Social Security, Medicare Woes Unchanged
Programs bound for insolvency, annual status report says
By Sam Gale Rosen,  Newser Staff
Posted Mar 25, 2008 5:15 PM CDT
Secretary of Treasury and Social Security and Medicare Boards of Trustees Managing Trustee Henry M. Paulson Jr., attends a news conference at the Treasury Department building, March 25, 2008.   (AP Photo/Manuel Balce Ceneta)
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(Newser) – Social Security and Medicare still face financial problems down the road, but the situation became no worse last year, trustees for the programs said today. The trustees predict that Social Security will become insolvent in 2041, Medicare in 2019. True to form, Republicans sounded alarms about the issue while Democrats pointed to bigger near-term problems, CQ Politics reports.

"If we do not take action soon," said Treasury Secretary Hank Paulson, "the coming demographic bulge will jeopardize the ability of these programs to support people who depend on them." The report proves the issue is "a very real problem that is on our doorstep," says Republican Sen. Judd Gregg. But Rep. Charlie Rangel, a Democrat, said, “We will do what we have to in order to restore long-term financial stability to these programs."