Here is the good news: trustees for the Medicare program said Friday that its hospital insurance fund would be exhausted in 2026, two years later than was estimated a year ago. However, Social Security’s reserves are still expected to run out by 2033, just as earlier forecasts said.
The marginally better snapshot of the financial health of these two politically sensitive entitlement programs will likely do little to quell the partisan debate brewing over such programs and overall government spending. This debate between Congress and the Obama administration will transition into high gear this fall as the deadline for raising the United States debt ceiling draws nearer. Another moment of crisis will be when it comes time to pass the federal budget for the next fiscal year, which begins on October 1. Both House Republicans and Senate Democrats have passed their own prototypes, but they differ greatly in their approaches to taxes and spending.
“Today’s reports make clear that while both Social Security and Medicare have sufficient resources to meet their obligations for at least the next decade, it is important that we put in place reforms to strengthen these programs,” noted the Department of the Treasury on Friday. “Fundamentally, Social Security and Medicare benefits are secure today, but reform will be needed so that they will continue to be there for current and future retirees.”
The longer expected lifespan of Medicare’s trust fund means that benefits will not have to be reduced as quickly as previously thought. However, in their annual report, the trustees who oversee Social Security said that reserves for the fund that pays disability benefits would be exhausted by 2016, and all Social Security reserves, including the fund that pays retirement benefits, would run out by 2033.
Taken from http://wallstcheatsh...on.html/?ref=YF
Edited by Kowalski, 02 June 2013 - 08:29 PM.