Date Presented

Spring 5-18-2024

Document Type

Thesis

First Advisor

Dr. Beth Savage

Second Advisor

Dr. Michael Schnur

Third Advisor

Dr. Eric Kyper

Abstract

My thesis will focus on the accuracy of Medicare’s Hospital Insurance fund and Medicare Part C’s projections. Medicare has been under scrutiny in recent years, as costs are up and revenues are down, and a projected insolvency crisis looks likely for the organization. If Medicare’s projections are inaccurate, it could cause severe issues, as decisions that will significantly affect the program are made based on that data. In order to test the accuracy of the projections, a t-test will be used in order to determine if there is a significant difference between the actual yearly expenditures of both the Hospital Insurance fund and Part C, and the projected expenditures. If there is a significant difference between the sets of data and the actual values, it indicates that Medicare will have to change its systems of projection, which could lead the program into severe financial difficulty.

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