Can you spell i-c-e-b-e-r-g? Well, we’ve hit one, and our ship is taking on water.
Two weeks ago the trustees for Medicare released their annual report. The report, and the warnings it contained about the uncertainty of future costs, got some attention. But not nearly enough.
According to the report, the Medicare Trust Fund would be exhausted by 2024, only 12 years from now, under current law. Ditto the Social Security Trust Fund. It will be broke by 2033, 21 years from now. When the Social Security Trust Fund is broke, benefits will need to be cut by 25 percent. This, by the way, is the best-case scenario. As they did last year and the year before, the Medicare trustees express significant doubt that projected savings under current law will be realized.(Read More)