Medicare and Social Security go-broke dates are pushed back in a 'measure of good news'

[BumRushDaShow]

Source: AP

Updated 5:31 PM EDT, May 6, 2024


WASHINGTON (AP) — The go-broke dates for Medicare and Social Security have been pushed back as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday. Still, officials warn that policy changes are needed lest the programs become unable to pay full benefits to retiring Americans.

Medicare’s go-broke date for its hospital insurance trust fund was pushed back five years to 2036 in the latest report, thanks in part to higher payroll tax income and lower-than-projected expenses from last year. Medicare is the federal government’s health insurance program that covers people age 65 and older and those with severe disabilities or illnesses. It covered more than 66 million people last year, with most being 65 and older.

Once the fund’s reserves become depleted, Medicare would be able to cover only 89% of costs for patients’ hospital visits, hospice care and nursing home stays or home health care that follow hospital visits.

Meanwhile, Social Security’s trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2035, instead of last year’s estimate of 2034. Social Security would only be able to pay 83% of benefits.

Read more: https://apnews.com/article/social-security-medicare-entitlements-treasury-35a2913a3f21a3b0ff40f2c88cbf9cbc

[cstanleytech]

1. Meanwhile the wealthy will become even more wealthy while millions of Americans are pushed into poverty.

[surfered]

2. Getting rid of Medicare Advantage plans and returning to traditional Medicare...

…would help too.

[Old Crank]

3. It would

The easiest solution is to increase the max salary to pay into the funds.
Not a single GOP will vote for it. So it is dead in the house. Unless we can get voters to start screaming.

[moose65]

5. There is no maximum salary for Medicare taxes

Everyone pays that on all income. Social Security, not so much.

[CousinIT]

4. They WILL NOT BE BROKE

They will still be able to pay benefits, but they will be reduced by about 25% if no action is taken.

Media outlets that say they will be "broke" are deliberately misinforming people so that they no longer believe these programs can work. It's easier to take them away when that's the case.

BAD reporting.

Here are the FACTS: https://socialsecurityworks.org/social-security-faqs/

[Jacson6]

6. Medicare & SSA will never go broke

The worse that can happen is that SSA payments can be reduced by 25% and some medicare procedures will be eliminated. However, the Congress can remove the wage cap, increase FICA taxes and issue bonds to provide benefits. IMHO.

[TexasBushwhacker]

7. Yes, most people don't understand how SS works

By law, and it's been this way since the beginning, Social Security invests any overage they have in the safest securities on the planet - US Treasury Notes. They don't "steal" from Social Security funds. They invest in US T Bills which pay a small amount of interest. When the T Bills hit their due date, the funds are paid to SS or rolled over into new securities.

The problem right now is that because of growing wealth inequality, there aren't enough wages subject to SS taxes. There are many ways to address this. They could just raise or eliminate the cap or they could make other kinds of income subject to SS taxes, like capital gains above a certain amount.

Social Security is not just about paying taxes to fund your personal benefits, and IT NEVER HAS BEEN. Like its original name, the "Old-Age, Survivors, and Disability Insurance", it is INSURANCE so that senior citizens, widows and widowers dependant children and the disabled do not have to live in poverty. It's the price we all pay for living in a civilized society.

[LudwigPastorius]

8. That's OK.

I wasn't planning on living past the age of 72 anyway.

[myohmy2]

9. I don't...

...know the numbers but us Boomers were/are a pretty big glut through the system...

...as we croak off, that should reduce the demand on the system quite a bit...

...don't get me wrong, I'm 76 and plan to live a lot longer...but the most important thing is don't let those bastards cheat or steal SS and Medicare away from you before you get...and they'll do it with privatization...

...I never bitched about paying taxes because I knew SS and Medicare were waiting for me at the end...

...a guaranteed waiting for me...