Lubbock Times

The Social Security and Medicare Trustees annual reports were submitted to Congress, revealing the financial challenges ahead for the programs that support millions of seniors. House Budget Committee Chairman Jodey Arrington expressed concerns about the situation, emphasizing the need for a bipartisan approach to address the looming insolvency.

"We have the highest levels of indebtedness in our nation’s history, an inflationary and anemic economy, and the two most important senior safety net programs facing insolvency. This trustees report only reiterates why we need a bipartisan Fiscal Commission to address the Social Security and Medicare Trust Funds and the $140 trillion unfunded liability on America’s balance sheet."

The reports indicate that the Social Security Old-Age and Survivors Insurance (OASI) trust fund is projected to become insolvent in 2033, while the Disability Insurance (DI) trust fund will remain stable for the next 75 years. On the other hand, the Medicare Hospital Insurance (HI) Trust Fund is expected to become insolvent in 2036, five years later than previously projected.

Despite the statutory requirement to submit the annual reports by April 1 each year, the trustees missed the deadline this year, marking the 17th time in the last 25 years.

If no corrective actions are taken, a 21 percent benefits cut to the main Social Security trust fund and an 11 percent reduction in Medicare HI payments could be expected. This would lead to a significant impact on beneficiaries, with OASI's income projected to cover only 79 percent of scheduled benefits in 2033 and Medicare HI revenues sufficient to cover 100 percent of benefits until 2036, when it would drop to 89 percent.

The looming insolvency of Social Security and Medicare underscores the importance of immediate action to secure these vital programs for current and future generations. The House Budget Committee's Fiscal Year (FY) 2025 Budget aims to prompt Congress and the President to address these challenges, offering tools like the Fiscal Commission Act to strengthen these essential programs.