The Nation : Medicare Termed Sound

The giant Medicare hospital trust fund, which the Reagan Administration last year predicted would go bankrupt by 1991, now looks financially sound until near the end of the century, government sources told the Washington Post. Lower inflation rates and tighter controls over hospital reimbursements from Medicare have caused the change, hospital industry officials said. The Social Security trustees are expected to declare shortly in their annual report to the President and Congress that the trust fund will remain solvent at least another decade and probably until 1997-98.