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Kuehn BM - Medicare is expected to operate at a deficit this year and is projected to exhaust its reserve funds in 2017—2 years earlier than previously predicted. The report predicts growing annual deficits going forward as the program’s growing expenses outstrip tax income. If such a trend continues, Medicare taxes would cover only about 81% of the benefits scheduled in 2017, 50% in 2035, and 30% in 2080.

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