News

Report Shows Social Security, Medicare Need Sound Financial Basis

Washington, D.C. - The Social Security and Medicare Boards of Trustees released their annual actuarial report on the financial health of the Social Security and Medicare programs.  In response, U.S. Rep. Phil English (R-Pa.), a senior member of the House Ways and Means Committee, which has jurisdiction over the entitlement programs, released the following statement:

“The findings in today’s report make clear that we are on a fast track toward bankrupting our Social Security and Medicare programs if Congress does not act to strengthen these critical programs.

“As the baby boomer generation heads into retirement and fewer workers pay into the Social Security and Medicare trust funds, the resources available to sustain these programs will simply run dry.

“Washington must move forward free of partisanship and address the inter-generational challenges of the modern day and embrace policies that that will guarantee access to these programs to everyone at every age.”

According to the report, Social Security will begin paying out more money than it takes in from payroll taxes in 2017.  By 2041 the Social Security Trust Funds will be exhausted, while the Medicare HI Trust Fund will exhaust its assets by 2019.  In addition, in 2006, Medicare's annual costs were about 72 percent of Social Security's. This year, they are now projected to surpass Social Security expenditures in 2028.