Social Security & Medicare– Bankrupt? No. Insolvent? Yes.
You may have seen Sen. Rick Scott (R-FL) promoting an 11-point plan to “rescue America.” While part of that plan calls on requiring the nearly 50% of Americans who pay no income tax to pay something, the other part relates to Social Security and Medicare. The trust funds (surpluses) will be exhausted on those programs in twelve and four years, respectively. Scott talked about “sunsetting” both programs as a way to force Congress to take action to reform them and make them solvent. But it’s Scott’s use of the word bankrupt that got FactCheck.org to analyze that claim. It is not technically correct, because benefits can still be paid once the surpluses of both programs are exhausted, albeit at a much lower rate. Read full Fact Check analysis here and read a different synopsis in The Miami Herald here. Both articles relate to Scott’s interview on Fox News Sunday with John Roberts.