Medicare Fund Projected To Run Out By 2031; Social Security By 2033
An annual report by the Boards of Trustees of the Social Security and Medicare trust funds warns that both could become insolvent within the next decade without congressional action. If the Medicare Hospital Trust Fund falls short, recipients would face automatic cuts to benefits.
AP:
Medicare, Social Security Could Fall Short Over Next Decade
The financial safety nets millions of older Americans rely on — and millions more young people are counting on — will run short of money to pay full benefits within the next decade, the annual Social Security and Medicare trustees report released Friday warns. Medicare, the government-sponsored health insurance that covers 65 million older and disabled people, will be unable to pay full benefits for inpatient hospital visits and nursing home stays by 2031, the report forecast. And just two years later, Social Security won’t have enough cash on hand to pay out full benefits to its 66 million retirees. (Seitz and Hussein, 3/31)
Reuters:
U.S. Social Security Fund Seen Depleted In 2033, Year Earlier Than Previous Estimate
The U.S. Social Security system's main trust fund's reserves will be depleted in 2033, one year earlier than estimated last year, while Medicare's finances have improved slightly, reports from the programs' trustees showed on Friday. The Medicare Hospital Trust Fund reserves are now expected to be depleted in 2031 compared to an estimate of 2028 made last year, due in part to new estimates showing higher revenue data. (3/31)
The Washington Post:
Social Security Funding Crisis Will Arrive In 2033, U.S. Projects
Benefits won’t stop when the programs reach insolvency, but the government will be able to pay only a portion of the amount to which people are entitled. The trustees report predicts that, starting in 2033, Social Security’s old age and survivors insurance trust fund will be able to pay 77 percent of that amount. Starting in 2031, Medicare’s hospital insurance will be able to pay 89 percent of the scheduled benefits for hospital services, the report states. (Stein and Goldstein, 3/31)
Bloomberg:
Will I Get Social Security? Insolvency Seen Coming 2033, Year Sooner Than Before
Congress has assorted options—like increasing taxes and reducing benefits—to reduce or eliminate both programs’ long-term financing shortfalls, but lawmakers have made it clear action isn’t imminent. Some Republicans initially called for a debt-limit deal this summer to also address entitlement solvency, possibly setting up a bipartisan panel to negotiate policy changes. But President Joe Biden and Speaker Kevin McCarthy (R-Calif.) have since said changes to Social Security and Medicare aren’t under discussion in debt-limit talks. (Pugh and Fitzpatrick, 3/31)
How government cuts are hurting Americans —
The Washington Post:
As Pandemic Benefits Wind Down, A Reckoning For Households And Economy
Rhonda Smith is already struggling to get by on her fast-food salary. She’s behind on rent and cellphone payments, and she can no longer afford fresh fruits or vegetables. Now the 54-year-old in Bristol, Va., is among millions of Americans who may lose Medicaid coverage in the coming months, following a rollback in pandemic-era policies on Friday that adds uncertainty and strain to her finances. “My insulin’s $3,000 a month and, without Medicaid, that’s just not possible,” Smith said. “I’m barely getting by as it is, eating hot dogs and oatmeal most days. There’s nowhere left to cut.” (Bhattarai, 4/2)
Mlive.com:
Making Due On $23 A Month For Food: SNAP Drop Leaves Michigan Families Scrambling
Steep cuts to food benefits hit Michiganders this month as a pandemic program wound down. Some saw their benefits drop to the minimum $23 a month. Some are turning to food banks to fill their cupboards. And others are planning to rework budgets and use coupons to stretch their grocery dollars as food prices have skyrocketed. (White, 4/1)
