According to the 2012 Medicare Trustees’ Report, in just over a decade, the Medicare HI Trust Fund is projected to have more cost than it does revenue. Many actuaries predict an even earlier eclipse. The amount of the baby boomers enrolling in the program and escalating hospital costs have been a continued stress on the outlook of the program. However, the report's estimated likely time at which the program will become insolvent is based on assumptions according to the current legislation, including one that Congress will allow a significant fee cut to physicians. The Affordable Care Act improved the outlook for Medicare through entering into more innovative programs, reducing payments to Medicare Advantage issuers, and increasing taxes for those with high incomes. This improved solvency outlook is made despite benefit improvements to gradually fill in the Medicare Part D donut hole and add some preventive services. In this session, we will review the major assumptions driving the 2012 Medicare Trustees’ Report, discuss reasonable alternate scenarios, and provide an overview of solvency solutions that the nation’s elected officials must face sooner or sooner.