May 6, 2024

Social Security and Medicare Trust Funds Could Soon Be Depleted

By the Numbers: 2024 Trustees Reports


Today, the Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remains at risk. The Social Security Trustees note that the Old-Age and Survivors Insurance (OASI) Trust Fund is expected to become depleted in 2033, the same year as last year’s report and as the Congressional Budget Office projected earlier this year. Upon depletion of the OASI Trust Fund in just 9 years, millions of older Americans would face an automatic cut of 21 percent to their Social Security retirement benefits.

The Medicare Trustees project that the Hospital Insurance (HI) Trust Fund, which finances Medicare Part A, would become depleted in 2036, an improvement from the projected depletion year of 2031 in last year’s report. Upon depletion of the HI Trust Fund, payments to medical providers would be reduced by 11 percent.

The reports make clear that the trust funds of these vital programs remain on an unsustainable path. The good news is that it is entirely within policymakers’ control to shore up Social Security and Medicare and preserve them for the future. Doing so will not only protect millions of beneficiaries — and especially our most vulnerable citizens — but will provide stability and strength to our fiscal and economic outlook.

Related: Social Security Faces Serious Financial Shortfalls, and Other Takeaways From the Trustees Report

Image credit: Photo by Spencer Platt/Getty Images

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