The problem is one of cost – the cost of Social Security and Medicare is rising and will increase this decade and continue rising at least through 2050.
We spent $5,124 per US person on Social Security and Medicare in 2019 – that number will increase by about $2,200 (in 2019 dollars) – to about $7,300 – per US person in 2030.
Medicaid cost pressures are no different.
There are three factors that, in combination, cause the problem:
US social programs masquerade as ‘funded’ plans: they are not
Benefits are paid from current taxes
There are no national savings for our collective old age
The US is aging: the proportion of the population who are seniors (70+) increases 60% – 2030 vs. 2010
7 working age (20-69) to 1 retired age (70+) person in 2010; 4 in 2030
Healthcare costs (so Medicare costs) grow faster than the economy
Per Medicare enrollee cost expected to increase by 27% (constant dollars) in the next 10 years through 2030
Yes: there are always solutions, but most of them are difficult and finding a way forward requires tough crunchy choices and leadership.
Here are some:
Or a mixture of all 5
In sufficient dosage, all of these remedies work: most of them require time – perhaps a generation – to action. What is the plan?
Social programs – how to fix them
