The difficult economic times have "further deteriorated" the Medicare Trust Fund and the program that pays for Part A hospital services will be exhausted by 2017 unless there is "prompt action" to safeguard the program, according to a report released Wednesday, May 13th by the Medicare Board of Trustees.

The Part A fund will be exhausted two years earlier than the trustees predicted in last year's report because of "much lower projected payroll tax income as a result of the recession."

"Total Medicare expenditures were $468 billion in 2008 and are expected to increase in future years at a faster pace than either workers earnings or the economy overall," the report says.

"These projections demonstrate the need for timely and effective action to address Medicare's financial challenges" with consideration of reforms "in the relatively near future.  The sooner the solutions are enacted, the more flexible and gradual they can be."

Read the full story by HealthLeaders Media's Cheryl Clark.