Medicare and Social Security go-broke dates are pushed back
The go-broke dates for Medicare and Social Security have been pushed back five years to 2036 as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday. Still, officials warn that policy changes are needed or the programs will become unable to pay full benefits to retiring Americans. Read more.
Why this matters:
Medicare covered more than 66 million people last year, with most being 65 and older. Once the fund’s reserves become depleted, Medicare would be able to cover only 89% of costs for patients’ hospital visits, hospice and nursing home stays or home health care.
Lawmakers have for years kicked Social Security and Medicare’s troubling math to the next generation. 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.
President Joe Biden responded to the report by saying that “as long as I am president, I will keep strengthening Social Security and Medicare.” The future of Social Security and Medicare has become a top political talking point as President Joe Biden and Republican former President Donald Trump both campaign for reelection this year.
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