What's New in Social Security and Medicare Funding?

According to the Social Security Office's Summary of the 2023 Annual Reports, the Hospital Insurance (HI) Trust Fund, or Medicare Part A, which helps pay for services such as inpatient hospital care, "will be able to pay...scheduled benefits until 2031...At that point, the fund's reserves will become depleted and continuing program income will be sufficient to pay 89 percent of total scheduled benefits." While this may seem troubling, no major changes or reductions in Social Security or Medicare benefits have been announced for the near future.

If you're a Medicare beneficiary, you've come to the right place. MedicareMarket.com has the information, tools, and resources you need to make smart decisions about insurance. But first, let's learn more about Social Security and Medicare...

Social Security

Social Security refers to the social programs under the Social Security Act (1935) and its amendments. Social Security is a large set of programs meant to assist Americans, particularly in the aspect of finances. Social Security programs include Federal Old-Age, Survivors, and Disability Insurance (OASDI), Health Insurance for the Aged and Disabled (Medicare), Temporary Assistance for Needy Families(TANF), Grants to States for Medical Assistance Programs for low income citizens (Medicaid), State Children's Health Insurance Program for low income citizens (SCHIP), and Supplemental Security Income (SSI), among others. The two largest are Medicare and OASDI.

Medicare

Medicare is a national social insurance program. Medicare provides health insurance for people 65 years and older who have paid into the system. It also provides health insurance to younger people with disabilities, end stage renal disease (ESRD), and amyotrophic lateral sclerosis (ALS). Medicare consists of Part A: Hospital Insurance, Part B: Medical Insurance, Part C: Medicare Advantage plans, Part D: Prescription drug plans. Most people will get Part A for free and pay a premium for Part B. Medicare Advantage is an alternative way to get your Medicare Part A and Part B coverage and usually provide additional coverage, but the services are only available within a given provider network. Some Medicare Advantage plans allow patients to go put of network for a higher cost. Medicare Part D is the prescription drug coverage. Even if you don’t take prescription drugs now, you might consider getting Medicare prescription drug coverage if you anticipate needing new prescription(s) in the near future. This is optional and is offered to everyone in Medicare.

OASDI

OASDI is short for the Social Security's Old-Age, Survivors, and Disability Insurance. OASDI is the largest program within Social Security and it is what most people think of as "social security". This program pays monthly retirement benefits to retired workers aged 62 or older who have paid into the system as a form of social insurance to ensure retirees do not have to retire in relative poverty. The three most important factors that affect social security benefits are 1. Retirement Age 2. Work History and 3. Working while Taking Benefits. In addition to retirees, OASDI also provides monthly benefits to eligible disabled workers and survivors of insured workers.

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