Social Security and Medicare Report Details the State of Our Entitlement Society
Monday, April 23rd, 2012 and is filed under Blog, Debt, News
The Board of Trustees for Medicare and Social Security released their annual report on the fiscal state of the two largest federal programs today. The prognosis is not pretty. Here are some key details:
- Medicare’s hospital insurance trust fund (Part A) will run dry by 2024. This, despite the anticipated 2% cuts from the impending sequestration. This year’s total Medicare deficit is expected to total $28.9 billion. Medicare has run a deficit ever since 2008, and will continue to do so indefinitely.
- Social Security benefits for seniors will run out by 2036 and disability benefits will run dry in just 4 years! Much of that is do to the Obama economy that has realized a sharp spike in disability claims.
- In 2011, Social Security provided 44.8 million seniors with benefits compared with 43.8 million in 2010. The total cost of the program, which includes an additional 11 million receiving disability benefits, was $736 billion!
- There are just 2.8 workers per recipient of Social Security. That is a recipe for disaster.
- Medicare serviced 48.7 million at a gross cost (not including the offsetting revenues from premiums paid by seniors) of $549 billion. $256.7 billion went to part A, $225.3 billion was spent on part B, and $67.1 towards part D.
- Bush’s heralded Medicare Part D will run a $14.3 trillion deficit.
One thing I found interesting is that, despite Social Security’s growing population, there are actually more people receiving food stamps than Social Security (old-age benefits). Also, the cost of Medicare Part D is as much as the cost of Food Stamps until 2010.