Tuesday, 02 January 2024 12:17 GMT

Shutdown Politics And Partisan Gridlock Put Medicare And Social Security At Greater Risk Of Insolvency


EINPresswire/ -- Dr. Steven Fox, a physician and expert in geriatric and disability medicine, warns that while this government shutdown alone does not cause Medicare or Social Security to fail, the combination of shutdown brinkmanship, debt- ceiling standoffs, and higher partisan gridlock dramatically increases the likelihood of both programs becoming insolvent without major corrective action within the next seven years.

"Medicare and Social Security are essential lifelines for older Americans. Political stalemates don't change the math-but they delayed the solutions every year Congress delays, the eventual fixes get bigger, harder, and more painful," said Dr. Fox.

* Shutdowns don't stop benefits: Social Security checks and Medicare benefits continue during a shutdown, as they are mandatory spending.

* Debt ceiling standoffs raise default risk: If a shutdown coincides with a debt- ceiling impasse, the Treasury Department could face difficulties paying obligations on time, leading to delays in benefits and provider payments.

*Insolvency risk rising: Both the Social Security OASI Trust Fund and Medicare HI Trust Fund were projected to be depleted around 2033.

Current analysis is now projecting 2032. Without significant near term reforms, Social Security benefits could face automatic cuts of 20-25% and Medicare Part A would be limited to incoming revenues.


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