Social Security and Medicare are running out of money quicker than expected, according to the latest data from the Treasury Department…(Treasury)
- The Old-Age and Survivors trust fund is now able to pay scheduled benefits until 2033. This is one year earlier than the 2020 report projected.
- The Disability Insurance fund is estimated to be adequately funded through 2057. This is eight years earlier than the 2020 report projected.
Medicare’s funding apparatus may be different than social security, but the program is not on any better financial footing…
- Medicare Part A‘s good news is it saw no deterioration on its current path to insolvency. The bad news is that means it runs ut of money in 2026
- Medicare Part B is actually funded indefinitely because it’s financed from general revenues and beneficiary premiums each year to meet the next year’s expected costs.
NOTE: The Treasury report finds that the Medicare Part B’s “funding provisions and the rapid growth of its costs, SMI will place steadily increasing demands on both taxpayers and beneficiaries.”