An updated CBO analysis found that the Senate’s health care reform bill, the Patient Protection and Affordable Care Act (HR 3590), would extend the solvency of the Medicare Hospital Insurance (HI) trust fund that pays for Medicare Part A benefits.  The CBO found that the bill would reduce net fund outlays by $245 billion between 2010 and 2019 and generate $113 billion through increased HI payroll taxes over the same period, adding $358 billion to the fund over ten years.  The CBO further estimates that the changes will leave a positive balance of $170 billion in the fund at the end of FY2019.  Without the bill, the CBO projects the fund will be insolvent by FY2017. 

Full report: CBO Finds Senate Health Care Bill (HR 3590) Would Extend Medicare Hospital Trust Fund Solvency (PDF | 499KB)

Congressional Budget Office. (2010). Memo to Sen. Jeff Sessions (R-AL)