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Yearly Reports for Medicare and Social Security

Yearly Reports for Medicare and Social Security

There has been a severe dearth of funds for Medicare and the Social Security. The trustees are found to submit reports that show this fund deficit, much of which has been caused due to recession. In addition to this, they are forecasting other terrible outcomes. This article enumerates the various aspects of the reports, along with other details of the measures undertaken to solve the problems.

The reserve funds of the 2 largest projects of the government have failed in the previous year, because of the economic downturn that has affected different sections of the nation's budget.

The Medicare and Social Security trustees were found to submit their yearly statement of the funding for both the projects on May 12, 2009. Prior to the report submission, majority of the private financial experts remarked of their anticipation, that both the projects will suffer dearth of funding much earlier than that forecasted.

One year before, the project trustees claimed that the trust finance unit of Social Security, will begin disbursing more benefits in comparison to the amount of tax that would be collected in the year 2017. On the basis of this prediction, they estimated that in the year 2041, the finance unit of the trust will get empty if such a thing continues.

The reserve funds of Medicare compensates for the patients' hospital care services and the circumstances is much vital for them. For this, the trustees predicted that it would release benefits in comparison to the amount of tax, which would be collected within one year. If this continues then as per the estimation of the trustees, the Medicare reserve funds will get emptied by the year 2019.

However, it has been claimed by the experts that if this recession continues for the next 10 years, then there will be a miserable prediction for both Medicare and Social Security in the statement report of the trustees. The recession has already compelled many employees to get laid-off. From December 2007, it commenced and since that time, around 5.7 million vacancies have been closed down. The rate of unemployment has attained 8.9% this April, 2009.

It was recently declared by the CBO (Congressional Budget Office) that the Social Security will accumulate only 3 billion dollars extra in the year 2010, in comparison to the benefits it will release. One year back, CBO stated that for the fiscal year 2010, the Social Security will collect an extra amount of 86 billion dollars, for which the collection process will commence from October 1, 2008. The sudden drop from $86 billion to $3 billion is because of the current economic slowdown.

One thing goes for sure and it is that the Social Security cost benefits will not be affected anyhow by the petite extra sum of money. More sum of money will be taken on loan by the government at the moment, when the federal funds goes empty because of recession and huge amount of money will be invested to support the unstable banking process of the nation.

Since years, more sums of money were collected by the Social Security reserve funds in comparison to the amount released by it as benefits. This has resulted in the scarcity of funds, which might have been used by the government for its other projects.

Despite of the severe downfall of Social Security extras, the status of Medicare is even more critical, portraying the burden due to the increasing health care expenses, along with the decline in the collection of levies and taxes.

Because of this, many people are urging President Barack Obama to concentrate on Medicare before attending the Social Security issues.

On May 11, 2009, the president promised in a forum, to accomplish a savings of $2 trillion over health care expenses for the following 10 years from now onwards. However, it is still doubted by many health care experts that how will Obama's proposals will help in accomplishing his objective, to expand health insurance coverage to around 50 million residents of the country, who are still uninsured? The Obama administration is urging the Congress to approve the health care bill by this year, favoring to deal with the health care condition of the country, prior to dealing with Social Security.

The statements of the trustees is being anticipated to strike a hot argument concerning the two biggest benefit projects of the government, which as per the opponents will feature the presidents incapability to solve the critical tribulations of the budget plan, i.e. increasing investment prior to millions of baby boomers retirement, which has aided in the deterioration of the issue further.

The finance experts claimed that unless the recession is over and the nation's economic condition changes, there is no hope for the revival of the budget plan.


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