Dismal Outlook for Social Security and Medicare1
The Obama administration is reporting a dismal outlook for Social Security and an unsustainable future for Medicare, the national social insurance program that is administered by the United States federal government in order to guarantee access to health insurance to all Americans age 65 and older as well as younger citizens with disabilities.
Medicare over the years has faced many medical revenue cycle management challenges due to increasing costs of overall health care and increased enrollment numbers at the U.S. population ages. In fact, according to a U.S. Census Bureau report total Medicare spending is estimated to increase from $523 billion in 2010 to $932 billion by 2020.
In Washington, the Obama administration has projected that the social security trust fund will be exhausted in 2033, about three years earlier than was projected last year. They are predicted that the Medicare hospital insurance trust fund will be depleted by 2024. This estimate has not changed since last year. Such news can be very worrying and unsettling for U.S. citizens hoping to retire during those years.
The core message from Washington was that these two heavily relied upon programs are not sustainable as they are currently operating and designed. Something has to be changed and soon whether it is in the healthcare revenue cycle management or the way the entire system is operated.