What is the long-run financial problem for Medicare?

What will be an ideal response?

Medicare is financed by payments into the system from current workers, with half the tax paid by workers (1.45%) and half the tax paid by employers (1.45%). The payments are made to current Medicare retirees, with any excess going into a Medicare Trust Fund. Medicare will experience financial problems in the future because the number of workers paying into the system is declining and the number of retirees receiving benefits is rising. Medicare is expected to exhaust its trust funds by 2024 and the percent of Medicare benefits covered by the Medicare tax will decline from 97 percent in 2025 to 72 percent in 2035.