WASHINGTON – The financial security on which millions of older Americans depend will fall short of funds to pay full benefits over the next decade, according to a Social Security and Medicare report released Friday.
Medicare, the federal health insurance that covers 65 million seniors and disabled beneficiaries, will not be able to pay full benefits for patient visits to hospitals and stays in nursing homes starting in 2031, according to the report.
And in 2033 Social Security won’t have enough money to meet full retirement payments for its 66 million beneficiaries.
The report is a nod to politicians to address the fragile state of social programs, which are expected to become more expensive in the coming years as more Americans age and qualify for retirement.
“Members of the Social Security and Medicare trust continue to recommend that Congress review the predicted decline in these funds in time to gradually implement the necessary changes,” said Kilolo Kijakazi, the commissioner of Social Security.
This Friday’s report is a mix of good and bad news: Medicare’s forecast for when it will run out of funds has been extended by three years since last year’s report predicted the government would have no funds to pay benefits. in 2028.
But the date for Social Security was advanced one year.