Social Security the government program which assist retirees, the disabled and mentally ill is in the red. This is the first time since 1983 Social Security reforms took place. The government safety net paying out more benefits vs. payroll taxes takes in.
There is good news on Medicare front. Medicare is financially stable for the next 12 years thanks health care reform.
“The financial status of the HI trust fund is substantially improved by the lower expenditures and additional tax revenues instituted by the Affordable Care Act,” the program’s actuary said in its annual report. “These changes are estimated to postpone the exhaustion of HI trust fund assets from 2017 under the prior law to 2029 under current law and to 2028 under the alternative scenario.”
The Social Security Actuary says the program still need reform for both long and short term. The Congress has not pass Medicare Doctor Fix.
Meanwhile the White House is touting the Health Care Reform for the good news in Medicare. “The impact of health care reform is made clear by the Trustees Reports, which show some very positive developments for Social Security and especially Medicare,” said Treasury Secretary Timothy F. Geithner. “But they also remind us that we must continue to make progress addressing the financing challenges facing the long-term solvency of these programs.”