Social Security, Medicare gain years before benefit cuts
The programs have a little longer than previously forecast before they run out of money — about a decade
What happened
Medicare and Social Security have a little longer than previously forecast before they run out of money, thanks to low unemployment and rising wages plus lower expenses, trustees of the two social welfare programs said Monday. Medicare's trust fund for hospital expenses will see its reserves depleted in 2036, five years later than projected last year, and Social Security's combined retirement and disability funds will pay full benefits until 2035, a year longer than expected.
Who said what
The report offers a "measure of good news," but "Congress still needs to act" to avoid benefit cuts, Social Security Commissioner Martin O'Malley told The Associated Press. With 71 million people receiving Social Security benefits, "the stakes are simply too high to do nothing," AARP CEO Jo Ann Jenkins said.
What next?
Without congressional action, Social Security is projected to start paying out 83% of benefits in 2035 and Medicare will pay out 89%. President Joe Biden said he won't allow cuts to benefits, suggesting uncapping taxes on high-earners. Some Republicans have proposed cutting benefits or raising the retirement age.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
How climate change is affecting ChristmasThe Explainer There may be a slim chance of future white Christmases
-
The MAGA civil war takes center stage at the Turning Point USA conferenceIN THE SPOTLIGHT ‘Americafest 2025’ was a who’s who of right-wing heavyweights eager to settle scores and lay claim to the future of MAGA
-
The 8 best drama movies of 2025the week recommends Nuclear war, dictatorship and the summer of 2020 highlight the most important and memorable films of 2025
-
House GOP revolt forces vote on ACA subsidiesSpeed Read The new health care bill would lower some costs but not extend expiring Affordable Care Act subsidies
-
Senate votes down ACA subsidies, GOP alternativeSpeed Read The Senate rejected the extension of Affordable Care Act tax credits, guaranteeing a steep rise in health care costs for millions of Americans
-
Are Republicans going to do a deal on health care?Today's Big Question Obamacare subsidies are expiring soon
-
Trump’s Ukraine peace talks advance amid leaked callSpeed Read Trump’s envoy Steve Witkoff is set to visit Russia next week
-
Memo signals Trump review of 233k refugeesSpeed Read The memo also ordered all green card applications for the refugees to be halted
-
Pentagon targets Kelly over ‘illegal orders’ videoSpeed Read The Pentagon threatened to recall Kelly to active duty
-
Judge tosses Trump DOJ cases against Comey, JamesSpeed Read Both cases could potentially be brought again
-
US, Kyiv report progress on shifting Ukraine peace planSpeed Read The deal ‘must fully uphold Ukraine’s sovereignty,’ the countries said
