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In the updated reports released by the Trustees for Social Security and Medicare today, the Trustees identified a slight improvement in the projected depletion dates for their trust funds. The Social Security Trustees note that the Old-Age and Survivors Insurance (OASI) Trust Fund is now expected to become depleted in 2034, compared to 2033 in last year’s report. The Medicare Trustees project that the Hospital Insurance (HI) Trust Fund would become depleted in 2028, compared to 2026 in last year’s report.
The Trustees reports confirm that although the COVID-19 pandemic may have had some effect on the financing and disbursement of benefits, both OASI and HI will soon be unable to meet current commitments. The future of the Social Security and Medicare programs remain at risk as demographic changes exacerbate the imbalance between revenues dedicated to the funds and promised expenditures. The reports make clear that the funds remain on an unsustainable path, despite many available options to improve their finances.
If depletion of the trust funds occurs, absent legislative changes, millions of older individuals could face an immediate cut in their Social Security benefits and payments to their medical providers from Medicare would be reduced.
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