In their latest report, Social Security and Medicare trustees project that the funds for the two government programs will be tapped out in a few years.
Here are a few important points from the report:
- The combined trust funds for Social Security will be empty by 2034
- The trust fund for Medicare Part A will run dry by 2026
- Medicare Part B and Part D will be financed in full indefinitely, but their costs are scheduled to grow substantially
Social Security will only be able to pay 79 percent of the benefits promised to retirees and disabled beneficiaries in 2034. Worse off is Medicare Part A, which by 2026 will only be able to pay 91 percent of its promised benefits.
To save Social Security and Medicare from running dry for decades longer than the trustees predict, the programs can do the following:
- Raise employees’ and employers’ payroll taxes paid into the programs, and/or
- Cut benefits for some or all beneficiaries
At Milestone, many of our clients are victims of catastrophic injuries that require the financial assistance of needs-based government programs. Without Social Security and Medicare, many individuals and their families will be either strapped for funds or have to do without the things this income pays for, such as disability-related expenses and hospital and nursing home costs for seniors.
Congress needs to make a decision soon, or it will be difficult to put Social Security and Medicare back on track to help beneficiaries the way they promised.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).