.

INVESTOPEDIA EXPLAINS 'Hospital Insurance Trust Fund'

The main concern with this fund is that over time, the Nation's economy will not support this type of program. The actual trust fund is an account mechanism, since there is no transfer of money into or out of the fund. Income to the trust fund is credited in the form of interest-bearing government securities. Expenses for services and administrative costs are recorded against the fund. If the fund has a balance, the Treasury is allowed to make payments.

RELATED TERMS
  1. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Health Reimbursement Account - ...

    Employer-funded plans that reimburse employees for incurred medical ...
  5. Health Insurance Portability And ...

    An act created by the U.S Congress in 1996 that amends both the ...
  6. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
Related Articles
  1. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  2. Long-Term Care: More Than Just A Nursing ...
    Options & Futures

    Long-Term Care: More Than Just A Nursing ...

  3. Getting Through The Medicare Part D ...
    Options & Futures

    Getting Through The Medicare Part D ...

  4. What Does Medicare Cover?
    Insurance

    What Does Medicare Cover?

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center