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Medicare, Social Security Will Go Bust Sooner

By John Johnson,  Newser Staff

Posted May 12, 2009 3:56 PM CDT
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(Newser) – The recession has hurt the already-shaky finances of Medicare and Social Security, the Washington Post reports. Medicare is now projected to run out of money in 2017, two years earlier than the last projection. Social Security, meanwhile, is expected to be insolvent in 2037, four years earlier. The annual report reflects the rising unemployment rate—and the corresponding drop in workers paying into the systems.

“The longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be,” said Treasury chief Timothy Geithner. The findings aren’t a huge surprise, but show that the recession is taking a far greater toll on the entitlement programs than the milder recession earlier this decade.

Health and Human Services Secretary Kathleen Sebelius speaks as Treasury Secretary Timothy Geithner listens during a news conference Tuesday.
Health and Human Services Secretary Kathleen Sebelius speaks as Treasury Secretary Timothy Geithner listens during a news conference Tuesday.   (AP Photo)
Treasury Secretary Timothy Geithner speaks today after the annual spring meeting of the Social Security and Medicare trustees.
Treasury Secretary Timothy Geithner speaks today after the annual spring meeting of the Social Security and Medicare trustees.   (AP Photo)
Treasury Secretary Timothy Geithner listens at a news conference today.
Treasury Secretary Timothy Geithner listens at a news conference today.   (AP Photo)
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COMMENTS
Showing 3 of 5 comments
justme
May 13, 2009 12:54 PM CDT
Current projections don't foresee all the new spending initiatives that liberals might want to add to the Medicare budget while they are "fixing" it. They also don't foresee the benefits scale back that will eventually have to be written in to keep it afloat.
Snowleopard
May 13, 2009 6:34 AM CDT
Over the past 8 years, Bush tried to 1) overhaul social security to allow for private investment in the stock market (which we should all be glad didn't happen when considering its recent volatility), and 2) "reformed" medicare so as to put it one trillion dollars further into debt.
paul123
May 13, 2009 4:44 AM CDT
Where are all the liberals in this thread? I thought the democrats said there was no medicare crisis during the Bush administration?

Beware the hype: This is a false crisis
Salon

 
entitlement programs • Medicare • recession • Social Security • Social Security trustees • Jay-ZTV

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