On Monday, the U.S. Treasury released reports that show an improvement in the trust funds supporting Social Security and Medicare benefits for seniors. This is due to a combination of stronger economic growth, productivity, and immigration that have increased revenue collections.
The Medicare Hospital Insurance Trust Fund’s reserves are now projected to last until 2036, which is five years later than previously forecasted. After that, the program will only be able to pay 89% of total scheduled benefits. This news shows how crucial it is for continued economic growth and revenue collection to sustain these vital programs for seniors and the disabled.
In addition, reserves for the combined Social Security trust funds are now projected to last until 2035, one year later than last year’s report. Once depleted, the Old-Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund will only be able to pay 83% of scheduled pension and disability benefits on a combined basis.
This news highlights the importance of continued economic growth and revenue collection to sustain these vital programs for seniors and the disabled. It also underscores the need for policymakers to take action to ensure that these programs remain solvent in the long term.
