Social Security will pay out more this year than it gets in payroll taxes, marking the first time since the program will be in the red since it was overhauled in 1983, according to the annual authoritative report released Thursday by the program’s actuary.
Meanwhile President Obama‘s health care overhaul has given Medicare‘s basic Hospital Insurance an extra 12 years of financial stability, though it did not solve all of the program’s long-term challenges.
“The financial status of the HI trust fund is substantially improved by the lower expenditures and additional tax revenues instituted by the Affordable Care Act,” the program’s actuary said in its annual report. “These changes are estimated to postpone the exhaustion of HI trust fund assets from 2017 under the prior law to 2029 under current law and to 2028 under the alternative scenario.”
But the actuary said the programs’ finances are still troubled in the near and long terms, and warned that Congress is making things worse by putting off scheduled doctor fee cuts.