Countless seniors are depending on what they recoup from Medicare and Social Security to be able to retire. On the other hand, the needs of the elderly population combined with skepticism towards today’s economy result in a reform that isn’t as helpful to senior citizens as the present government has stated.
The money being used to fund these programs, such as funds from payroll taxes, cannot support the current need for these. The Office of the Actuary within the Health and Human Service Department has processed relevant data, and recognized that the projected dozen years of further solvency concerning Medicare is mostly a pretense. The assessment also reports that it can’t finance other federal projects at the same time, which include insurance policy extension and the expansion of trust funds.
From a related statement, a portion of the approximated $575-billion Medicare cost savings over a decade is now improbable because the future Congress is likely to pressure medical providers to cut rollbacks. The office also anticipates the speedy decline of personal insurance policy purchases via Medicare due to cutbacks associated to the healthcare law.
Social Security is also going downhill, with trustees forecasting fund depletion in less than thirty years, unless drastic changes are made by the legislature. The marketplace has also exerted substantial pressure on the program’s funds, especially with the increase of early retirees and the drop in payroll taxes.
Regardless of the $2.5 trillion surplus in Social Security funds, the program has been under further financial stress because of money the government borrowed to fund other programs.
Although the president has put together a commission dedicated to building up federal government resources, the two programs are still far from being able to provide for the needs of many retirees. Groups of the elderly are against the cuts in Social Security and Medicare benefits and conservatives vow to fight against increases in tax, resulting in an environment that makes the distribution of better benefits to the retired even more difficult.
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