WASHINGTON — The financial protections that millions of older Americans depend on will lack funds to pay full benefits over the next decade, according to a Social Security and Medicare report released Friday.
Medicare, the federal health insurer that covers 65 million elderly and disabled beneficiaries, will no longer pay full benefits for patients staying in hospitals and nursing homes starting in 2031, the report said.
And in 2033 Social Security won’t have enough money to meet full pension payments for its 66 million beneficiaries.
The report is a nod to politicians to address the weak state of social programs, which are expected to become more expensive in coming years as more Americans age and qualify for retirement.
“Members of Social Security and Medicare continue to recommend that Congress reconsider the projected decline in these funds to gradually implement the necessary changes,” said Social Security Commissioner Kilolo Kijakasi.
Friday’s report was a mix of good and bad news: The forecast for when Medicare will run out of funds has been extended three years since last year’s report predicted the government would run out of funds to pay benefits by 2028.
But the date for Social Security moved forward a year.