Annual Trustees Report Says Finances Of Medicare, Social Security Worsened In Past Year

[Purveyor]

Source: ASSOCIATED PRESS

By Associated Press,

WASHINGTON — The government said Friday that a bad economy has shortened the life of the trust funds that support Social Security and Medicare, the nation’s two biggest benefit programs.

The annual checkup said that the Medicare hospital insurance fund will now be exhausted in 2024, five years earlier than last year’s estimate. The new report says that the Social Security trust fund will be exhausted in 2036, one year earlier than before.

The trustees for the trust funds said in their annual report that the worsening financial picture emphasized the need for Congress to make changes to avoid disruptive consequences in the future for millions of people who depend on health and pension benefits.

Treasury Secretary Timothy Geithner, who chairs the trustee’s panel, said the new report underscored “the need to act sooner rather than later to make reforms to our entitlement programs. ... We should not wait for the trust funds to be exhausted to make the reforms necessary to protect our current and future retirees.”

MORE...

Read more: http://www.washingtonpost.com/business/congress-puts-off-changes-to-social-security-but-long-term-financial-problems-remain/2011/05/13/AFNfQv1G_story.html

[patrice]

1. K&R

[Hissyspit]

2. "A bad economy?"

Try "tax cuts for the rich" and "trillions spent on war," too.

[Igel]

9. Since those two things don't affect FICA receipts,

but high unemployment/underemployment does--and we usually define a bad economy as a period of high unemployment and underemployment, yeah. A bad economy is to blame for the fact that the "trust funds" are predicted to not last as long as last prediction.

[Hissyspit]

11. So those things didn't affect the economy?

Your point is well-taken, but I still have a problem with the shallowness of that sentence.

[jwirr]

13. No it is the unemployment. The unemployed are not able to pay into

Social Security. Just like they are no longer paying taxes to the states and feds. When you lose that many jobs the programs those jobs support hurt.

[Hissyspit]

14. I understand that.

It's all tied together.

[Journeyman]

3. So, am I to assume they've abandoned hope that the economy will recover in the next 12 to 24 years?

So many options, so many solutions - yet some choose fear and the need for slashing cuts, instead of working to help.

[whoneedstickets]

4. Of course, this will be use as an excuse to gut the programs..

..rather than fund them appropriately by say eliminating the cap on SS taxes for high income earners.

[jtuck004]

5. "Joe Biden: We Can't Replace The 8 Million Jobs Lost"- With an attitude like that, does this

surprise anyone?

Timmy is just voicing current policy.

Too bad, since there are nearly 30 million unemployed, underemployed, and discouraged Americans who could desperately
use a jobs and education program. It would increase our security, and begin to resolve a lot of the financial issues
we are facing. Like the leadership shown in the 1930's.

Or we can just watch the 44+ million on food stamps increase, watch the most vulnerable lose their health care, homes,
heating, food, dignity and respect.

Perhaps it needs to get a lot worse before compassion motivates national policy more than greed or political contributions. Or maybe it never will again.

[JDPriestly]

6. Of course. Now, if Congress and the Republicans spent 1/4 of the `

time on creating jobs that they spend on trying to cut, complain about and ruin Medicare and Social Security, healthy seniors would be out working and paying into the system rather than taking out of it.

Stop talking about Medicare and Social Security and start talking about our trade imbalance and jobs.

[Hubert Flottz]

7. Why does Timothy Geithner hate poor America?

[sinkingfeeling]

8. I know! I know! Let's reduce the payroll deductions for both by 25%!

[rfranklin]

10. Now you're talking...

just like a Republican!

[lark]

12. Yeah, unfortunately our president caused part of this

with his deal to cut social security taxes - stupid!!