On July 22, the Social Security (SS) and Medicare Boards of Trustees published their 2015 report, providing their current and projected financial program status. Of the many trust funds managed by the Social Security Administration, the Disability Insurance (DI) Trust Fund faces the distinct possibility of reserve depletion by late next year. In fact, both organizations as a whole cannot continue under their current financial scheduling.
The SSDI program has cost more than its non-interest income has generated since 2005 and will shortly be unable to meet their payment commitments. Additionally, their trust fund ratio (which are their reserves expressed as a percentage of annual costs) has continued to fall every year since 2003. The SS Retirement Trust Fund will be completely depleted of its reserves by 2035. Then, and only because of payroll taxes, they will be able to meet just 75% of benefit payments.
It is estimated that Medicare’s Hospital Insurance Program, which enrolled 1.6 million more people last year compared with previously, will only be able to pay out benefits through 2030. According to the Wall Street Journal, Social Security, “designed as a pay-as-you-go program,” has paid out more in benefits than it has collected in taxes since 2010.
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