White House Forecast: Medicare fund to be exhausted in 2026 year

The Medicare financial outlook has worsened since 2017, and the Social Security Administration continues to face serious financial problems in the long run.

Фото: Depositphotos

This is evidenced by the analysis of the White House, writes New York Times.

According to the forecast of the presidential administration, the trust fund Medicare will be exhausted in 2026, while in 2017, the government assumed that the fund would exhaust itself in 2029.

Social Security Administration Funds will also face long-term problems. In particular, the pension fund and the disability benefit fund, taken together, are expected to be exhausted in the 2034 year.

More than 60 million US residents receive social security from the state, are subscribers Medicare or use both programs. These two programs account for about 40% of all federal spending.

The deterioration in the forecast of the financial future of the funds is not in the least connected with the reduction of taxes in the United States, because of which revenues have been reduced.

But the Trump administration hopes that the cost of the program will be covered by the growth of the economy.

The report states that a less favorable outlook for the fund Medicare caused by "adverse changes" in income and expenditure program. It is expected that the income to the fund Medicare will be lower than last year due to “lower payroll taxes and lower projected gross domestic product”.

At the same time, according to the report, expenses from the fund Medicare “Are expected to be higher than last year” due to the rising cost of medical services and rising insurance premiums.

The main cause of the long-term financial problems of the social insurance fund is the reduction in the number of working Americans per beneficiary of social payments from the fund.

In 1960, there were about five workers for each beneficiary of social security. The ratio of the number of working Americans to the number of beneficiaries fell to 3,3 in 2005, and then to 2,8 in 2016. It is projected to fall to 2,2 by 2035.

In addition, the burden on social security funds is increasing due to the aging population. Expected number of beneficiaries Medicare will increase to 89 millions in 2040, today there are 60 millions. And the number of people receiving social security will increase to 91 million in the same period, now from 62 million.

Medicare - this is a national program health insurance in the US for persons from 65 and older. Some people younger than 65 may also participate in this program if they have certain health problems or disabilities. The program helps pay for medical care at the expense of money that goes to a special fund. It is financed by a portion of the payroll tax levied on both workers and employers.

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