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The PJ Tatler

by
Matt Vespa

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May 31, 2013 - 7:27 pm

Social Security will be unable to give full benefits to retirees by 2033, and that’s not all.  Medicare is expected to be insolvent by 2026. Thus, the end of the social safety net. The Hill reported that:

Unless Congress acts, Social Security will no longer be able to pay full benefits to retirees after 2033. Only three-quarters of benefits will be delivered after the projected insolvency date.

The trust fund that pays disability benefits through Social Security is headed for insolvency in 2016 and will only be able to pay out 80 percent of benefits after that date, the trustees found.

Medicare’s trust fund will become insolvent in 2026 — two years later than previously estimated. By that date, the fund that covers Medicare’s hospital benefit will begin to spend more money than it takes in.

The additional two years of Medicare solvency projected this year were due to lower-than-expected spending. The insolvency date for Social Security is unchanged from last year.

[...]

House Budget Committee Chairman Paul Ryan’s (R-Wis.) office said the report means action needs to be taken immediately to fix the entitlement programs.

“Today’s report is yet another reminder that Medicare and Social Security are in great danger. We need to protect and strengthen these critical programs. And we must take action now, so we can keep our promises to current seniors and future retirees,” Ryan spokesman William Allison said Friday.

The trustees report was signed by Health and Human Services Secretary Kathleen Sebelius, Acting Labor Secretary Seth Harris, Acting Social Security Commissioner Carolyn Colvin, Treasury Secretary Jack Law and public trustees Charles Blahous and Robert Reischauer.

The trustees had previously said that President Obama’s healthcare law extended the life of the Medicare trust fund — a finding that Lew and Sebelius were quick to highlight on Friday. 

So, while liberals pat themselves on the back for extending the life of Medicare, it’s still going to be insolvent,unless further reforms are made.  Conservatives – and some fiscally hawkish Democrats– have known this for years, but for a president that has only spent 3.6% of his time focusing on the economy – we shouldn’t expect much over the next three years.  Obama has some scandals to deal to resolve.

 

Matt Vespa is a conservative blogger who contributes to CNS News, RedState, Noodle Pundit, and was formerly with Hot Air's GreenRoom.

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WaPo headline from the other day implies there is "good news" on Medicare because it got what amounts to a 2-year reprieve on insolvency. That's like saying that your eviction has been postponed a couple of days due to rain.

The MSM continues to give us reasons to show it little simpathy despite its recent tiffs with the Obama administration.
46 weeks ago
46 weeks ago Link To Comment
For all practical purposes, both funds are "insolvent" now. The "trust funds" have nothing in them but markers that must be made good by income taxpayers.
46 weeks ago
46 weeks ago Link To Comment


geokstr • an hour ago −








This is a joke. Social Security is broke already.

There is nothing in the fake "lockbox" but Treasury Securities, which are IOU's to ourselves from ourselves, paid for with worthless "money" printed up by the Fed as needed to fund the deficit. The whole thing is an just an accounting trick by the federal government to make it look like there are "investments" in some "fund" that is set aside just for us when we retire. As a CPA with 30 years of experience, I can tell you this with certainty - if any corporation's retirement plan were run like this, the Board and senior management would all be serving lengthy prison sentences for fraud.

All Social Security payouts are just passthroughs of current taxes and borrowing. The fund started paying out more than it takes in several years ago. That was the point it went bankrupt, not some mythical date 20 years from now.

It could have still been solvent, because for 80 years it was a cash cow, with contributions far exceeding outlays. However, beginning in the 1960's, Congress began taking every cent of that cash to fund general expenditures, and has been stealing the surpluses ever since.

As he does with everything, Obama made it much worse by radically easing the requirements to qualify for SSDI, the disability portion of the program. It used to be tough to qualify, with lots of evidence required of real conditions that prevented working. In the last 4 years, millions began to be allowed to qualify for things like depression, nebulous unverifiable "back pain" and fake diseases like ADD and ADHD.

The unemployment numbers would be much worse if these people had not been allowed to claim benefits, since they no longer show up in the statistics as "unemployed".

Even a liberal program like "60 Minutes" estimated that there is 20% fraud, abuse and waste in Medicare, over $70 billion EVERY YEAR. There is no reason to assume Medicaid is any better.

The new "amnesty" bill will make matters much, much worse in all these programs in the near future as well. I doubt that factor is even taken into account in these rosy projections.
46 weeks ago
46 weeks ago Link To Comment
Author's Note: Last sentence should be "Obama has some scandals to resolve." My apologies.
46 weeks ago
46 weeks ago Link To Comment
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