Alarm Sounded On Medicare, Social Security

Payouts For Medicare Projected To Exceed Collections This Year; Social Security Gets 2017 Threshold

(AP)  Trustees for the government's two biggest benefit programs warned Tuesday that Social Security, the U.S. state pension system, and Medicare are facing "enormous challenges," with the threat to Medicare's solvency far more severe.

The trustees, issuing a once-a-year analysis of the government's two biggest benefit programs, said the resources in the Social Security trust fund will be depleted by 2041. The reserves in the Medicare trust fund that pays hospital benefits were projected to be wiped out by 2019.

Both those dates were the same as in last year's report. But the trustees warned that financial pressures will begin much sooner when the programs begin paying out more in benefits each year than they collect in payroll taxes. For Medicare, the federal health care insurance program for people aged 65 and over, that threshold is projected to be reached this year and for Social Security it is projected to occur in 2017.

The first year that payments will exceed income for Social Security will occur in 2017, just nine years from now, reflecting growing demands from the retirement of 78 million baby boomers. Medicare is projected to pay out more than it receives in income starting this year.

"The financial difficulties facing Social Security and Medicare pose enormous challenges," the trustees said in their report. "The sooner these challenges are addressed, the more varied and less disruptive their solutions can be."

Treasury Secretary Henry Paulson, one of the trustees, warned that the U.S. was facing a fiscal train wreck unless something is done.

"Without change, rising costs will drive government spending to unprecedented levels, consume nearly all projected federal revenues and threaten America's future prosperity," Paulson said in releasing the new report. "Our nation needs a bipartisan effort to strengthen both programs for future retirees."

President George W. Bush, who wanted to make overhauling Social Security his top domestic priority in his second term, tapped Paulson to lead that effort. However, Paulson has been unable to forge a consensus with Democrats, who took control of Congress in 2006.

Democrats contend that Bush lost valuable time after his 2004 re-election pushing a plan to allow younger workers to direct their payroll tax contributions into private accounts, an idea that went nowhere in Congress.

While the Social Security trust fund will have resources until 2041, the more critical date in terms of government revenues will occur in 2017. That is the date that Social Security will have to pay out more in benefits than it collects in payroll taxes. At present, Social Security is running large surpluses that are going to fund the rest of government.

However, in 2017, the situation will be reversed and the government will have to start filling the gap between what Social Security will be collecting in payroll taxes and what it must pay out. Technically, it will do that by redeeming the non-marketable Treasury securities that are held in the trust fund. However, those bonds are simply government IOUs.

To get the money to pay the benefits, the government will have to borrow or close the gap in other ways such as cutting benefits or raising taxes.

[fstop100]

Looks like someone isn''r doing his job.

[rudy654-2009]

And this despite the fact that millions of illegals pay into it and will never see a penny of it. So what happens to all of it?

[tomanyt]

How funny. The government can''t handle Medicare or Social Security, yet some people want the government to provide us with health insurance.

[mudrose-2009]

Yes let''s have government handle our healthcare insurance. They could also dip into that and then have complete control over who will live and die.

[au_fait]

Not doing hsi job, fstop100, you have to be kidding me. How about cutting free medical care, food stamps, disability to those who are able. It is about time people take responsibility for their lives and learn to work. Also we should stop giving handouts to every county and reduce the spending in Iraq! We are not the world''s police and so we should not try to help everyone! Bush is only one person, there are checks and balances and the Democrats are not doing their job. Actually the whole political system needs to be overhauled!!!!

[occams_taser]

They''re just trying to steal all your retirement money to support another stock market bubble. Nothing to see here.

[hoosiermoon]

Sounds like a good reason to stop the war in Iraq and start putting the 10 billion a month into social security rather than a senseless war. I''ve been reading a book called Running On Empty by Peter G. Peterson. He''s been sounding the alarm about our fiscal trainwreck for years. Politicians don''t care about causing it as long as it doesn''t happen on their watch.

[quetzal0666]

Man, why am i paying into something ill never receive,
i could use that money instead on something else,
can we sue for Fraud?

[mrassekh]

We could cut back on (or eliminate) the billions of dollars we''re spending on the war.

[arthurcl1]

Thanks for Emperor Bushes poor economics this whole country is going bankrupt!@

[bobnjersey]

[Treasury Secretary Henry Paulson, one of the trustees, warned that the country was facing a fiscal train wreck unless something is done. ]

hey henry ... just have the fed guarantee the payments like you had them do for your investment bank buddies.

[mudrose-2009]

Thanks for Emperor Bushes poor economics this whole country is going bankrupt!@
Posted by arthurcl1

The Congress has been stealing Social Security forever. How is that Bush''s fault? You are mentally bankrupt, I do hope you know that.

[sleepyric]

If the political *** in Congress would quit "borrowing" from SS, it would be solvent. What ever happened to the "lock box"??? Throw them all out, and elect new people is the only way to save both programs.

[lisamh4]

Republicans are such suckers. How many times did Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare. They knew the voters wouldn''t go for it so they just did the easy thing and bankrupted the US government through trillion dollar wars and tax breaks for zillionaires. When old republicans are out on the streets eating with the dogs maybe then they will realize how *stupid* they are how they''ve been had while the real richies hang out on their luxury yachts drinking Cristal.

[mudrose-2009]

How funny. The government can''''t handle Medicare or Social Security, yet some people want the government to spend a trillion dollars on two failed wars.

Posted by FloydZepp

Our budget accounts for military spending. The fact that the Carton Clintoons like the Carton Carter didn''t set aside money for the military doesn''t mean it shouldn''t be part of the budget. National Defense is part of the budget and the military is part of that defense Zippo.

[ramos937]

And this despite the fact that millions of illegals pay into it and will never see a penny of it. So what happens to all of it?

Posted by rudy654 at 02

----------------------------------------

Silly Rudy - the answer is plain. We are spending over $12 Billion per month in Iraq and all of it is borrowed from social security and aboard. Did you not know that??

[bobnjersey]

[Bush is only one person, there are checks and balances and the Democrats are not doing their job. Actually the whole political system needs to be overhauled!!!!]
[Posted by au_fait at 02:34 PM : Mar 25, 2008]

checks and balances ... where are they at?

democrats not doing their job ... what job might that be?

whole political system needs to be overhauled? agreed ... but it wont happen until a major event occurs ... and no event having occured to date is apparently major enough.

[lisamh4]

Republicans are such suckers. How many times did Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare. They knew the voters wouldn''t go for it so they just did the easy thing and bankrupted the US government through trillion dollar wars and tax breaks for zillionaires. When old republicans are out on the streets eating with the dogs maybe then they will realize how *stupid* they are how they''ve been had while the real richies hang out on their luxury yachts drinking Cristal.

[mudrose-2009]

Posted by lisamh4

See that''s why the Dimnowits don''t advance. They have a warped sense of thinking. Bush has warned about the Social Security problem and offered one way to handle it. Dimnowits like you want the Government to secure the very thing they keeping diping into. Who''s got a mental problem?

[bobnjersey]

[The fact that the Carton Clintoons like the Carton Carter didn''''t set aside money for the military doesn''''t mean it shouldn''''t be part of the budget.]
[Posted by mudrose at 02:41 PM : Mar 25, 2008]

this is a fact? clinton and carter never had defense spending in any of their budgets?

[ramos937]

I see lots of fraud, ID theft. Time to get tough on the illegal aliens. They are ruining the education and social services in NY and nationally. Schools are overcrowded and veterans can''''t even get assistance. We need to start taking care of our own citizens; and I''''m a liberal!

Posted by zoe2006
____________________________

You are badly misinformed my friend. The IRS and Social Security Administration have both confirmedthat illegals have contributed over $300 Billion over the years to Social Security (an unknown larger amount in withholding taxes). And they have not and cannot benefit from these taxes. Without their contributions, the SSA fund and medicare would have been bankrupted years ago instead of in about 6 years. Please do some research before posting.

[tomanyt]

Not doing hsi job, fstop100, you have to be kidding me. How about cutting free medical care, food stamps, disability to those who are able. It is about time people take responsibility for their lives and learn to work. Also we should stop giving handouts to every county and reduce the spending in Iraq! We are not the world''''s police and so we should not try to help everyone! Bush is only one person, there are checks and balances and the Democrats are not doing their job. Actually the whole political system needs to be overhauled!!!!

Posted by au_fait
Does that include bailing out Bear Stearns? Talk about handouts.

[questionnews]

Republicans are such suckers. How many times did Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare. They knew the voters wouldn''''t go for it so they just did the easy thing and bankrupted the US government through trillion dollar wars and tax breaks for zillionaires. When old republicans are out on the streets eating with the dogs maybe then they will realize how *stupid* they are how they''''ve been had while the real richies hang out on their luxury yachts drinking Cristal.

Posted by lisamh4 at 02:41 PM : Mar 25, 2008

Please provide an article, document, a reference, a link that verifies your declaration that "Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare." I haven''t ever seen or heard that before. I would like to look into that assertion.

[mudrose-2009]

Bush is only one person, there are checks and balances and the Democrats are not doing their job. Actually the whole political system needs to be overhauled!!!!]
[Posted by au_fait at 02:34 PM : Mar 25, 2008]

checks and balances ... where are they at?

democrats not doing their job ... what job might that be?

whole political system needs to be overhauled? agreed ... but it wont happen until a major event occurs ... and no event having occured to date is apparently major enough.
Posted by bobnjersey

The Dimnowits won''t even protect the country. Still no FISA bill. Do they care about a major event. Absolutely not. They don''t care. They don''t care about the people only about who controls the power. That''s why the Dimnowits want socialism. And the Dimnowits are stupid enough to give it to them. Then when they government takes everything out of them, they will still whine for more.

[lisamh4]

Mudrose, you are a *sucker*. Follow the money if you are smart enough. You can call me crazy all day. It really doesn''t mean much coming from the "mentally challenged".. Sucker...

[bobnjersey]

[The Dimnowits won''''t even protect the country. Still no FISA bill. Do they care about a major event. Absolutely not. They don''''t care]
[Posted by mudrose at 02:46 PM : Mar 25, 2008]

wasn''t the bill vetoed? why, i think it was?

they just didn''t want to protect the corporations doing the bidding for the anti-constitutional president.

[leftyintexas]

It never ceases to amaze me that there are STILL people out there who think Doofus and Butthead are the greatest thing since sliced bread. These two have been in office nearly eight years along with a Republicon controlled congress and have accomplished absolutely NOTHING unless you count the largest budget deficit in our history and two major wars at the same time, not mention the incompetence of their cronies as accomplishments. Still they blame everyone else for THEIR deeds. AMAZING !!!

[txdebb]

How about removing the cap off Social Security taxes entirely. It would be solvent for many centuries if we actually did it. I have to pay Social Security taxes on my entire earnings, why shouldn''t everyone else???

[slim1h2o]

then have complete control over who will live and die.

Posted by mudrose at 02:30 PM : Mar 25, 2008

And I suppose that you would have the doctors, and Hospitals keep that Exclusive right?

No Insurance,, or not the right kind of insurance, or little money saved, that pretty much excludes a lot of people from recieving health care in this country.

Yup ,, thats a great Medical system,, alright!!

[easeup-2009]

"And yet, $50B ($150B long term) per month goes into Saddam''''s golden toilets and is flushed to the Haliburton boardroom.

Posted by Nancy_Naive at 02:46 PM : Mar 25, 2008"

This has NOTHING to do with the war in Iraq. It has EVERYTHING to do with the fact that more people will be getting SS as baby boomers get old. Clinton had acknowledged this as an emergent issue too.

Take the Bush goggles off.

[habu99-2009]

So Junior''s buddy Paulson has been "unable to forge a consensus with Democrats"...One expects the typical Bush arrogance when dealing with any issue: "Do it my way", therefore stopping any true consensus before it begins, all for scoring political points, not to make solid policy decisions.

What was Skippy''s "policy" regarding returning Social Security and Medicare to solvency? Personal investment accounts run by corporations with the same mind-set of the greedy bankers who profited handsomely in the sub-prime mortgage debacle. Yes those very same "compassionate conservatives" who hate "big government" (except when it spies on citizens) want to simply remove the responsibility from the government, turn it over to the private sector where the vultures will pick the bones clean, then shrug at the resulting catastrophe and mumble some empty bromides about "market economics".

This isn''t a problem Bush started...nor is it one he''ll make any headway at finishing. Instead, he''ll squawk about Democrats not being democratic by rubber-stamping any hair-brained idea he comes up with to transfer yet more wealth to the wealthy. How typical.

[bobnjersey]

[Please provide an article, document, a reference, a link that verifies your declaration that "Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare." I haven''''t ever seen or heard that before. I would like to look into that assertion.]
[Posted by Questionnews at 02:46 PM : Mar 25, 2008]

it''s called ''starve the beast''.

http://en.wikipedia.org/wiki/Starve-the-beast

[joyous88]

sociasecurity is crashing because the conservatives

want it to crash

simple as that

[doctibby]

I think we should stop supporting people who do not pay into the system. Another way to fix this problem is to throw in all people into this system including the President of the US and all of Congress and sit back and watch how fast it gets fixed. Government employees receive a federal pension and never pay into social security. I believe if you are capable of working then you should not receive free care. I do agree some people need assistance some times, but it should not be life assistance. Especially those who are in their 20''s and capable of working but refuses to do so.

[mmstar20]

"nYou are badly misinformed my friend. The IRS and Social Security Administration have both confirmedthat illegals have contributed over $300 Billion over the years to Social Security (an unknown larger amount in withholding taxes). And they have not and cannot benefit from these taxes. Without their contributions, the SSA fund and medicare would have been bankrupted years ago instead of in about 6 years. Please do some research before posting"

If these jobs were given to Americans, I bet they''d be paid better wages, which would then be taxed at a higher rate, which would then put more money into SS. Now about the government "borrowing" SS money to fund itself...that''s what has to stop!

[rlenham-2009]

This is not news. Congress has the responsibility to deal with the issues in a fiscally responsible way but I frankly doubt that any politician, regardless of party affiliation, will be able to do this. They care only about getting re-elected. I wish we had term limits on members of Congress.

[joyous88]

txdeb

you are right on,

we have to subsidise business'' and the wealthy with tax breaks and write offs

they should pay the full percent that we pay and subsidize the health care system and social security

swinish capitalism

[tawabill]

Eliminate the salary caps. Quit allowing the federal govenment to borrow from the trust to finance deficit spending. Overhaul the way Medicare is structured. Cover less-costly alternatives like home care instead of only in-patient care. Either move to single-payer insurance or start requiring employers to quit shifting the burden of retiree healthcare to the public system.

[lorinkundert]

Wait until more people realize that they are not required by any Statute to pay into those systems.

[questionnews]

[Please provide an article, document, a reference, a link that verifies your declaration that "Karl Rove and GWB talk about wanting to get rid of Social Security and Medicare." I haven''''''''t ever seen or heard that before. I would like to look into that assertion.]
[Posted by Questionnews at 02:46 PM : Mar 25, 2008]

it''''s called ''''starve the beast''''.

http://en.wikipedia.org/wiki
/Starve-the-beast

Posted by bobnjersey at 02:55 PM : Mar 25, 2008


Thanks for the reference bobnjersey. Both sides on these boards throw out so much craap and I occasionally have to see where it came from.

[johngress]

Thanks for Emperor Bushes poor economics this whole country is going bankrupt!@
Posted by arthurcl1

The Congress has been stealing Social Security forever. How is that Bush''''s fault? You are mentally bankrupt, I do hope you know that.

________________________________________
Posted by mudrose at 02:39 PM : Mar 25, 2008

When you make a promise to the American people not to use the surplus and in less than a year, break it, then you are part of the problem (see below):
Bush Pledges Not to Touch Social Security Surplus: "We''re going to keep the promise of Social Security and keep the government from raiding the Social Security surplus." [Bush, 3/3/01]
Bush Spends Social Security Surplus: The New York Times reported that "the president''s new budget uses Social Security surpluses to pay for other programs every year through 2013, ultimately diverting more than $1.4 trillion in Social Security funds to other purposes." [The New York Times, 2/6/02]
If you notice, this promise was made and broken while Republicans held a majority in Congress and the Senate, as well as the Presidency.
It looks like mental bankruptcy is a hallmark of the Republicans platform.

[infe5]

These benefit programs should have never existed in the first place. Why should I have my money taken from me by the government for programs that I will never use? It infringes upon my rights. I have a retirement plan funded outside of SS, I pay for my own health insurance. I will not use SS or Medicare.
To those who don''t pay their own way, I say appeal to charities. If you''re still out of luck, who''s fault is that? Not mine.

[easeup-2009]

Posted by habu99 at 02:53 PM : Mar 25, 2008

*** are you talking about? You''re blaming Bush because Democrats & Republicans don''t get along?? ROFLMAO!!!!

BTW--Clinton wanted to invest the entire SS fund in the market.

From 1998:

"During congressional election campaigns this fall, Republican leaders and Clinton pledged to tackle the problem next year. But the options for refinancing Social Security are limited, and any change to the government''s biggest benefit program is likely to be unpopular.

Interest groups already are mounting aggressive lobbying and grass-roots campaigns.

The biggest gulf is over the idea of setting up a system of personal accounts so that workers could invest some of their Social Security contributions in the stock market: Business and conservative groups favor it, while labor unions and civil rights groups are opposed.

Because of the political dangers, some Republican leaders say action on Social Security will be stalled until the president sends legislation to Congress.

"We would not touch Social Security until we could reach a consensus on reform. Instead, personal retirement accounts would be an interim step while we consider the choices we face," said Sen. Bill Roth, R- Delaware, chairman of the Senate Finance Committee. "

You people are hilarious.....

[tkhxxx]

These problems make a recession look like a bump in the road and must be addressed NOW. Neither party is willing to tell the public exactly what is required to fix the problem because it means increasing taxes and reducing benifits. One without the other will not fix this problem. This goes against promises made by the canidates of both parties to their bases and would make them unelectable.

Unfortunately, this is what will be required. We need a candidate with enough guts to lay out the problem to the American people and then tell them the sacrifices that will be NECESSARY to fix it.

The problem is so enormous that if we eliminated the military completely, eliminated spending on education completly, and drastically reduced social programs we still might not be able to fix this problem.

The survival of our nation is at stake.

It is estimated that if immediate changes are not made to stop increases on the national debt, that by 2040 EVERY PENNY THE GOVERNMENT RECEIVES IN TAXES will be necessary just to pay the interest on that debt.

Please Google "David Walker" of the GAO for the 411 on this subject

[bobnjersey]

[To those who don''''t pay their own way, I say appeal to charities. If you''''re still out of luck, who''''s fault is that? Not mine. ]
[Posted by infe5 at 03:03 PM : Mar 25, 2008]

are you familiar w/ the concept of a society?

[geecee827]

The Repubicans have destroyed this country. Let''s just admit the truth. Beauracracy has run amok. It''s oversized and out-of-control. No Air Marshalls on our planes since 9/11? What happened to Homeland Security, remember that new federal department created by Bush that was supposed to keep us safe??? And Medicare is so corrupt it''s a disgrace. Medicare gets bilked out of millions upon millions of dollars by scam artists and con men, no oversight. The Pentagon can''t even do their job right - sending missile parts to Taiwan. What is wrong with these government morons? Do Bush/Cheney have a test for their employees. Anyone who fails, gets hired!!! What a miserable mess this government is in - all thanks to the this horrid administration. Can''t wait till 2009. We don''t need terrorists to destroy this country. The Bush Administration is doing "a heck of a job" Brownie!!!

[prinzowhales]

Election Time! And the Ritualistic Beating of the Dead Horse--Social Security and Medicare--has begun! FEAR! FEAR! FEAR! FEAR! FEAR! Its going broke, its going broke! oh, nooooooooooo! Mr. Biiiiilllllll!

[bobnjersey]

[BTW--Clinton wanted to invest the entire SS fund in the market.]
[Posted by easeup at 03:06 PM : Mar 25, 2008]

the entire fund?

[from your post]
"The biggest gulf is over the idea of setting up a system of personal accounts so that workers could invest some of their Social Security contributions in the stock market: Business and conservative groups favor it, while labor unions and civil rights groups are opposed."

[infe5]

"are you familiar w/ the concept of a society?" - bobnjersey

Tax me for roads and national defense. I''m tired of getting taxed for other''s handouts. If that makes me not compassionate, I could care less.

[leftyintexas]

The Dimnowits won''''t even protect the country. Still no FISA bill. Do they care about a major event. Absolutely not. They don''''t care. They don''''t care about the people only about who controls the power. That''''s why the Dimnowits want socialism. And the Dimnowits are stupid enough to give it to them. Then when they government takes everything out of them, they will still whine for more.

Posted by mudrose at 02:46 PM : Mar 25, 2008

Say, Doofus Jr., Didn''t your Momma teach you better than to lie ALL the time? Your moronic postings are the rantings of a bushie dead-ender. Here''s a quote from YOUR DECIDER. ''IN TERMS OF TIMETABLES,AS QUICKLY AS POSSIBLE-WHATEVER THAT MEANS. NO, I AM GOING TO-ONE OF THE THINGS THAT I THINK IS VERY IMPORTANT FOR PEOPLE TO UNDERSTAND IS THAT I BELIEVE THAT WE HAVE A DUTY TO WORK ON BIG PROBLEMS IN WASHINGTON, D.C., AND SO I''M GOING TO CONTINUE WORKING ON THIS. AND IT''S, I GUESS-I''M NOT GOING TO GO AWAY ON THE ISSUE, BECAUSE THE ISSUE IS NOT GOING TO GO AWAY''... March 2005 Washington, D.C. This is the fool you support and so you have NO credibility what-so-ever. Why do you think anyone else cares what you babble on about? Only 301 days left! Enjoy! Ha!Ha!Ha!Ha!