politics
WASHINGTON (AP) — Bankruptcy dates for Medicare and Social Security have been pushed back as an improving economy contributed to modified projected depletion dates, in response to the Social Security and Medicare Trustees' annual report Monday.
Still, officials warn that policy changes are needed to stop programs from paying full advantages to retiring Americans.
Medicare's opening date for its hospital insurance trust fund was pushed back five years to 2036 in the newest report, due partly to higher payroll tax revenue and lower-than-expected spending last 12 months. Medicare is the federal government's medical insurance program that covers people age 65 and older and folks with serious disabilities or illnesses. Last 12 months, greater than 66 million people were recorded, most of whom were aged 65 and over.
Once the fund's reserves are depleted, Medicare would find a way to cover only 89% of the prices of hospital visits, hospice care and nursing home stays or home health care following hospital visits.
Meanwhile, Social Security trust funds — which cover retirement and disability recipients — will not find a way to pay full advantages starting in 2035, slightly than 2034, as estimated last 12 months. Social Security would only find a way to pay 83% of advantages to pay.
Social Security Administration Commissioner Martin O'Malley called the report “kind of good news” but told The Associated Press that “Congress still needs to act to prevent what is expected to be a 17% decline without action.” Cutting people’s Social Security advantages.”
About 71 million people – including retirees, disabled people and youngsters – receive Social Security advantages.
For years, lawmakers have passed along the troubling math of Social Security and Medicare to the following generation. The last reform of Social Security advantages got here about 40 years ago, when the federal government raised the eligibility age for this system from 65 to 67. The eligibility age for Medicare has never modified, and individuals change into eligible for health coverage after they turn 65.
Congressional Budget Office reports say the largest drivers of debt-to-GDP increases are rising interest costs and spending on Medicare and Social Security. An aging population is driving these numbers.
The recent report projects that Medicare income might be higher than last 12 months since the variety of covered staff and average wages might be higher. The report also notes that spending is predicted to fall. This is primarily as a result of a policy change regarding billing for Medicare Advantage rates in addition to lower-than-expected spending on inpatient hospital and residential health services.
Medicare Advantage plans are a version of the federal health insurer program.
A March 2023 Associated Press-NORC Center for Public Affairs Research poll shows that the majority U.S. adults oppose proposals that may cut Medicare or Social Security advantages and that a majority support raising taxes on the nation's top earners to maintain Medicare running.
The way forward for Social Security and Medicare has change into a top political talking point as each President Joe Biden and former Republican President Donald Trump seek re-election this 12 months.
Biden, a Democrat, has vowed to reject any Republican-led effort to chop Medicare or Social Security advantages to offset the deficit. He proposes raising taxes on people making $400,000 or more a 12 months to shore up Medicare. However, he didn’t submit a social security plan.
In an interview with CNBC in March, Trump suggested he was open to program cuts. The former president said: “You can do a lot in terms of entitlements and cuts.”
Nancy Altman, president of Social Security Works, an advocacy group for the Social Security program, said Monday's report shows that “Congress should take action sooner rather than later to ensure that Social Security can continue to pay full benefits for generations to come.” .”
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