Latest news with #WindfallElimination
Time Magazine
6 hours ago
- Business
- Time Magazine
Social Security and Medicare Trust Funds Are on Track to Run Out in Less Than a Decade. Here's What to Know
Social Security and Medicare are expected to need to cut monthly benefits in less than a decade as the trust funds for both programs are on track to run dry earlier than previously predicted. A report released on Wednesday from the Social Security and Medicare Boards of Trustees pushed up the programs' go-broke dates, meaning the point at which they would not have enough money to fully cover benefits. The worsening projections are in part because of a new law impacting Social Security and increasing health care costs, according to the report. Here's what to know about the approaching funding cliffs. How long will Social Security stay solvent? The go-broke date for Social Security's trust funds was pushed up to 2034, from last year's estimate of 2035. The funds cover old age and disability recipients. The program covers more than 60 million people in the U.S. What about Medicare? Last year's report set the go-broke date for Medicare's hospital insurance trust fund as 2036. But the latest report pushed up that date to 2033. Medicare is a federal health insurance program that offers coverage for people 65 and older, as well as people with certain disabilities. More than 68 million people in the U.S. are enrolled in the program. The hospital insurance trust fund pays for Medicare Part A, which covers care provided in hospitals and skilled nursing facilities, as well as some in-home care. It also helps pay for hospice care. Why have the go-broke dates moved up? The report largely attributes the Social Security go-broke date being pushed up to a new law, the Social Security Fairness Act, which took effect in January. The law repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act, which 'increased projected Social Security benefit levels for some workers' and affected the go-broke date for Social Security's trust funds, according to the report. Last year's expenses for Medicare's hospital insurance trust fund were also greater than initially anticipated, according to the report, which contributed to the go-broke date for the program being pushed up. What happens after the go-broke dates? The funds hitting their go-broke dates doesn't mean that there won't be any funds to cover any benefits after that point. After 2034, Social Security would only have enough funds to cover 81% of benefits. After 2033, Medicare's hospital insurance trust fund would only be able to pay 89% of costs.
Boston Globe
12 hours ago
- Business
- Boston Globe
Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law
Advertisement The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare's troubling math to the next generation. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government's expenditures. 'Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,' the trustees state in the report. About 68 million people are enrolled in Medicare, the federal government's health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses. Advertisement Wednesday's report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago. Once the fund's reserves become depleted, Medicare would be able to cover only 89% of costs for patients' hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. The report said expenses last year for Medicare's hospital insurance trust fund came in higher than expected. Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033. The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA's trust funds. Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65. Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that 'there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' Advertisement Congressional Budget Office reporting has stated that the biggest drivers of debt rising in relation to GDP are increasing interest costs and spending for Medicare and Social Security. An aging population drives those numbers. Several legislative proposals have been put forward to address Social Security's impending insolvency. Associated Press reporters Amanda Seitz and Tom Murphy in Indianapolis contributed to this report.
Yahoo
12 hours ago
- Business
- Yahoo
Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law
WASHINGTON (AP) — The go-broke dates for Medicare and Social Security 's trust funds have moved up as rising health care costs and new legislation affecting Social Security benefits have contributed to earlier projected depletion dates, according to an annual report released Wednesday. The go-broke date — or the date at which the programs will no longer have enough funds to pay full benefits — was pushed up to 2033 for Medicare's hospital insurance trust fund, according to the new report from the programs' trustees. Last year's report put the go-broke date at 2036. Meanwhile, Social Security's trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034, instead of last year's estimate of 2035. After that point, Social Security would only be able to pay 81% of benefits. The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare's troubling math to the next generation. President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government's expenditures. 'Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,' the trustees state in the report. About 68 million people are enrolled in Medicare, the federal government's health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses. Wednesday's report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago. Once the fund's reserves become depleted, Medicare would be able to cover only 89% of costs for patients' hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. The report said expenses last year for Medicare's hospital insurance trust fund came in higher than expected. Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033. The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA's trust funds. Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65. Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that 'there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' Congressional Budget Office reporting has stated that the biggest drivers of debt rising in relation to GDP are increasing interest costs and spending for Medicare and Social Security. An aging population drives those numbers. Several legislative proposals have been put forward to address Social Security's impending insolvency. __ Associated Press reporters Amanda Seitz and Tom Murphy in Indianapolis contributed to this report.
San Francisco Chronicle
13 hours ago
- Business
- San Francisco Chronicle
Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law
WASHINGTON (AP) — The go-broke dates for Medicare and Social Security 's trust funds have moved up as rising health care costs and new legislation affecting Social Security benefits have contributed to earlier projected depletion dates, according to an annual report released Wednesday. The go-broke date — or the date at which the programs will no longer have enough funds to pay full benefits — was pushed up to 2033 for Medicare's hospital insurance trust fund, according to the new report from the programs' trustees. Last year's report put the go-broke date at 2036. Meanwhile, Social Security's trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034, instead of last year's estimate of 2035. After that point, Social Security would only be able to pay 81% of benefits. The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare's troubling math to the next generation. President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government's expenditures. 'Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,' the trustees state in the report. About 68 million people are enrolled in Medicare, the federal government's health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses. Wednesday's report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago. Once the fund's reserves become depleted, Medicare would be able to cover only 89% of costs for patients' hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. The report said expenses last year for Medicare's hospital insurance trust fund came in higher than expected. Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033. The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA's trust funds. Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65. Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that 'there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.'
Winnipeg Free Press
13 hours ago
- Business
- Winnipeg Free Press
Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law
WASHINGTON (AP) — The go-broke dates for Medicare and Social Security 's trust funds have moved up as rising health care costs and new legislation affecting Social Security benefits have contributed to earlier projected depletion dates, according to an annual report released Wednesday. The go-broke date — or the date at which the programs will no longer have enough funds to pay full benefits — was pushed up to 2033 for Medicare's hospital insurance trust fund, according to the new report from the programs' trustees. Last year's report put the go-broke date at 2036. Meanwhile, Social Security's trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034, instead of last year's estimate of 2035. After that point, Social Security would only be able to pay 81% of benefits. The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare's troubling math to the next generation. President Donald Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government's expenditures. 'Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,' the trustees state in the report. About 68 million people are enrolled in Medicare, the federal government's health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses. Wednesday's report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago. Once the fund's reserves become depleted, Medicare would be able to cover only 89% of costs for patients' hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. The report said expenses last year for Medicare's hospital insurance trust fund came in higher than expected. Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033. The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA's trust funds. Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65. Wednesdays Columnist Jen Zoratti looks at what's next in arts, life and pop culture. Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that 'there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' Congressional Budget Office reporting has stated that the biggest drivers of debt rising in relation to GDP are increasing interest costs and spending for Medicare and Social Security. An aging population drives those numbers. Several legislative proposals have been put forward to address Social Security's impending insolvency. __ Associated Press reporters Amanda Seitz and Tom Murphy in Indianapolis contributed to this report.
