Peterson Foundation on Social Security, Medicare Trustees Reports: Doing Nothing Today Means Cuts Tomorrow

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today following the release of the 2019 annual reports of the Social Security and Medicare Trustees:
“The latest trustees reports make clear that Social Security and Medicare beneficiaries face substantial cuts in the near future unless policymakers take action to make these vital programs solvent.
“According to the report, Social Security will pay out more than it takes in next year and every year going forward. That’s the definition of unsustainable. The Social Security retirement program will become insolvent by 2034, at which time beneficiaries will receive an immediate 23 percent cut.
“Medicare is also on a disturbing path, as its hospital insurance program will become insolvent in just 7 years, which would jeopardize healthcare for 73 million Americans.
“Continuing to ignore alarming financial projections for critical programs is unacceptable.
“Unfortunately, this is not new news. As America’s population ages and healthcare spending rises, we have known that these essential programs are coming under increasing financial strain. To build the future Americans want and deserve, our elected leaders should take action on the many readily available solutions that can be phased in gradually and fairly to secure these programs for the long term.”
Further Reading
National Debt Projected to Hit 175% GDP; Interest Totals $99 Trillion
Compared with the previous 30-year projections, spending will be higher, revenues lower, interest rates and interest payments elevated, and the national debt significantly larger.
Federal Healthcare Costs on Track to Reach $3.1 Trillion by 2036
Federal healthcare programs are among the fastest-growing drivers of federal spending, and their continued growth will put significant upward pressure on the national debt.
Quarterly Treasury Refunding Statement: Higher Borrowing Compared to Last Year
Key highlights from the most recent Quarterly Refunding include an increase in anticipated borrowing of $249 billion compared to the same period in the previous year.