The Hospital Insurance (HI) Trust Fund is Only Five Years from Insolvency. The Trustees project the trust fund will be depleted by 2026, the same year they projected in their prior (pre-COVID) report. This is the closest the trust fund has been to insolvency since 1997.
The 2021 Medicare Trustees Report estimates that Medicare’s hospital insurance trust fund will be insolvent in 2026. From then on, it will rely on incoming revenues, but there isn’t enough cash.
In 2026, the hospital insurance fund will be able to cover only about 91 percent of its bills. After that, the gap will continually increase. Payments to doctors, hospitals, and other medical providers will rapidly reduce. Services will be reduced.
Worse yet, this is based on cost-reduction measures but the trustees noted that Medicare’s “long-range costs could be substantially higher than shown throughout much of the report if the cost-reduction measures prove problematic and new legislation scales them back.”
Expanding Medicare Until It Dies five Years from Now
Capitol Hill has expressed no concern. Since the August report was released, Congress passed a massive $1.2T bill and attempted to pass a $3.5T bill now priced at $1.85T. They concentrate on climate infrastructure and welfare. The second bill expanded the nearly defunct Medicare to include dental, hearing, and vision.
Instead of expanding Medicare endlessly, progressives now want Medicare for All. A collapse might suit their needs. They can redistribute the ‘wealth’ to everyone, providing bad healthcare for all.
“Spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs, like Social Security and Medicare, is the definition of fiscal insanity,” Senator Joe Manchin said in September, calling for Medicare funding to be “stabilized” before any expansion was pursued.
Manchin calls himself a “moderate,” but he’s not, however, even he can see these old-age programs will soon collapse and must be cut, not expanded.
Putting millions of people coming or already here illegally, as well as refugees who haven’t earned it, on the programs will speed up its demise.
Republicans should have made necessary cuts when they had the power because Democrats never will. All they will do is spend.
Social Security is Only 13 Years from Insolvency
Social Security cannot guarantee full benefits to current retirees under current law. The Trustees project the Social Security Old-Age and Survivors Insurance (OASI) trust fund will deplete its reserves by 2033 and the Social Security Disability Insurance (SSDI) trust fund will become insolvent by 2057. The theoretical combined trust funds will exhaust their reserves by 2034, when today’s 54-year-olds reach the full retirement age and today’s youngest retirees turn 75. Upon insolvency, all beneficiaries will face a 22 percent across-the-board benefit cut.
Yet, Democrats want to put tens of millions of foreigners here illegally on both systems.