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Social Security And Medicare Going Broke

From a suddenly concerned Washington Post:

Alarm Sounded On Social Security

Report Also Warns Of Medicare Collapse

By Amy Goldstein
Wednesday, May 13, 2009

The financial health of the Social Security system has eroded more sharply in the past year than at any time since the mid-1990s, according to a government forecast that ratchets up pressure on the Obama administration and Congress to stabilize the retirement system that keeps many older Americans out of poverty.

The report, issued yesterday by the trustees who monitor the government’s two main forms of help for the elderly, shows that Medicare has become more fragile as well and is at greater risk than Social Security of imminent fiscal collapse. Starting eight years from now, the report says, the health insurance program will be unable to pay all its hospital bills

In announcing the results of the trustees’ annual forecast with other Cabinet members, Treasury Secretary Timothy F. Geithner said, "The president explicitly rejects the notion that Social Security is untouchable politically." …

Specifically, the trustees’ report predicts that the trust fund from which Social Security payments are made will be unable to pay retirees full benefits by 2037, four years earlier than forecast a year ago. In particular, the trustees single out the financial weakness of the part of the program that subsidizes disabled Americans, saying that fund will run out of money in 2020.

Only three times in the past 15 years have the trustees predicted that Social Security would run out of money sooner than previously expected. Last year, they forecast no change from the 2007 prediction, and in 2007, they predicted that the fund would last a year longer than they had previously thought.

Yesterday’s report also said the Social Security trust fund will begin to spend more money than it takes in through tax revenue in 2016, one year sooner than predicted a year ago.

Administration officials said that if Congress were to act immediately, the impending gap could be filled three ways: by raising workers’ Social Security payroll taxes by 2 percentage points, from 12.4 percent to 14.4 percent; by reducing benefits by 13 percent; or a combination of the two approaches. The officials briefed reporters on the condition of anonymity on the technical aspects of the trustees’ findings.

Medicare’s financial health, the report shows, deteriorated less sharply in the past year than Social Security’s, but it remains the more urgent problem. The trust fund that pays for hospital care under Medicare is now predicted to run out of money in 2017, two years earlier than forecast a year ago

Of course conservatives and other Republicans have been warning about this for years.

However, their efforts at reform have all been stymied at every tern by the Democrats and their lackeys in our one party media.

But have no fear. This will all be blamed on the GOP.

And this will make the (also Democrat-caused) ‘financial crisis’ look like a walk in the park.

This article was posted by Steve on Wednesday, May 13th, 2009. Comments are currently closed.

17 Responses to “Social Security And Medicare Going Broke”

  1. bill says:

    Commie health care is the answer, ration and let die.

    • jobeth says:

      That’s exactly what happened to my father-in-law in Britain. Just what we need….Nationalized heath care. NOT!

  2. How about they take all the money they “accidentally” sent to dead people and put into social security.

  3. proreason says:

    Gee, I’m not a genius, but:

    – Could FICA receipts decline when unemployment goes up?
    – Could FICA receipts decline when millions of “visiting” workers get paid under the table?
    – Could FICA receipts decline when an underground economy is allowed to thrive to enhance “social justice”?
    – Could FICA payouts rise when people of color scam the SSI/disabilty system with impunity?

    And I’m agast that somehow people are collecting Social Security much longer than they were 60, 50, 40, 30, 20, and 10 years ago. Since we have a medical system in crisis, I just can’t figure out how that could possibly happen.

    So I’m just not smart enough to understand the underlying problems.

    Thank God we have the smartest man in the world running the country to solve this problem.

    • heykev says:

      I too am glad our Dear Leader has a solution to this and every problem that that evil Bush created. Soon Dear Leader will begin taxing those bad rich folks more and more and then tax big corporations more because they are making obscene profits.

      Our Dear Leader believe this is the solution for all that ails US, especially when he combines with his beneficent big government programs. We don’t have to worry, Dear Leader will take care of us.

    • electionhangovervictim says:

      proreason, I think I have a crush on you. Won’t you consider running for office??

    • proreason says:

      Alas hangover, I’m a one woman kind of man, and currently I’m exchanging hot emails with sending hot emails to Angelina, Uma, and Carrie.

  4. catie says:

    Gee 30 years ago when I started my first job “on the books” at Sauzer’s Kiddie Land and saw how much came out in taxes I cried that it left me at 15 with very little check. The following year when I turned 16 and got a job at Strack’s I had to join the grocery store union and again there were those dreaded taxes. But I pretty much assumed that by the time I grew up and worked there wouldn’t be any left for me when I retired. Next up they’ll say that perhaps after age 85 or so you should no longer received medicare or social security. I can see it coming.

  5. GL0120 says:

    You’re all overlooking something that makes the shortfall irrelevant – Obama’s Health Care.
    Once in place, we’ll all live longer and be healthier; therefore we won’t need to retire at 65, we’ll be able to work well into our 80’s.
    This means that more money will be going into the plan so that when we do retire at 85 or so, there will be plenty of money to support us.
    No dissent please, (dissent, along with logic, simply will not be tolerated), after all since our Dear Leader is capable of fixing the financial, housing, and auto maker crises with a wave of his hand, fixing Social Security and Medicare will be child’s play for him.

    • texaspsue says:

      Yeah and “the Won’s” health care plan will make the Doctors go broke.

      According to a couple of doctors that I know of, the Obama Administration is sending out Reps. to talk up lowering the fees for their services. They want the doctors to charge less for ALL office visits, procedures, etc. (Not just for Medicare, but for all patients.) The doctors are diehard Liberals and are POed! They feel betrayed.

      Don’t believe me? Ask any doctor that you know if they have been to the steak lunch for the big “talk” about future of health care. It’s unbelievable! They want the doctors to take a cut in pay to promote the Obama agenda. We all know where that level of health care will lead.

      Heck of a health plan, huh?

    • proreason says:

      “They want the doctors to take a cut in pay to promote the Obama agenda”

      More than 50% of the doctors in England are from the Middle East (including Pakistan). Not India….the Middle East. England’s medical care is in the hands of Muslims.

      Coming soon to a town near you.

    • jobeth says:

      Yep, and if anyone does not follow the “Won’s” plan for utopia by actually getting sick, they can be “dealt with” by health care rationing and be “allowed” to die. How wonderful it will be when everyone agrees with the dear leader! (….gag….Did I just say that last sentence?)

    • heykev says:

      “England’s medical care is in the hands of Muslims.Coming soon to a town near you.”

      Pro ~ It’s already happening. I had to move a few times in the past 10 years and find it increasingly difficult to get a physician who was born in the USA. We educate many of these folks from overseas because they pay CASH and then do not leave once graduated.

      I would prefer only letting only US citizens utilize our government subsided medical schools. Guess I will have to add that to the list of the many things I plan to do once I become Mostly Benevolent Dictator. :)

    • jobeth says:

      heykev. I don’t know how many people will go into med school now that they will not be allowed to make enough money to even repay their student loans.

      Obalmy is coming down hard on health care doctors/hospitals etc to limit and have a cap on what they can charge.

      It gets me how some out there are so afraid that a doctor will “get rich” off their skill.
      I wonder if these people ever think about how much pressure the medical care givers are under…especially doctors. Think of the years involved just to get through school and the years in residence. Not to mention all the time involved in manditory continuing ed units just to keep up with new developments in medicine in order to keep their licenses.

      These same people don’t think twice in spending tons of $$ on recreation toys like boats etc and trips. But they gripe about spending on their own health care.

      Most health care givers are deserving of the pay they get. Not all, But most. This plan will drive all by the worst out of health care. There is far too much stress and responsibility involved in medicine to risk all and work so hard and not get compensated.

      Once again, just like with the military, Obalmy is trying to distroy medicine.

  6. proreason says:

    GL: your tongue may be in your cheek, but I expect to hear that your assumption is a big part of The Moron’s “final solution” to social security / Medicare.

    It will be a bit like his projection for astronomical growth in the economy as long as he is in power, even though the private sector will be rendered comotose, and the engine of growth will be Acorn, alegal non-residents, and the energetic denizens of Rev Wright’s church.

    Now, Rush talked about this yesterday, and he is a wee bit skeptical that Americans are going to exercise their way to 100 year lifespans, but after all, he “lost”, so what can a guy like that know. I expect all Obamabots will be exercising daily, feasting on arugula and soybeans, not smoking anything but Obama speeches, only drinking Fuji water, getting plenty of sleep, monitoring their chemical intakes, walking to work, and managing their anger within a few weeks this moment.

    Won’t it be great?

  7. Liberals Demise says:

    When will these SCREWED UP politicians stop and see what the real things they are allowing to happen is the problem with our system :
    First and foremost is giving ILLEGALS (aliens have better health care on their own planets) SS benefits they never earned and medicare / food stamps they don’t deserve!!
    I am sick up and fed of paying for some deadbeat because Washington says I have to!! This may be the shot heard coast to coast that sends us into a tailspin!! (not forgetting Health Bear)

  8. canary says:

    Few weeks ago, Obama talked of raising the retirement age. In Abonimaticity, when Bush suggested SS reform, Obombi took it really hard. His ideas are 1)the government stepping in to make 401(k) more available, 2) Clinton era idea of creation of a universal 401 (K) where the government matches contribiutions into 401(k), ending in….

    “As a complement to Social Security, we should take the best and most affordable of these ideas and begin moving toward a beefed-up, universally available pension sytem that not only promotes savings but gives all Americans a bigger stake in the fruits of globalization.” (183)

    But, he makes it clear the health issue is priority at this point.

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