William Spriggs’ Post

𝗧𝗵𝗲 𝗕𝗮𝗱 𝗡𝗲𝘄𝘀: 𝗠𝗲𝗱𝗶𝗰𝗮𝗿𝗲 𝗮𝗻𝗱 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗔𝗿𝗲 𝗦𝘁𝗶𝗹𝗹 𝗚𝗼𝗶𝗻𝗴 𝗕𝗿𝗼𝗸𝗲; 𝗧𝗵𝗲 𝗚𝗼𝗼𝗱 𝗡𝗲𝘄𝘀: 𝗧𝗵𝗲𝘆’𝗿𝗲 𝗚𝗼𝗶𝗻𝗴 𝗕𝗿𝗼𝗸𝗲 𝗔 𝗟𝗶𝘁𝘁𝗹𝗲 𝗕𝗶𝘁 𝗦𝗹𝗼𝘄𝗲𝗿 The Social Security Administration (SSA) released its annual Medicare Trustees’ Report (the Report), earlier this month. The Report states that due to an improving economy, the Medicare and Social Security programs will run out of money later than last year’s annual report estimated. Still, the Report warns that both of these programs need to make policy changes if they are going to continue to be able to pay Americans the full benefits they have earned. 𝗠𝗲𝗱𝗶𝗰𝗮𝗿𝗲 is the federal health insurance program for people age 65+, and people under age 65 with certain severe disabilities and health conditions. In 2023, Medicare insured over 66 million people. Medicare was previously estimated to be out of money in 2031; the Report extends that date to 2036. It says this is due partly to higher payroll tax income collected in 2023, along with lower expenses than were anticipated. However, once Medicare’s trust fund reserves are gone, it will only be able to pay for 89% of fully insured Americans’ hospital visits, hospice care, nursing home stays, and in-home healthcare visits after their hospital stays. The 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 trust fund, which covers people age 62+ and those who are disabled, was originally calculated to run out of money in 2034; but the Report pushes that date to 2035. Once Social Security’s trust fund reserves run out, it will only be able to pay fully insured Americans 83% of the benefits they earned. Social Security Commissioner Martin O’Malley called the Report, “a measure of good news.” In fairness, he also said, “Congress still needs to act in order to avoid what is now forecast to be, in absence of their action, a 17% cut to people’s Social Security benefits.” Right now, approximately 71 million Americans receive Social Security benefits. The Congressional Budget Office says the reason our national debt keeps growing in relation to our GDP (gross domestic product) is that interest costs and spending for Medicare and Social Security are increasing because the average American lives longer. The Report projects Medicare income to be higher in 2024 than in 2023 because more workers are covered. Also, so far in 2024, average wages are higher, and expenses are lower. However, the decrease in expenses is mainly due to a change in the way Medicare Advantage healthcare plan rates are reported, together with reduced spending on inpatient hospital care and home health agency services. So, unfortunately, no matter how The Report tries to spin it, the bad news is that Medicare and Social Security are still going broke; they’re just going broke a bit more slowly.

‘No More Cuts To Social Care,’ Plea CAMPAIGERS have sent an impassioned plea to the Chancellor not to impose any further financial hardship on the care of older, vulnerable and disabled adults.The care provider body, The Independent Care Group (ICG), has sent an open letter to Rachel Reeves urging her to support rather than harm social care when she presents her Autumn Statement. Their plea comes amidst fears that the Government will not boost funding to local authorities for care but will increase employer National Insurance contributions, both of which would hit social care hard. “It isn’t too late,” said ICG Chair Mike Padgham. “The Chancellor must pull away from measures that will harm the care of the most vulnerable and support the social care sector instead. “The number of people living without the care they need has topped 2m for the first time but if the Chancellor doesn’t support us at the end of the month, things will get even worse.” In his letter to the Chancellor, Mr Padgham says the Government needs to increase rather than decrease the funding it gives to commissioners like local authorities to buy care from providers. And he warns that an increase in National Insurance would hit social care providers and be at odds with the Government’s desire to see more people looked after in their own home. He also argues that the Government must support social care if it is to succeed in its proposals to reform and improve the NHS. In the letter he says: “In particular, an increase in National Insurance payments for employers would hit social care providers particularly hard. Two thirds of our costs are on staffing and the sector is already under-staffed and struggling to recruit, with 131,000 vacancies in the sector. Adding another cost to employers would bring further pressure and might put some providers out of business. It would also be at odds with the Government’s desire to have more people looked after in their own homes. An increase in National Insurance would be particularly harsh on domiciliary care, which is very staff intensive.” And he adds: “We cannot start to ease hospital waiting lists and empty hospital beds if there is no social care to look after people in the community. We have to tackle the 2m people who currently cannot get care and the 131,000 vacancies in the sector, not to mention the lengthening list of care home closures.” Mr Padgham says there are sound economic as well as social and moral arguments for supporting social care. He adds in the letter: “The latest Skills for Care report revealed that social care now contributes £68.1bn to the England economy and employs 1.7m. That is a significant contribution, but it could contribute and employ considerably more if resources were switched from the NHS to support the sector. Skills for Care says an extra £6.1bn invested in social care would provide economic benefits of £10.7bn – for every £1 invested, a return of £1.75. Moving money from the NHS into social…

Social Security Wrestles With $63 Trillion in Unfunded Liabilities Findings complement other reports identifying the fiscal deterioration of Social Security. - Social Security is facing $63 trillion in long-term unfunded liabilities, according to the 2024 Old Age, Survivors, Disability Insurance (OASDI) trustees report. - The OASDI report assessed the infinite horizon unfunded obligation and a 75-year projection. The former highlighted a shortfall of $62.8 trillion, and the latter projected a deficit of nearly $23 trillion. - Officials say that the summarized deficits reflect annual cash-flow shortfalls in the years following the depletion of trust funds reserves. - OASDI trustees note that the shortfall could be eliminated if the combined payroll tax rate was raised to “about 17.0 percent” or if there were a “permanent reduction in benefits for all current and future beneficiaries by about 26.5 percent.” https://lnkd.in/gP-nPuri

"I keep hearing a lot about “socialism” these days, mainly from Donald Trump and Fox News, trying to scare Americans about initiatives like a Green New Deal, universal child care, free public higher education, and higher taxes on the super-wealthy to pay for these. Well, I’m here to ask you to ignore the scaremongering. First, these initiatives are overwhelmingly supported by most Americans. Second, for the last 85 years, conservative Republicans have been yelling “socialism” at every initiative designed to help most Americans. It was the scare word used by the Liberty League in 1935 when President Franklin D. Roosevelt proposed Social Security. In 1952, President Harry Truman noted that “Socialism is the epithet they have hurled at every advance the people have made in the last 20 years.” Truman went on to say: “Socialism is what they called public power … Social Security … bank deposit insurance ... free and independent labor organizations ... anything that helps all the people.” Truman concluded by noting, “When the Republican candidate inscribes the slogan ‘Down With Socialism’ … what he really means is, ‘Down with Progress.’” Third, if we don’t want to live in a survival-of-the-fittest society in which only the richest and most powerful can endure, government has to do three basic things: regulate corporations, provide social insurance against unforeseen hardships, and support public investments such as schools and public transportation. All of these require that we pool our resources for the common good. Regardless of whether this is called democratic socialism or enlightened capitalism, all are necessary for a decent society. Fourth and finally, America spends very little on social programs compared to other industrialized nations. As a result, almost 30 million Americans still lack health insurance, nearly 51 million households can’t afford basic monthly expenses including housing, food, child care, and transportation. And we’re the only industrialized nation without paid family leave. Most Americans who lose their jobs are not eligible for unemployment benefits. We provide less unemployment insurance than nearly every other advanced country. We’re also among the worst when it comes to reducing poverty, especially child poverty. Only 36 percent of Americans have government-subsidized health insurance. Other advanced countries provide better access to health care, and also better health care outcomes. Fewer than 30 percent of working Americans have access to paid family leave. Again, the contrast with other advanced nations is stark. Almost all their citizens get paid leave. And while people in most other countries get 3-5 weeks of paid vacation, Americans on average get only 11 days. We force young people to go deep into debt to finance their college educations. Most other advanced nations provide debt-free education. No, America doesn’t have socialism. We practice extreme capitalism."

𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐒𝐡𝐨𝐫𝐭𝐟𝐚𝐥𝐥 "𝑨𝒕 𝑻𝒉𝒆 𝑴𝒐𝒏𝒆𝒚" A dual-income couple with medium income could lose $16,500 annually starting in 2033 if, as projected, the Social Security Old-Age and Survivors Insurance (OASI) trust fund is depleted by 2033. A typical single-income couple would face a $12,400 nominal reduction in annual benefits. A dual-income couple with high lifetime earnings would see a loss of $21,800 a year. By law, the Trust Fund's depletion would call for a 21% across-the-board reduction in annual benefits. (A dual-income couple with medium income could lose $16,500 annually starting in 2033 if, as projected, the Social Security Old-Age and Survivors Insurance (OASI) trust fund is depleted by 2033. A typical single-income couple would face a $12,400 nominal reduction in annual benefits. A dual-income couple with high lifetime earnings would see a loss of $21,800 a year. By law, the Trust Fund's depletion would call for a 21% across-the-board reduction in annual benefits. (https://lnkd.in/dBY_nbKt ) as previously reported by the Social Security Trustees and Congressional Budget Office (CBO) Contact me to strategize an income gap plan. Hope it doesn't happen? This is not a plan.

🚨ICYMI: This isn’t good news. Social Security has been vulnerable for over two decades and all of these presidents didn’t give a shit. Democrats and Republicans have failed us, especially our elder and disabled populations. Personally, I am pissed, since I have been contributing to Social Security since I was 15. Run me my 💵💵💵💵💵💵💵 CLARITY: Social Security’s two trust funds have distinct projected depletion dates. The fund used to pay retired workers, their spouses and children, and survivors — formally known as the Old-Age and Survivors Insurance Trust Fund — is projected to last until 2033, which is unchanged from last year. At that time, 79% of those scheduled benefits *may* be payable. 🚨Hey, fellow Millennials and Gen Z: How much do you love having your money taken out of your paycheck for years and years to find out you likely won’t have access to most of it (and potentially ANY of it) when YOU retire? After paying the bills for all these Boomers & Gen X voting against your interests? 🫠 The fund used to pay disabled benefits — known as the Disability Insurance Trust Fund — will be able to pay full benefits until at least 2098, the last year of the projection period. Last I checked, disabled people will still exist after 2098. Currently, 6.2% of workers’ pay is taxed for Social Security, while an additional 1.45% is taxed for Medicare. The total 7.65% is typically matched by employers. High earners may have an additional 0.9% withheld for Medicare. About 40% of families who are 65 and older rely on Social Security for at least half of their income, and about 20% of families rely on it for all of their income. But we have billions to give away each year to Israel & other countries. Make it make sense. 📲https://lnkd.in/gngTZKTj

WASHINGTON (AP) — The go-broke dates for Medicare and Social Security have been pushed back as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday. Still, officials warn that policy changes are needed lest the programs become unable to pay full benefits to retiring Americans. Medicare’s go-broke date for its hospital insurance trust fund was pushed back five years to 2036 in the latest report, thanks in part to higher payroll tax income and lower-than-projected expenses from last year. Medicare is the federal government’s health insurance program that covers people age 65 and older and those with severe disabilities or illnesses. It covered more than 66 million people last year, with most being 65 and older. Once the fund’s reserves become depleted, Medicare would be able to cover only 89% of costs for patients’ hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. https://lnkd.in/d6cB8n74

WASHINGTON (AP) — The go-broke dates for Medicare and Social Security have been pushed back as an improving economy has contributed to changed projected depletion dates, according to the annual Social Security and Medicare trustees report Monday. Still, officials warn that policy changes are needed lest the programs become unable to pay full benefits to retiring Americans. Medicare’s go-broke date for its hospital insurance trust fund was pushed back five years to 2036 in the latest report, thanks in part to higher payroll tax income and lower-than-projected expenses from last year. Medicare is the federal government’s health insurance program that covers people age 65 and older and those with severe disabilities or illnesses. It covered more than 66 million people last year, with most being 65 and older. Once the fund’s reserves become depleted, Medicare would be able to cover only 89% of costs for patients’ hospital visits, hospice care and nursing home stays or home health care that follow hospital visits. https://lnkd.in/dbXuqmMb