“Social Security and Medicare finances bolstered by growing economy,” (axios.com), Neil Irwin.
Two different pieces of information going on here. The pie chart below shows were we were in 2021 for Medicare. I have not compared the pieces of information to see if they conflict.
I do not have charts for Social Security, I can only imagine in my head the outcome. A million people died so the funds go to the living. The trustees of the programs released their annual report on their financial stability Thursday. They projected it will take longer for the trust funds supporting the programs to run out of money than previously estimated.
Social Security: The trust fund for Social Security’s retirement and survivor benefits is projected to run out of money in 2034 or one year later than cited before. If we believe in MMT (you remember Dale), no problem. Right?
- Once out of money, tax revenue the government collects would support 77% of Social Security benefits. Congress would face the choice of cutting benefits, raising taxes or both. Cut benefits and see how long they last.
- Social Security disability insurance, the trust fund, is now projected to remain solvent for the next 75 years, not to run out of money in 2057. One issue out of the way.
Medicare Part A pays for older Americans’ hospital coverage, is on track to empty its trust fund in 2028, two years later than previously projected. Tax revenues would pay for 90% of benefits owed.
- Deaths from COVID reduced Medicare costs by 2.9% in 2021. Those who died of the disease previously had, on average, higher ongoing medical costs than those who survived the pandemic.
What is true also? The Economic recovery from the 2020 recession has been stronger and faster than assumed in last year’s reports. The fast recovery has had positive effects on the projected actuarial status of the trust funds in these reports,
You can read this in the brief reports above.