Yea, Medicare is the model for success and Social Security is in the Red. Much like most of everything the government runs. "In a newly released report, the Government Accountability Office (GAO) estimates that, in fiscal year 2010, $48 billion in taxpayer money was squandered on fraudulent or improper Medicare claims. Meanwhile, the nation’s ten largest health insurance companies made combined profits of $12.7 billion in 2010 (according to Fortune 500). In other words, for every $1 made by the nation’s ten largest insurers, Medicare lost nearly $4." http://www.weeklystandard.com/blogs...s-much-money-health-insurers-make_552860.html "In fact, Lew's own budget shows Social Security paying out $56 billion more than it takes in this year. That's serious money — almost as much as House Republicans just voted to cut from discretionary spending programs in the name of deficit reduction." "A powerful combination of beneficiaries, interest groups such as AARP, and congressional Democrats insist Social Security isn't really losing money but merely withdrawing cash from the trust fund it has built up with excess payroll taxes since 1983." That's half true. Since 1983, Americans have indeed paid far more taxes than Social Security needed to pay benefits. In theory, at least, the trust fund contains about $2.6 trillion and would keep the program solvent until approximately 2037 — if the fund were real. Sadly, the trust fund is, at least in cash terms, a fiction." "In reality, the trust fund is no more than a collection of IOUs. The money went out the door as soon as it was collected to pay for roads and bridges and aircraft carriers and food inspection and everything else the government does. While they lasted, the Social Security surpluses made deficits seem smaller. But they didn't get saved." http://www.usatoday.com/news/opinion/editorials/2011-02-22-editorial22_ST_N.htm
We Well said. Those who say there is nothing the matter with Social Security, Medicare and Obamacare as they are constituted either have their heads in the sand or are ignoring the reality for political purposes. At 60 I will probably receive the full lot of benefits as promised but mt 30 YO child won't nor will my 45 yo nephew and if you are under 50 neither will you. In fact it is likely your standard of living will be held down paying for my benefits. (thanks I appreciate it). That is the theory anyway in fact at some point the youth will revolt and force changes to keep their hope alive. Change will come so chose to make a reasoned change or face change at the point of a gun (figuratively I hope). Instead of kowtowing to political interests (and in this case the Dems have been much the worse actors) we need to work a reasonable measured and staged path to solving the problem. In the short term fixing the lack of economic growth and potential for recession is more critical but and solution to that must have the long term issues of SS & medi Care in mind. Much can be done such as really saving $750BB a year on medical costs as pointed out here.
You won't get any arguments from me on Medicare waste and fraud, I saw it with my aged parents. But neither Medicare or Social Security is bankrupt or in the red . . . yet. Medicare's trust fund runs in the red in 2024 if nothing is done. SS has enough to pay out all benefits until 2036, after which it will pay out 77% of benefits.
But they have surplus funds to stay solvent until 2024 and 2036 respectively. The Baby Boomers front-loaded a ton of payments and have only just begun to receive benefits.
Neither program has assets anywhere near the levels required. The unfunded Medicare liability is trillions of dollars. The unfunded SS liability is hundreds of billions. Because they aren't accounted for in the same manner as private pension funds we can say they are solvent, but it is a lie.
