A change of direction is needed to ensure the future of the social safety net of the United States

Spread the love

A change of direction is needed to ensure the future of the social safety net of the United States

If nothing changes, the Medicare program will not will be able to pay only 89% of benefits due in 2031.

The Future of US Welfare Programs and health insurance will be compromised in a decade if nothing is done now to secure their long-term funding, trustees warn.

Welfare and Medicare, two social programs relied upon by millions of Americans, could run out of payment within a decade, according to the annual report from Social Security and Medicare administrators. health insurance released on Friday.

According to actuarial forecasts presented, health insurance, known in the United States as Medicare and which covers more than 65 million elderly and disabled , will no longer be able to pay for hospital visits and nursing home stays for all of these people by 2031.

If nothing is done, Medicare will only be able to pay 89% of the benefits due in 2031.

In 2033, it will be the turn of the social assistance program to no longer be able to pay the full benefits to the 66 million pensioners who receive them today in the world. country. It is projected that only 77% of beneficiaries will be paid in 2033.

In the United States, elderly or disabled people who cannot afford private insurance can benefit, as a last resort, from the health insurance program (Medicare).

The document presented by the administrators of these two plans urges the government to take action to ensure the sustainability of these social safety nets, the costs of which continue to increase, as more and more aging Americans become eligible for them. /p>

Trustees again urge Congress to address projected trust fund deficits in order to phase in necessary changes [to its funding], Kilolo said Kijakazi, Acting Social Security Commissioner.

Earlier forecasts had Medicare set to default starting in 2028. But according to new projections released Friday by its administrators, the program could continue to pay benefits for three more years.

On the other hand, the date on which the social assistance program must run out has been moved up by one year.

“If lawmakers do nothing, in less than 10 years more than 70 million recipients will face an average cut of 23% in their benefits. »

— Michael Peterson, CEO of the Peterson Foundation

The Social Security Disability Fund, for its part, is doing better. It is not expected to run out over the next 75 years, actuaries predict.

The future of Medicare and welfare has become a hot political issue in the United States , especially as Democratic President Joe Biden prepares to campaign for re-election in 2024.

President Joe Biden's administration wants to raise taxes on the wealthiest Americans to secure long-term funding for the Welfare and Medicare.

Joe Biden has already pledged to rebuff any attempts by Republicans to cut Medicare funding or benefits in order to balance public finances.

Instead From this, the President is proposing to raise taxes on Americans earning more than $400,000 a year to shore up funding for these important social safety nets.

Republican leaders, meanwhile, say they also have no plans to cut benefits, but they haven't yet rallied around a plan to keep the programs solvent. .

Last year, however, members of the House Republican Review Committee proposed raising the age at which a person can apply for social assistance and health insurance.

“The sooner we act, the easier it will be to #x27;Securing the Future of Welfare. »

— Michael Peterson, CEO of the Peterson Foundation

Legislators should be on top of things, and the good news is that there are plenty of x27;reasonable options, both on the revenue and expenditure side, to implement fair, incremental and common-sense reforms, Mr. Peterson believes.

For years For years, American politicians have deferred questions about the funding of Social Security and Medicare to the next generation. Social Security benefits were last reformed some 40 years ago.

Future of funds should be top priority for Congress leaders, says Jo Ann Jenkins , from AARP. Both programs face long-term funding needs, and Congress must act to ensure that Social Security and Medicare are there for the next generation.

With information from The Associated Press

Previous Article
Next Article