Medicare Faces Insolvency in 2026, Three Years Earlier than Last Year's Projection

Chip Somodevilla  Getty Images North America

If that doesn't sound dire enough, in their annual report, the Social Security trustees said that Medicare's hospital insurance fund will be depleted in 2026, reserves for the fund that pays disability benefits would be emptied in 2032, and all Social Security reserves would be exhausted by 2034. And the trustees now say that program is going to be insolvent in 2026 - or roughly the same time as we are from the passage of Obamacare.

"Social Security and Medicare are the federal government's two largest programs, and millions of Americans heavily rely on their benefits".

To ensure both Social Security and Medicare remain solvent for decades to come, they have three basic choices: they can raise the payroll taxes paid into the programs by both employees and employers, they can cut benefits for some or all beneficiaries, or they can do some combination of the two. And 2017's Tax Cuts and Jobs Act is making the problem worse by cutting Medicare and Social Security taxes further reducing available revenues. But, hey, they only need three-quarters of their food, home, and medical coverage, right?

The trustees report is considered an annual wake-up call for the beleaguered programs, though consensus around ways to secure their future remains elusive. General revenues will finance roughly three-quarters of SMI costs, and premiums paid by beneficiaries nearly all of the remaining quarter. But when the money is actually needed to pay for benefits, economists say a government deep in debt could be hard pressed to make good.

Both the cost-of-living increase and the Medicare outpatient premium are not officially determined until later in the year, and the initial projections can change.

Real Madrid unconcerned as star eyes summer exit
That leaves questions about Karim Benzema and Ronaldo if Perez and the new manager decide that a new front line is necessary. Marcelo was also asked about Sergio Ramos and Roberto Firmino as the fallout from the Champions League final continued.

EA Origin Access Premier subscription gets pre-launch games
But, Origin Access Premier takes it to a new level by offering all those same titles plus access to EA's newest releases. Subscribers can play over 100 PC titles whenever they like as long as a Premier member is maintained.

32-year-old Mt. Juliet man dies at Bonnaroo
With headlines like Eminem , the Killers , and Muse , Bonnaroo is a huge player in the festival circuit in the United States. Our understanding is that his vehicle was running and the heat was on, but cause of death has not been determined.

The report said the total annual cost of Social Security is projected to exceed total annual income in 2018 for the first time since Ronald Reagan's presidency, meaning the program will have to tap into reserves.

"The programs remain secure..."

"However, certain long-term issues persist", the statement added.

Despite looming shortfalls, U.S. Treasury Secretary Steven Mnuchin said accelerated economic growth under the current administration would help to bolster both programs' coffers in the coming years. That reflects a.06 percentage point worsening due to extending the projection period and valuation date by one year, and a.04 percentage point improvement due to new data and improved projection methods, the report said.

Social Security recipients are likely to see a cost-of-living increase of about 2.4 percent next year, said government number-crunchers who produced the report.

Related News:

  • Blue Jays lose 7-2 to Yankees

    Blue Jays lose 7-2 to Yankees

    They flexed that game into primetime, which was meant with disappointment from the Yankees. "They're gonna hit. That start was in 2011, when Garcia allowed 10 hits and five earned runs in 5 1/3 innings.
    Voter turnout could reach 45 percent in Sacramento County

    Voter turnout could reach 45 percent in Sacramento County

    While this is the first election using this vote center model, Jarboe says it won't be the last in Sacramento County. Absentee ballot application forms are available at the County Election Board office, 131 W. 13th St.in Ada.
    Trump wants Russian Federation  to rejoin G-7

    Trump wants Russian Federation to rejoin G-7

    A quick prompt from Canadian Prime Minister Justin Trudeau produced an all-smiles photo of the G-7 leaders on Friday. In the days leading up to the summit, he's fumed about his fellow G7 leaders, and in some cases they've bitten back.
  • The infamous Donald Trump and Kim Jong-un impersonators return

    The infamous Donald Trump and Kim Jong-un impersonators return

    The Iran nuclear deal, on the other hand, was an executive agreement negotiated under the Obama administration. On Tuesday, the world's attention will be fixed on the historic meeting between Donald Trump and Kim Jong-un.
    ABC apologises for Priyanka Chopra drama Quantico episode involving Indian terrorists

    ABC apologises for Priyanka Chopra drama Quantico episode involving Indian terrorists

    Now into its third season, the 35-year-old actress made her US television debut in " Quantico " which first premiered in 2015. ABC, in its statement, said Chopra has no involvement in the storylines depicted in the series.
    With Meghan Markle’s first balcony appearance, her new royal life truly begins

    With Meghan Markle’s first balcony appearance, her new royal life truly begins

    The Duke and Duchess of Sussex followed suit by horse and carriage together with the Duke of Kent. Prince Philip , who retired from royal duties past year , did not attend the military parade.
  • Eunice Gayson, the first Bond Girl, has died aged 90

    Eunice Gayson, the first Bond Girl, has died aged 90

    Producers of the James Bond series Michael G Wilson and Barbara Broccoli also released a statement on the star's passing. She was "an unbelievable lady who left a lasting impression on everyone she met", her feed says. "Sylvia Trench.
    Merkel sees difficult G-7, will seek talks with Trump

    Merkel sees difficult G-7, will seek talks with Trump

    She said that would "greatly strengthen the consistency and coherence of our foreign policy". President Donald Trump's decision to impose steep tariffs on steel and aluminum imports.
    Roman Abramovich rejects approach to sell Chelsea to Jim Ratcliffe

    Roman Abramovich rejects approach to sell Chelsea to Jim Ratcliffe

    Indeed, sources claim Ratcliffe's is among a number of approaches that have been rejected, including from China. Chelsea owner Roman Abramovich has reportedly turned down the opportunity to sell the Premier League club.
  • MIT built a psychopathic AI

    MIT built a psychopathic AI

    The goal of Norman AI is to demonstrate that artificial intelligence can not be unfair and biased unless such data is fed into it. Amid such concerns comes Norman AI, developed by Massachusetts Institute of Technology ( MIT ) and described as " psychopath ".
    EA Shows off Battlefield V: Will Bring Battle Royale To WW II

    EA Shows off Battlefield V: Will Bring Battle Royale To WW II

    In Anthem , you play a freelancer, which you can customize in one of four classes. "It's what we call "our world, my story". Whether plunder, revenge, or glory lures you onward, your choices will irrevocably change you - and the world around you.
    Amazon launches 4K Fire TV Cube with integrated Alexa Echo

    Amazon launches 4K Fire TV Cube with integrated Alexa Echo

    Amazon said that the entire user experience of the Fire TV Cube has been designed keeping the "voice first" philosophy in mind. The device connects to users' TVs and provides access to a suite of apps like Amazon Prime services, Netflix, Hulu, and more.


Most liked

Philadelphia 76ers: Wentz and Ertz attempt to lure LeBron James to Philly
How much stomach does he have left for such stretching? Wentz is apparently James' favorite football player after all. Excluding Houston's other free agents, re-signing just Paul and Capela easily puts Houston over the cap.

Lyon pull plug on Fekir's Liverpool switch
Liverpool have been strongly linked with a move for Lyon attacking midfielder Nabil Fekir in the summer transfer window. Liverpool FC are closing in on a deal to sign Nabil Fekir from Lyon , according to reports in the British media.

Southern Illinois Man Hopes to Win Triple Crown with Justify
The toughest competition Justify could face is Bravazo who finished half-a-length behind the victor at the Preakness Stakes . Justify has already clinched victories in the Kentucky Derby and Preakness Stakes, the first two races in the Triple Crown.

Colby Covington gives Joe Rogan "a pass", won’t slap him in Chicago
McGregor has not fought for UFC since November 2016, although he lost to Floyd Mayweather Jr.in a boxing match in August 2017. McGregor hasn't fought an MMA bout since winning the UFC lightweight belt from Eddie Alvarez at UFC 205.

Florida Failed on Background Checks for an Entire Year
Of those, Putnam's office conducted a further review on 365 applicants and then revoked 291 of their concealed carry permits. But, the Department claimed that it had properly handled their employee's malfeasance upon learning of his failure.

EA announces Sea of Solitude
It's unclear if the game will be feature open world aspects, or how much of a horror aspect could come into play. The game's main theme is loneliness and how it affects people.

Warriors star Steph Curry makes LeBron James Cavs claim before Game 1
With the NBA Finals upon us it's only natural to break down the fourth straight matchup between the Cavaliers and Warriors . And I dealt with that last night, ” he said. "I'm just so happy I get to play again in the Finals", Durant said.

Canada to Trump: no deal on NAFTA unless US tariffs are lifted
Investors are also concerned about the future of the North American Free Trade Agreement, which Trump has threatened to terminate. He engaged in a bitter war-of-words with Trudeau and French President Emmanuel Macron on Thursday, a day before the summit began.

LeBron James next team: Most likely destinations for Cleveland Cavaliers star revealed
That series, one the Warriors led 3-1, changed when they couldn't finish the job while being presented with serious adversity. Kevin Love recalled Cleveland's Game 4 effort previous year with backs to the wall.

Roberto Firmino urges Alisson to join Liverpool
Roberto Firmino has revealed that he has asked Roma goalkeeper and fellow Brazil global Alisson Becker to join Liverpool .

Respawn’s Star Wars game titled Jedi: Fallen Order with 2019 release date
The story synopsis sounds fittingly bleak, for a game from the ex-Infinity War devs who gave us that Call of Duty 4 nuke moment. Star Wars is a hot property and EA will want to keep the hype surrounding it alive.

South Africa comeback sinks England in thriller
Kiwi-born flanker, Hurricanes captain Brad Shields, endured a rough start to his worldwide career for England . Eddie Jones' side looked good for the first 20 minutes and the last 10, but lost its way badly in the middle.

Afghan Taliban calls for ceasefire during Eid
He added that eight Taliban attackers were killed and more than a dozen others were wounded during the gun battle. In the meantime, Taliban insurgents have continued to carry out attacks against Afghan forces .

FP3: A Montreal hat-trick for Verstappen
But although there were a number of wobbles from drivers , only the two Williams drivers actually hit the wall. First and foremost, the headline lap times of both Hamilton and team-mate Valtteri Bottas were misleading.

Golovkin outraged as he is stripped of IBF middleweight title
The sanctioning body ruled out to strip Golovkin of the IBF belt for his failure to fight Derevyanchenko until August 3.