According to the actuarial forecasts presented, health insurance, known in the United States as Medicare and which covers more than 65 million elderly and disabled people, will no longer be able to pay for hospital visits and stays. in retirement homes for all these people by 2031.
If nothing is done, Medicare will only be able to pay 89% of the benefits due in 2031.
In 2033, it will be the turn of the social assistance program to no longer be able to pay all the benefits to the 66 million pensioners who benefit from them today in the country. According to forecasts, only 77% of beneficiaries will be paid in 2033.
The document presented by the administrators of these two plans urges the government to take action to ensure the sustainability of these social safety nets, the costs of which are constantly increasing, because more and more aging Americans are becoming eligible for them.
Trustees Again Recommend Congress Address Projected Trust Fund Shortfalls to Phase in Necessary Changes [à son financement]
said Kilolo Kijakazi, acting commissioner of social security.
According to previous forecasts, Medicare should have gone into default starting in 2028. But according to new projections presented Friday by its administrators, the program could continue to pay benefits for three more years.
On the other hand, the date on which the social assistance program must fall dry has been brought forward by a year.
« If lawmakers do nothing, in less than 10 years more than 70 million recipients will face an average cut of 23% in their benefits. »
The Social Security Disability Fund, for its part, is doing better. It should not be depleted in the next 75 years, the actuaries predict.
The future of Medicare and welfare has become a hot political issue in the United States, especially as Democratic President Joe Biden prepares to campaign for re-election in 2024.
Putting the wealthiest to work
President Joe Biden’s administration wants to raise taxes on the wealthiest Americans to provide long-term funding for welfare and Medicare.
Photo : The Associated Press / Gregory Bull
Joe Biden has already pledged to fend off any attempts by Republicans to cut Medicare funding or benefits in order to balance public finances.
Instead, the president is proposing to raise taxes on Americans earning more than $400,000 a year to shore up funding for these important social safety nets.
Republican leaders, meanwhile, say they also have no plans to cut benefits, but they have yet to buy into a plan to keep the programs solvent.
Last year, however, members of the House Republican Review Committee proposed raising the age at which a person can apply for welfare and health insurance.
« The sooner we act, the easier it will be to secure the future of social assistance. »
Legislators should leave no stone unturned, and the good news is that there are plenty of reasonable options, both on the revenue and expenditure sides, to implement reforms that are fair, progressive and meaningful. common sense
believes Mr. Peterson.
For years, American politicians have deferred questions about funding Social Security and Medicare to the next generation. The last reform of social security benefits goes back some forty years.
AARP. Both programs face long-term funding needs, and Congress must act to ensure that Social Security and Medicare are there for the next generation.”,”text”:”The future of the funds should be a top priority for congressional leaders, says AARP’s Jo Ann Jenkins. Both programs face long-term funding needs, and Congress must act to ensure that Social Security and Medicare are there for the next generation.””>The future of the funds should be a top priority for congressional leaders, says Jo Ann Jenkins of theAARP. Both programs face long-term funding needs, and Congress must act to ensure that Social Security and Medicare are there for the next generation.
