Prediction of U.S. recession may affect Medicare funding in the future

From Nasdaq: 2025-03-24 05:44:00

DoubleLine Capital CEO Jeffrey Gundlach predicts a greater than 50% chance of a U.S. recession in the next few quarters, higher than most believe. CNBC survey results show a 36% chance, up from 23% in January. A recession could impact Medicare, as seen in previous sharp downturns leading to increased unemployment. FICA payroll taxes fund Medicare, with a potential decline during recessions due to fewer workers. The Medicare Hospital Insurance Trust Fund may run out of money by 2036, affecting Part A benefits. Congress may not cut Medicare benefits due to the program’s popularity.



Read more at Nasdaq: Could a Recession Affect Medicare?