The latest report on Medicare and Social Security isn’t good.
In fact, the trustees of the programs found that both are in a dire situation if substantial reforms are not made. Here are the three main takeaways from Monday’s Trustees Report:
Social Security will be insolvent by 2035. Trustees said that at the current pace, the program will only have enough money to cover 80% of what it is supposed to cover. If reforms aren’t made, this could lead to mandatory cuts to the program of 20%!
Medicare will become insolvent even earlier than Social Security. The report says that unless serious reforms are made, Medicare will be out of money by 2026, which could mean medical service providers will only be paid a portion of what they are rightfully due.
It’s time for Washington to act. As the reports show, if Congress doesn’t act soon, these programs will not be able to cover their respective obligations. Unfortunately, these reports – and the warnings they contain – will end up gathering dust on shelves all over Washington. Meanwhile, the fiscal apocalypse gets nearer and nearer.
It’s time to reform these programs before it’s too late!