On Tuesday May 12, 2009, officials who oversee the Social Security trust fund announced that they now foresee a Medicare shortfall by 2017, two years earlier than was predicted just last year. This same report also predicts a Social Security exhaustion by 2037, which is actually four years earlier than was predicted last year.
Officials went on to state that the main reason for the change in the forecast is the demand for benefits have increased while money paid in has decreased. The increase in benefits has been attributed to growing unemployment and new tax breaks in the economic stimulus package that was passed earlier this year.
The release of this report gives a clear indication as to why the Center for Medicare and Medicaid Services (CMS) will require mandatory insurer reporting. It has become increasingly evident that the stress currently placed on our Social Security and Medicare systems by recent economic developments has brought about the need for this change.
To view this report in its entirety, please click here.