Possible upcoming changes to Medicare and Social Security

[BruceR155585]

It seems the incoming administration is thinking about making major changes to Medicare and Social Security. I wonder what people are thinking about this, specifically, significant reductions in coverage and benefits. What are our options? Any thoughts you may have on how to deal with what might be disastrous for many of us on fixed incomes would be welcome.

Thanks

[GailL1]

@BruceR155585 

Not really sure what your comments are referring to since you didn’t get specific so I am just giving you some news of the day - 

ABC News - 01/07/2025 - Johnson says no cuts to Social Security and Medicare to fund Trump's agenda 

But we also have to think about the shortfall that we are headed for as the SS Trustees have warned us about for years and years.  So when those Trust Funds get to a certain level, the law requires that something has to be done.  So currently, that doomsday date is about 2030 - so if we don’t get fix the Trust Funds by then - everybody gets an automatic cut in benefits - for Social Security that figure is about 20 - 25%.  

Here is the Summary of the 2024 Trustee Report for your reading enjoyment. 

Here are some highlights from the Summary letter  [copy/paste from the above link]

Based on our best estimates, this year's reports show that:

• The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year's report. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 79 percent of scheduled benefits.

The Hospital Insurance (HI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2036, 5 years later than reported last year. At that point, that fund's reserves will become depleted and continuing program income will be sufficient to pay 89 percent of total scheduled benefits.

.. . . . Lawmakers have many options for changes that would reduce or eliminate the long-term financing shortfalls. Taking action sooner rather than later will allow consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.

[BruceR155585]

Thanks for that. I'm just concerned about what might happen given the talk coming from people associated with the new administration.

[BalbonisMoleskine]

If you're on SS, you are not on a fixed income. Period. Full stop. You get a COLA. Sure, it might not be as much as you need or would like, but how many working people get a raise that's as much as they need or would like? They're dealing with inflation, just like retirees.  

The reality is that everyone depending on SS and Medicare is going to have to accept less, from retirees to doctors. There simply aren't enough workers willing and able to pay even more in payroll taxes to sustain the current system. 

[BruceR155585]

Tim,

Thanks for your reply.

What I was asking for are some strategies for dealing with the possible cuts in benefits. Suck it up is not much of a strategy. 

I'm aware of COLA. I know that SS is in financial trouble. I'm not asking workers to put in more than I did.

There are adjustments to the federal budget that could make for a more equitable distribution of funds. I'm not holding my breath waiting for this to happen.

Therefore I am asking for realistic ideas on how to deal with what appears to be on the horizon. I'm not asking for a civics lesson.

But, again, thanks for taking the time to reply.

Bruce