Biden unsurprisingly surprises us, again…
The controversy continues for President Joe Biden as the Social Security Acting Commissioner Kilolo Kijakazi said in a statement. “The pandemic and its economic impact have had an effect on Social Security’s Trust Funds, and the future course of the pandemic is still uncertain.”
That is really scary and shocking as the projection was bumped up from 2035 and is now depleted by 2034.
Remembering last year, the SSA paid more than $1.1 trillion to beneficiaries of the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) programs.
Meanwhile, Treasury Secretary Janet L. Yellen said released a statement, “Having strong Social Security and Medicare programs is essential in order to ensure a secure retirement for all Americans, especially for our most vulnerable populations, The Biden-Harris administration is committed to safeguarding these programs and ensuring they continue to deliver economic security and health care to older Americans.”
Medicare’s hospital trust fund is projected to be unable to pay all of its bills beginning in 2026. This estimate is similar to those from Medicare’s trustees in recent years. Fixing that gap now could be achieved by increasing the Medicare payroll tax rate from 2.9 percent to 3.67 percent or by reducing Medicare spending by 16 percent each year, the report notes.
But the report highlighted that the official estimate may be unrealistically optimistic. If certain policies set to expire in the next 10 years are extended, or if other expected policy changes occur, the projections would look substantially more worrying.
Long term, the actuaries said they did not think Covid-19 itself would have a substantial influence on Medicare spending on hospital care. On the one hand, the death of many vulnerable, older Americans from the virus may reduce future spending they would otherwise have received. On the other, the actuaries expect that some people may have additional health care needs from the syndrome known as long Covid.
Meanwhile, Food and Drug Administration recently approved a very expensive Alzheimer’s treatment. Is that an influence from the President?
I am really hopeful that this promise won’t be broken even though it’s already being altered.