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Op-ed urges means testing and Medicare coverage limits to curb costs
The op-ed says Social Security and Medicare face projected insolvency in 2032 and 2033, and inaction could trigger about 25% Social Security cuts and roughly 10% Medicare cuts.
HousingWire highlights a Washington Post editorial board proposal aimed at slowing the long run cost growth of Social Security and Medicare as both programs move toward projected insolvency.
The editorial board says the Social Security trust fund is projected to become insolvent in 2032, with Medicare’s hospital insurance fund following in 2033. It warns that if Congress does nothing, insolvency could mean cuts of roughly 10% across the board for Medicare and 25% for Social Security.
For Social Security, the board calls for shifting toward a more targeted retirement structure, including a tax funded benefit as a basic floor and means testing to direct more support to those who need it most. It also argues the system should move more retirees toward compulsory private savings, noting that retirement accounts are the largest source of household wealth and that more than one third of Social Security benefits go to seniors with incomes above $100,000.
For Medicare, the op-ed argues the fiscal challenge is larger because costs are expected to take a growing share of the economy. It proposes constraining spending growth by limiting the addition of new treatment services to the program, while raising premiums for wealthier seniors.