Social Security and Medicare Face 15-Year Shortfall
Costs will exceed income in 2020
The Social Security programs’ costs will exceed its income in 2020 for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits. The good news is that 2020 is two years later than officials projected just a year ago.
But by 2035, the reserves will be depleted and Social Security will no longer be able to pay its full scheduled benefits, according to the latest annual report by the trustees of Social Security and Medicare released Monday. When that happens, enrollees would face a roughly 25 percent cut in benefits.
The part of Medicare that pays for in-patient hospital and hospice care will run out of full funding in 2026. At that point, the program would pay a diminishing amount of reimbursement for medical costs. Medicare Parts B and D are expected to be well-funded for the foreseeable future.
- For the nation’s lawmakers to address the financial issues around Social Security and Medicare in a fair and timely way.
For the trustees of the Social Security programs to work to ensure against fraud and abuse in the system.