The “Trust Funds” for Social Security and Medicare - Kiplinger
If you pay attention at all to print and electronic media, you’ve likely heard a fair amount of noise about the “Trust Funds” which contain surplus money reserved to pay future Social Security and Medicare benefits. But the media noise can often obfuscate the reality, which is that only two of the Trust Funds are expected to run dry in the near future – the Social Security Trust Fund and Medicare’s Hospitalization Trust Fund. Social Security’s Disability Trust Fund is actually very robust and not expected to be depleted in the foreseeable future. Nevertheless, the fact that the Social Security and Medicare Hospitalization Trust Funds are projected to be empty in the early 2030s is distressing news, because no Trust Fund reserves for these programs would mean a cut in benefits for all beneficiaries. This Kiplinger article by Elaine Silverstrini spells out the details, but unless Congress reforms these programs soon, Social Security beneficiaries may see a 23% cut in their monthly benefits, and hospitals will receive less reimbursement for their services.
For its part, the Association of Mature American Citizens (AMAC) has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee which restores the program to solvency without raising payroll taxes. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC’s Social Security Guarantee, click here.