Social Security trust funds are projected to run out of money in 12 years due to Covid

Social Security trust funds are projected to run out of money in 12 years due to Covid

Editorial Photo Credit: Lane V. Erikson

According to an annual report released by the Social Security and Medicare trustees, Social Security will have to cut benefits by 2034 if Congress does not address the program’s long-term funding, one year earlier than what was first reported in 2020 due to the pandemic and economic recession. This loss of benefits will threaten retirement payments and increase healthcare costs for older Americans.

CNBC News also reported that Medicare’s hospital insurance fund would be depleted by 2026. Impacting payments for doctors, hospitals, and nursing homes. Meaning they would not receive their full compensation from Medicare and patients would likely be responsible for paying for coverage.

  • The circumstances, which were exacerbated by the Covid pandemic, threaten to shrink retirement payments and increase health-care costs for Americans in old age sooner than expected.
  • The financial outlook for Social Security and Medicare, two of the nation’s preeminent safety net programs, has deteriorated over the past year.

Read more here: CNBC News

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