Social Security and Medicare annual report warns of coming crisis

Report warns Medicare will become insolvent in 2026

The solvency of the Medicare trust fund, the main U.S. public health insurance program, deteriorated over the last year and could be exhausted by 2026 - two years earlier than previously estimated.

Centers for Medicare and Medicaid Services Administrator Seema Verma on Tuesday urged Congress to examine the Medicare proposals in President Donald Trump's fiscal 2019 budget, saying in a statement that they would bolster the integrity of the program.

However, as now projected, it is highly unlikely that economic growth absent larger reforms could solve the programs' huge budget quagmire.

The Medicare trust fund will be depleted in 2026, the administration said.

The report also stated this year Social Security's total cost is projected to exceed its total income for the first time since 1982, and will remain higher into the future. Lackluster economic growth in previous years, coupled with an aging population, has contributed to the projected shortages for both Social Security and Medicare. After that, the government predicts it will be able to pay 91 percent of promised benefits.

In 16 years, Social Security will have to cut benefits by 21%if lawmakers do nothing to cure the program's long-term funding shortfall.

Those living off of Social Security will not likely be "dancing in the streets" with the anticipated 3% COLA, Johnson said, despite the fact that over the past nine years the COLAs have averaged just 1.2%.

More than 60 million Americans benefit from both programs, which provide a guaranteed income and healthcare for many retirees and the disabled. Financed with payroll taxes collected from workers and employers, Social Security and Medicare account for about 40 percent of government spending, excluding interest on the federal debt. Nor has he endorsed higher taxes to finance the programs, as some Democrats have suggested.

The White House is required by law to tell Congress about how it will ensure Medicare's long-term solvency if official projections show a worsening in the program's long-term financing.

The country's main welfare program for retirees, Social Security, also faces an uncertain future. Medicare spent $710 billion in 2017, according to the report, making it the single biggest purchaser of health services in the U.S. The trustees include Treasury Secretary Steven Mnuchin and Health and Human Services Secretary Alex Azar.

"The HI trust fund does not meet either the trustees' test of short-range financial adequacy or their test of long-range close actuarial balance", the report stated.

Medicare's hospital insurance fund, meanwhile, will become insolvent by 2026, or three years sooner than projected last year. "The programs remain secure", he said.

Related News:

  • Eddie Jones clashes with South Africa fans after England's 42-39 loss

    Eddie Jones clashes with South Africa fans after England's 42-39 loss

    England had amassed a scarcely-believable 24-3 lead by the 18th minute. I thought they attacked well and we'll keep working on it'.

    Rickie Fowler gets engaged to girlfriend Allison Stokke

    Stokke accompanied Fowler at the 2017 Presidents Cup and caddied for him in the Masters Par-3 Contest in April. The 29-year-old Stokke was an All-American high jumper at Cal and officially began dating Fowler last year.

    Emmanuel Macron Says 'Things Moving Forward' After G7 Trade Spat

    Russian Federation was booted from the then-G8 in 2014 over its annexation of Crimea, which world leaders condemned as "illegal". It's like the gig is up", he said during the press conference. "We're getting them straightened out, slowly but surely".
  • Khloé Kardashian Attends Tristan Thompson's Game

    Khloé Kardashian Attends Tristan Thompson's Game

    According to the insider, her famous sisters are doing their best to stand by Khloe, but are finding it hard with her so far away. Babe that's not wisdom at all because you're assuming you know who I'm talking about and you're assuming you know my feelings.
    Lyon say Nabil Fekir transfer negotiations with Liverpool have ended

    Lyon say Nabil Fekir transfer negotiations with Liverpool have ended

    Fekir is one of the best attacking players in Europe who would be a great signing or Liverpool in the summer transfer window. After all, Linda Pizzuti Henry did not have to reply to the Liverpool fan's message - she chose to do so.
    Hyundai Grandmaster concept previews a full-size SUV

    Hyundai Grandmaster concept previews a full-size SUV

    Hyundai unveiled the HDC-1 Le Fil Rouge concept at the Geneva International Motor Show last March. The name Grandmaster is inspired by the game of chess.
  • Tyson recalls 3000 pounds of chicken due to possible plastic contamination

    The chicken being recalled is not available to purchase in grocery stores, but was shipped to restaurants for sale in menu items. The USDA says the products have establishment number "P-746" on the packaging.

    EA at E3 2018

    Unravel Two was revealed - a sequel to 2016's lovely woolly adventure, but this time, Yarny's got a buddy. Little else was shown, apart from a tank driving clean through several buildings, which is always nice.
    Democrats urge US House vote on net neutrality rules as end nears

    Democrats urge US House vote on net neutrality rules as end nears

    A spokeswoman for Ryan did not immediately respond when asked to comment on the letter . But House Democrats will have a harder time bringing the bill to the floor.
  • Chris Bosh believes former teammate LeBron James could join the Rockets

    Chris Bosh believes former teammate LeBron James could join the Rockets

    And that those Warriors, sans the 2017 finals MVP Kevin Durant , aren't to be compared with the juggernaut he is facing now. Additionally, Clint Capela is a restricted free agent, and the Rockets would like to re-sign the 24-year-old center.
    Unruly female passenger forces Virgin flight to divert

    Unruly female passenger forces Virgin flight to divert

    One passengers told The West Australian that "a passenger has gone nuts and threatened to kill everyone on board". The plane was forced to land at Adelaide airport where the violators detained by law enforcement officers.
    Redmond O'Neal, son of Farrah Fawcett, charged with attempted murder

    Redmond O'Neal, son of Farrah Fawcett, charged with attempted murder

    Farrah Fawcett's and Ryan O'Neal's son, Redmond O'Neal, has been arrested for holding up a Los Angeles 7-Eleven. When an employee confronted him, the suspect "became belligerent" and pulled out a folding knife, police said.


Most liked

Federation Internationale de Football Association snatches Champions League and Europa League licence from PES
Are you exhausted of hearing Martin Tyler compliment Alan Smith on his heading ability? Then stop what you are doing. Broadcast overlays have been freshened up, and there's a new commentary team featuring Derek Rae and Lee Dixon.

Buckling floor near Brisbane Coles store causes shopping centre evacuation
A Brisbane Coles store has been evacuated after a large section of the floor started "collapsing" according to witnesses. One woman said her husband was told to move his vehicle from the double level auto park beneath the store.

Trump and Kim Jong-un impersonators meet in Singapore (PHOTOS, VIDEO)
The US president claimed "open hostility" forced him to pull out of the summit . On rating G7 friendships: "I would say that the level of relationship is a 10".

Intricate communication strategies seen in male dolphin alliances
Dolphins are intelligent creatures that communicate with high-frequency whistles and are capable of forming strong relationships. She found that dolphins responded to recordings of their own signature whistle , but not those of other dolphins.

High school golfer self-reports violation, loses state title
Wynja told her coach, and the two took the news to tournament directors. A Sioux Falls golfer's act of integrity is grabbing national headlines.

U.N. Imposes Sanctions on 6 for Trafficking Libyan Migrants
The black-listed culprits committed serious human rights abuses against migrants, including women and children. The sanctions were a result of a Dutch proposal backed by the United States, France, Germany and Britain.

Former Fleetwood Mac guitarist Danny Kirwan dies at 68
He then played on their third album, Then Play On , released in September 1969, which reached #6 on the United Kingdom charts. In 1972, during the tour for Bare Trees , Danny was let go due to his struggles with substance abuse.

Downed power lines sparked deadly California fires
The Cherokee Fire , in Butte County, started the evening of October 8 and burned a total of 8,417 acres, destroying 6 structures. The Norrbom, Adobe, Partrick, Pythian and Nuns fires were part of a series of fires that merged in Sonoma and Napa counties.

'Rick And Morty' Created A Custom Birthday Song For Kanye West
Kim Kardashian had quite a cuddling session with her three kids on Saturday, June 9. She chimed in with a tweet of the full song for your listening pleasure below.

Chef hurled Sriracha over customer after she tried to pay with coins
Carlotta Washington after she says a food cart employee sprayed her with hot sauce. "It was in my eyes and all on my skin". As Washington continues to wrap her mind around what happened, she hopes others will continue to speak up.

Kawhi Leonard, Gregg Popovich to meet before NBA Draft
Wojnarowski appeared on ESPN's "NBA Draft: On the Clock" Tuesday and discussed what the Spurs plan to do in this year's draft. San Antonio's got to decide whether they want to offer him that five-year, $219 million super-max contract.

Florida Failed on Background Checks for an Entire Year
A Putnam spokesman said Friday that the employee responsible for the problem had been fired. Wilde did report the log-in failure, investigators say, but failed to follow up.

Western Conference finals Game 7: Rockets vs. Warriors
When the Warriors get rolling, the only thing that appears capable of slowing their progress is their own complacency. Kevon Looney started again in place of Iguodala, but coach Steve Kerr went to McGee after the break.

Jeff Horn Vs. Terence Crawford Betting: Odds For Welterweight Bout
You can't just be looking for the knockout all the time, and I just have to fight the best fight I can and rely on even scoring. Crawford (32-0-0) became the undisputed junior welterweight champion a year ago after knocking out Julius Indongo .

Sea of Solitude is coming in early 2019
How can she return to being human? Sea of Solitude is slated for an early 2019 release on PlayStation 4 and Xbox One. In " Sea of Solitude ", Kay becomes one of these monsters, and must find her way back to her normal self.