“Social Security’s total income is projected to exceed its total cost through 2019, as it has since 1982”, the report said. “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”.
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For instance, she has said she wants to shore up Social Security, but then says she wants to expand benefits, which increase the program’s costs.
An estimated 91% of Americans aged 65 or older receive Social Security benefits-the average annual benefit for a retiree is about $16,000.
A statement from the trustees (there are only four; the two “public” trustees spots are open) argued that “Both Social Security and Medicare face long-term financing shortfalls under now scheduled benefits and financing”, and urged lawmakers to “take action sooner rather than later to address these shortfalls, so that a broader range of solutions can be considered”.
The Journal reports Medicare’s trust fund is projected to face depletion earlier than was forecast previous year because of changes in projected incomes and costs.
In more grim news, the trustees say that some Medicare beneficiaries will face sharply higher Part B premiums for outpatient care.
House Republicans say significant reforms are needed to protect the government health insurance program for seniors, which covered 53.8 million beneficiaries and cost $613 billion in 2014.
Higher earners would pay more.
But the exhaustion date is still 11 years later than had been projected before Congress passed the Affordable Care Act, now known as Obamacare. The final numbers will be released this fall.
That’s because some hospitals and nursing homes may not be able to make money under payment rates now set for Medicare.
In addition to Lew, the Social Security and Medicare trustees are Health and Human Services Secretary Sylvia Burwell, Labor Secretary Thomas Perez and acting Social Security Commissioner Carolyn Colvin.
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“Now is the time for people to engage in the important national conversation about how to keep Social Security strong”. So are Democratic presidential candidates Hillary Clinton and Bernie Sanders. Two public trustee positions are vacant.
