The US government has published a report on the funding status of social protection, according to which money is coming to an end, and 2035 will have to cut social programs. By the end of 2018, the reserves stood at $ 2.9 trillion. In addition to the reduction of reserves for the funds will hit the mass retirement of a generation of baby boomers in 30 years.
Trust Fund insurance old-age and survivors benefits (OASI) will be able to pay full benefits until 2034, the Trust Fund insurance disability (DI) will be able to pay full benefits until 2052. According to the report, the estimated exhaustion date for the combined OASI and DI funds — 2035, for a projected 75-year period, social security faces an actuarial deficit of 2.78 percent of taxable payroll or 1% of GDP.
2019 The Social Security Trustees Report is out! Check out our blog post and join us on 04/30 @ 7 PM ET as Social Security’s Chief Actuary Steve Goss discusses the Future of Social Security 2019 on Facebook Live: https://t.co/Z36rCaDGEV pic.twitter.com/cko8BLpMWQ
— Social Security (@SocialSecurity) April 22, 2019
Separately noted that the reserves in the trust Fund Medicare health insurance (HI) by the end of 2018 decreased to $ 200 billion, and HI trust Fund can pay full benefits until 2026.
Representatives of the U.S. Treasury and the funds involved in the program, made a statement that «Lawmakers should address these financial problems as soon as possible. The earlier measures will allow to consider a wider range of possible solutions and will give more time for the gradual changes that the citizens had enough time to prepare».
President Donald trump promised not to touch the popular Medicare program, however in its proposed budget for 2020 has already proposed to spend less on this program over the next 10 years. The white house argues that the reduction will not affect payments, but the savings will be achieved by eliminating fraud and changing the way Medicare pays providers, such as hospitals.
Democrats are ready to block the proposed trump budget and to prevent the reduction of Medicare. «Americans pay for these important programs throughout their working lives, and they expect that they will receive the benefits that they have earned,» ABC quotes the words of the Chairman of the relevant Committee, Democrat from Massachusetts Richard Neal. Among the options to reduce programs, increase in the payroll tax, raising the retirement age or changing the formula for determining how people receive their benefits.
The topic of Medicare was one of the Central statements of candidates in presidents from Democrats, insisting on its extension. Answering them, the press Secretary of the White house’s Sarah Sanders said: «the report also highlights the folly of proposals for significant expansion of Medicare, which means a complete takeover of healthcare by the government that will exclude the possibility of the private sector and will actually threaten the older persons’ access to health care, at the same time further straining the Federal budget.»
«Efforts must be made now and over time gradually slow the growth of health care costs in Medicare and to restore sustainable solvency in social security,» said CNN Maya Macguineas, President of the Committee for a responsible Federal budget. «But every day the problem is becoming more and the solutions will be harder to implement».
