Social Security and Medicare annual report warns of coming crisis

Social Security and Medicare annual report warns of coming crisis

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:

Most liked

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.

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.

CrossFit Inc. has fired Russell Berger
Since the cancellation, the coaches at the affiliate have rescheduled the workout for another location for the evening of June 7. In a statement to The Washington Post , Mr Berger said he regretted putting CrossFit in a "difficult position" .

Command & Conquer Returns As Free-To-Play Mobile Title, Rivals
The game will require combinations of factions to succeed, using tanks, aircraft, and behemoths to fight for control. Getting to it and firing two missiles at the enemy's base will net players a win.

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.

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.

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.

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.

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.

Kim has a 'one-time shot'
He added that he wants to accomplish more than that, "but I think that will take a little bit of time ". Still, questions remain about what a deal on the North's nuclear weapons could look like.

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 .

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.

Warriors rout Cavaliers to complete NBA Finals sweep
He has taken Cleveland to the NBA Finals now five times , and this now looks certain to be his fourth loss in those. LeBron James , most definitely, does not want to get swept in the NBA Finals for a second time .