Anyone familiary with Medicare budget?

The Medicare prescription drug plan is scheduled to take effect 1/1/06. There has been NO payroll tax increase to cover the cost of this program.

The summary of the Trustee Report at
http://www.ssa.gov/OACT/TRSUM/trsummary.html
says
>>
Part B of the Supplementary Medical Insurance (SMI) Trust Fund, which pays doctors' bills and other outpatient expenses, and the new Part D, which pays for access to prescription drug coverage, are both projected to remain financed into the indefinite future because current law automatically sets financing each year to meet next year's expected costs. However, expected rapid cost increases will result in a rapidly growing amount of general revenue financing--projected to rise from just under 1 percent of GDP today to 6.2 percent in 2079--as well as substantial increases over time in beneficiary premium charges.
>>

It specifically says "current law automatically sets financing each year to meet next year's expected costs".

Can someone please explain how this works? Without a payroll tax increase, where will the money come from to pay for the new prescription plan? From general revenue -- i.e., income taxes?
If so, what is the projected effect on the deficit for next year?

Thanks.

which are called PART A, and PART B.

Deficit effect is an increase in the deficit of 600 Billion over 5 years.

Where does the financing for Part D come from?

There was no increase in the payroll tax.

:-)

:-)

alphabet.

Maybe Part C is a SECRET benefit for CIA types.