The world has been impacted in several ways by the COVID-19 pandemic. It has caused a loss of jobs, housing, and more. It seems like the government has tried to assist financially through stimulus checks, eviction moratoriums, and child income tax credits. Still, it seems they are at the end of the road regarding social security benefits. The social insurance program, which consists of retirement, disability, and survivor benefits, is eligible for those age 62 or older, disabled or blind, and has enough work credits. However, it will be a thing of the past in the next 12 years, which will affect not only Baby Boomers but also Millennials and Generation Z.
According to an annual report released Tuesday 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. CNN reports that this is one year earlier than what was first reported last year due to the pandemic and economic recession. This loss of benefits will threaten retirement payments and increase healthcare costs for older Americans.
CNBC News reports that although there was no change from last year’s report, it states that Medicare’s hospital insurance fund would be depleted by 2026. This would impact 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.
Trustees are urging lawmakers to act now and address the long-term shortfall, but Congress has held off on doing so. Lawmakers could increase payroll taxes, curtail benefits or enact some combination of both to offer a solution. Hopefully, President Joe Biden can make some mandate to save social security. If you recall, on the campaign trail, he spoke on expanding Social Security benefits. Still, his economic agenda hasn’t spoken on what the future of benefits would look like so far.
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