Medicare Faces Insolvency in 2026, Three Years Earlier than Last Year's Projection

Medicare Social Security running out of money faster than expected

Medicare and Social Security are running out of money more quickly than expected, officials said Tuesday.

The Social Security system is in nearly the same shape as past year for its retirement benefits and in a better position for its disability benefits, the program's trustees reported Tuesday.

The combined Social Security trust funds are slated to run dry in 2034, and that will force benefits to be cut more than 20 percent.

Together, the two programs have been credited with dramatically reducing poverty among older people and extending life expectancy for Americans.

At the times the combined reserves are depleted the continuing income of the trust funds would be sufficient to pay 79 percent of scheduled benefits.

A new report is heightening concerns about the financial future of Medicare.

Mnuchin said in a statement that there's time to fix the problems.

Medicare's problems are widely seen as more hard to solve. Mnuchin is one of the trustees of Social Security and Medicare, a group that includes three Trump Cabinet officers and that released the annual report.


Meanwhile, Medicare Part B, which helps seniors pay for doctor's bills and outpatient expenses, is funded by a combination of premium payments and money from general federal revenue.

The trustees estimate a 2.4 percent cost of living increase for beneficiaries in December, up from 2 percent a year ago. The public trustee posts are now unfilled.

The Congressional Budget Office said in April that federal deficits and debt would soar in the coming decade, after passage of the tax overhaul and legislation to increase military and domestic spending. The White House said the cuts would offset the initial drop in government revenue by spurring greater economic growth.

But speaking to reporters on Tuesday, Treasury officials said the cuts were set to decrease revenues for both programs.

In principle, the U.S.is supposed to be paying forward its Social Security and Medicare obligations by building up trust funds to cover future costs.

"Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare", the trustees concluded.

House Speaker Paul Ryan, R-Wis., has always been an advocate for overhauling the programs, introducing a voucher-like system for Medicare and calling for partially privatizing Social Security. In any case, Republicans may have damaged their credibility on budget issues by voting to increase government spending and cut taxes. Their formula is likely to involve tax increases to help keep the programs solvent.

Related News:

  • Trump keeps G7 attendance short at tense summit

    Trump keeps G7 attendance short at tense summit

    Canada and Mexico, the other members of the 1994 pact, have been frustrated by the slow pace of talks to renegotiate NAFTA. The president repeated his tough stance on tariffs, saying allies had been "taking advantage" of the USA on trade.
    Prince Harry and Meghan Markle attend Trooping the Color ceremony

    Prince Harry and Meghan Markle attend Trooping the Color ceremony

    As the future king began giggling when the Royal Air Force flew past the palace, his older cousin could be seen shushing him. This year, the newest addition to the ceremony was, of course, the Duchess of Sussex Meghan Markle .
    Anthony Bourdain, chef and TV host, dead at 61

    Anthony Bourdain, chef and TV host, dead at 61

    And yes, he also defended his partner Asia Argento when she called out Alec Baldwin for defending and protecting Harvey. It came three days after fashion designer Kate Spade died of apparent suicide in her Park Avenue apartment in NY .
  • Anthem Release Date Officially Announced, Pre-Order Details Revealed

    Whether plunder, revenge, or glory lures you onward, your choices will irrevocably change you - and the world around you. It's an interesting move by BioWare, which seems to be positioning Anthem as the most story-rich of the big hobby games.
    Colby Covington Quotes: 10 Craziest Things UFC Fighter Has Said

    Colby Covington Quotes: 10 Craziest Things UFC Fighter Has Said

    Conor McGregor's UFC 224 stint did not push through after he was involved in a bus attack during UFC 223's media day in NY . He looks renewed in his quest for another UFC Title, and is riding a 3 fight win streak since losing to Tony Ferguson.

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

    Trudeau said he would continue to stand up for Canadian dairy producers and the country's supply management system. Trudeau addressed the president's Twitter blasts while visiting Quebec's Saguenay region on Thursday.
  • At Least 62 Dead After Volcano Erupts In Guatemala

    At Least 62 Dead After Volcano Erupts In Guatemala

    Earlier on Sunday, the volcano spewed black smoke and ash into the sky, prompting the evacuation of about 100 people. Hilda Lopez said the volcanic mud swept into her village of San Miguel Los Lotes, just below the mountain's flanks.

    Anthem Has No PvP, BioWare "May" Look Into it

    If indeed a beta is being planned for Anthem , it's likely that it won't arrive until late 2018, or perhaps even early 2019. The only game with a chance to receive as much screen time as Anthem is probably the recently announced Battlefield V.
    China celebrates unity within Eurasian SCO bloc as G7 struggles with Trump

    China celebrates unity within Eurasian SCO bloc as G7 struggles with Trump

    India favours projects such as the International North-South Transport Corridor for greater access to the central Asia region. The SCO has two sub-divisions including Regional Anti-Terrorist Structure (RATS) and SCO Secretariat.
  • Real Madrid Unconcerned As Ronaldo Eyes Summer Exit

    Real Madrid Unconcerned As Ronaldo Eyes Summer Exit

    If they get a chance to sign either Cristiano Ronaldo or Gareth Bale this summer, Manchester United would rather sign Bale . I understood it as a joke from Sergio, everybody saw, there's a video with Sergio saying this.
    Andre Iguodala out for Golden State in Game 1 of NBA Finals

    Andre Iguodala out for Golden State in Game 1 of NBA Finals

    Stop me if you've heard this one: The Golden State Warriors will play the Cleveland Cavaliers in the best-of-seven NBA Finals . An important face was missing from the moment: Andre Iguodala . "Grinding away at the process", Iguodala said.

    Blurred Lines: The SEC and Cryptocurrency Exchange Coinbase Eye Crypto Securities

    Revealed earlier today, SEC Chairman, Jay Clayton confirmed that ICOs are securities and made clear that digital assets should be regulated with equivalent scrutiny.


Most liked

Kim Jong Un's private jet en route to Singapore, data indicates
He also praised the North Koreans , saying they have been "really working very well with us" during preparations for the summit . President Donald Trump , a source involved in the planning of the trip said Friday.

United Nations sanctions for people smugglers in Libya
Smugglers have taken advantage of insecurity in Libya to move hundreds of thousands of migrants by sea to Europe. The black-listed culprits committed serious human rights abuses against migrants, including women and children.

Yankees visit Blue Jays for brief series
But for some reason Smoak broke for home on a routine grounder to third by Kevin Pillar and was thrown out easily. Yankees left-hander CC Sabathia allowed two runs and three hits (two homers) over seven innings to earn the win.

Justify Wires Belmont to Become 13th Triple Crown Winner
The Bill Mott-trained Hofburg finished 1 3/4 lengths behind Gronkowski , holding third by a neck over Vino Rosso. Justify's stunning rise puts him in the pantheon of great horses. "There's no one more deserving than him".

TV HBO Greenlights Game of Thrones Prequel Pilot
The story of the new GoT show has been penned by both Goldman and Martin, while the teleplay has been written by Goldman. It will chronicle 'the world's descent from the golden Age Of Heroes to its darkest hour, ' according to HBO .

FCA to launch investigation into TSB's IT failures
Referring to the FCA's comments, chair Nicky Morgan said that TSB had "unfortunately earned the epithet "Truly Shambolic Bank".

Origin Access Premier: Official Reveal Trailer, EA PLAY 2018
Origin Access Premiere bringing new games to subscribers completes that offering in a compelling and disruptive way. The new service is meant to go live towards the end of summer 2018.

Warriors complete sweep of Cavs for 3rd National Basketball Association title in 4 years
After dropping a monstrous 51 points in Game 1 of the Finals, James' approach did appear different in Games 2, 3, and 4. I just appreciate what he's done for us this season.

It Took Six Minutes For E3's First Battle Royale Announcement
EA also announced that it will ditch the premium pass model for Battlefield 5 in favour of cosmetic upgrades and free maps. The battle royale format mode will be called "Royale", although no further details were revealed during conference.

Kim, Trump lookalikes ham it up at Singapore mall
The Kim sit-down comes as Trump's global negotiating skills have faced their toughest tests to date with mixed results. As CBS News correspondent Ben Tracy reports from Singapore , there is plenty of buzz surrounding the summit .

Florida Stopped Gun Permit Checks for More Than a Year
Rick Scott, said the governor's office was never provided a copy of the inspector general's report. The department called her a former employee, but would not confirm whether she was sacked .

Joseph Parker announces next fight
Whyte's seven fight win streak was capped by a dominant and scary knockout victory over Lucas Browne in March , 2018. Parker is eager to get back into action and wants a fight that is going to help get him back into title contention.

Taliban announce cease-fire over Eid holiday for 1st time
The government cease-fire will begin on June 12 and last through Eid al-Fitr holiday, June 19, not including al Qaida or ISIS. Provincial police spokesman Enhamuddin Rahmani confirmed the death toll and said eight Taliban fighters were also killed.

The Heart-Wrenching Robin Williams Documentary Trailer Debuts From HBO
The network describes it as, "A amusing , intimate and heartbreaking portrait of one of the world's most beloved and inventive comedians".

GGG Willing To Have A 55-45 Split For Canelo
Jacobs (34-2, 29 knockouts) gave Golovkin a good fight in March 2017 at Madison Square Garden, losing by decision and ending Golovkin's 23-bout knockout streak.