Social Security and Medicare Trustees Friday issued their annual report on the financial future of the two entitlement programs. The prognosis isn’t good, and, in fact, is even worse than was reported just one year ago.
According to the report, Social Security is now permanently cash negative and can no longer be funded solely from the payroll tax. It is projected to exhaust funds in 2036 — one year earlier than the report predicted last year.
Medicare isn’t faring any better. The trustees expect the fund to run out of money in 2024, and not 2029 as was previously expected. For the sixth year in a row, the trustees also, made an “excess general revenue Medicare funding” determination.
It only requires two consecutive determinations before the president is required to submit a legislative proposal to deal with the funding crisis within 15 day of his next budget.