July 20, 2018

Medicare to run out of money sooner than expected

10 June 2018, 08:27 | Silvia Roy

Government Medicare will become insolvent in 2026 Social Security to follow in 2034

Government Medicare will become insolvent in 2026 Social Security to follow in 2034

According to the annual Social Security Board of Trustees report, the year when the combined trust fund reserves are projected to become depleted (if Congress does not act before then, they optimistically remind us), is 2034 - the same as projected last year. Income to the Medicare fund is expected to be lower than estimated previous year because of "lower payroll taxes attributable to lowered wages in 2017 and lower levels of projected gross domestic product", the Treasury said in a "fact sheet" accompanying the report.

The annual report by trustees of the giant fund also covers Social Security, which millions of older Americans depend on for income, just as it does for many disabled.

In another calculation, the trustees estimated the 75-year actuarial deficit for the combined trust funds at 2.84 percent of taxable payroll, up slightly from the 2.83 percent of taxable payroll estimated in last year's report.

Of the two programs, Medicare faces the greatest fiscal challenges as medical costs increase and the United States ages, with many baby boomers set to retire in the next several years.

Kevin Love of Cleveland Cavaliers out of concussion protocol, available to play
The Cavs, ranked 29th in defense all season, are allowing 99.9 ppg in the playoffs - second-lowest among all 16 postseason teams. But the Cavs, while weaker as a unit, boast the league's best player in James - who has been on fire throughout the post-season.

The Centers for Medicare and Medicaid Services (CMS), however, said President Trump's fiscal 2019 budget would strengthen "would strengthen the fiscal integrity of the Medicare program".

The report did not change its insolvency date for Social Security, projecting it has enough funding until 2034.

"As in past years, the Trustees have determined that the fund is not adequately financed over the next 10 years", the report said.

"Our estimate could change, because we still have several months of CPI data to go before the COLA is announced in October", Mary Johnson, The Senior Citizens League's Social Security policy analyst, said in a statement. But the fund that helps tens of millions of retirees is expected to be depleted a year earlier than projected a year ago, while the outlook for the disability trust fund is more favorable.

What happened in Real Madrid's meeting with Cristiano Ronaldo's team this week
We started talking about football and I saw a smile on his face and that is what I want to see. And he also expressed a belief that his arrival does not hinge on Cristiano Ronaldo's future.

"The administration's economic agenda - tax cuts, regulatory reform, and improved trade agreements - will generate the long-term growth needed to help secure these programs and lead them to a more stable path", Mnuchin said in a statement.

A major reason for Social Security's long-term financial problems is a decline in the number of workers for each beneficiary. It has added 7 million people since 2013. About a quarter of Part B costs are paid for by beneficiary premiums with the rest from the federal budget.

Medicare costs will rise from last year's 3.7 percent of GDP to 5.8 percent by 2038.

Information for this article was contributed by Robert Pear of The New York Times, and by Ricardo Alonso-Zaldivar and Andrew Taylor of The Associated Press.

Elections Ontario warns Ottawa voters to double-check polling place
If you missed the deadline to register to vote, thanks to a new law, you can still do so at the Registrar of Voters in person. Des Rosiers's campaign staff said they believe the number of voters who received the incorrect mailer was "pretty minimal".

Other News

Trending Now

Toll in Guatemala volcano eruption reaches 99
The US government expressed its "deepest condolences" to the victims and said it was sending emergency aid at Guatemala's request. Another Los Lotes resident who survived the volcano, Alonso Castillo, estimated that more than 400 people lived in the town.

Oil gains on Venezuela export cuts, OPEC production levels
OPEC is in its second year of an effort to erase a surplus in global crude oil inventories through coordinated production cuts. Falling production from Venezuela has contributed to a rally in global oil price Brent to almost $80 a barrel.

Taliban Announce Cease-fire Over Eid Holiday for 1st Time
Provincial police spokesman Enhamuddin Rahmani confirmed the death toll and said eight Taliban fighters were also killed. The Taliban's favorable response comes after President Ashraf Ghani on Thursday announced a ceasefire with the Taliban.

Yankees' Boone 'grateful' for time change of July 8 game
Toronto , which snapped a five-game losing streak Sunday, has not won back-to-back games since April 30 and May 1 at Minnesota. The Orioles defeated the New York Mets 1-0 at Citi Field, while the Blue Jays lost 3-0 to the New York Yankees in Toronto .

Germany's Merkel sees tough G7 talks, warns on trade issues
German Chancellor Angela Merkel attends a session at the lower house of parliament Bundestag in Berlin, Germany June 6, 2018. The parliament's question and answer format will see Merkel address lawmakers in one-hour sessions three times a year.

Pulev fumes at Whyte, Hearn after fight falls through
I'm sure he believes different, I'm sure they have seen something in me that they think they can beat. Hearn, who is also Joshua's promoter, said that a Whyte-Parker fight was the most intriguing option.

Respawn's Star Wars Game Confirmed as 'Jedi Fallen Order'
Dan Casey is the senior editor of Nerdist and the author of books about Star Wars and the Avengers . That's the word from EA Play, Electronic Arts' E3 2018 press conference happening in LA right now.

Trooping the Colour: Queen Elizabeth celebrates 92nd birthday
Meghan made her debut on the Buckingham Palace balcony alongside Harry and the other family members and seemed totally at ease. Prince Philip , the Duke of Edinburgh, did not take part today, in line with his retirement from public life past year .

Verstappen fastest in practice for Sunday's Montreal Grand Prix
We have a great vehicle but our whole package is not the best on every single track and we just have to accept that". He hopes to finish in the top five to earn enough points for his F1 superlicence.

Trump delivers warning on trade as he leaves G-7 summit
Trump said he was discussing two types of sunset provisions in which any of the countries could leave the deal. At issue now is whether the seven nations can conclude their meeting with a joint statement of priorities.