Tuesday
May122009
The Clock Is Ticking For U.S. Social Security
By Jonathan Bronstein, Talk Radio News Service
The recent release of the Social Security Board of Trustees report illuminated the dire straits that these two bastions of liberal democracy, Medicare and Social Security, are in, as they are to run out of money much sooner than expected.
“This year’s trust Social Security Report projects that the Trust Fund will be exhausted in 2037, four years earlier than the Trustees report last year,” said Secretary of Treasury Timothy Geithner at a press conference, in which he addressed the future of this program.
But these two entitlement programs will be consuming a disproportionately large amount America’s GDP in the near future, and need to be reformed now to stave off their demise, according to the report.
The main problem with these programs is that they are too expensive and will consume a disproportionately large part of America’s GDP.
“Medicare’s annual costs were 3.2 percent of GDP in 2008, or nearly three-quarters of Social Security’s,” said Geithner, “but are projected to surpass Social Security expenditures in 2028 and to reach 11.4 percent of GDP in 2083, compared with 5.9 percent of Social Security.”
As a result, Geithner stated that “the sooner action is taken the more options for reform will be available and the fairer reforms will be to our children and grandchildren.”
Some of the steps Geithner proposed involved lessening healthcare costs, which President Obama recently did by negotiating a $2 trillion reduction in costs, rehabilitating the economy so that more taxes can be placed into the fund, and to reform Social Security in a "responsible and bipartisan" manner.
Health and Human Services Secretary Kathleen Sebelius echoed Geithner’s need for reform. “The (Social Security Trustees) report was not a government report, but a wake up call,” said Sebelius.
Sebelius bluntly stated that the Medicare fund is spending more than it takes in, and uses assets accrued in the past to make-up the difference, but all of these excess assets will be exhausted by 2017.
Both Geithner and Sebelius stressed that reform of these two entitlement program need reform, and that the Obama Administration is dedicated to making this important change.
“Reform cannot wait,” said Sebelius.
But this change cannot come soon enough for Social Security and Medicare because the longer it takes for change, the more radically different the form will take, according to Geithner.
The recent release of the Social Security Board of Trustees report illuminated the dire straits that these two bastions of liberal democracy, Medicare and Social Security, are in, as they are to run out of money much sooner than expected.
“This year’s trust Social Security Report projects that the Trust Fund will be exhausted in 2037, four years earlier than the Trustees report last year,” said Secretary of Treasury Timothy Geithner at a press conference, in which he addressed the future of this program.
But these two entitlement programs will be consuming a disproportionately large amount America’s GDP in the near future, and need to be reformed now to stave off their demise, according to the report.
The main problem with these programs is that they are too expensive and will consume a disproportionately large part of America’s GDP.
“Medicare’s annual costs were 3.2 percent of GDP in 2008, or nearly three-quarters of Social Security’s,” said Geithner, “but are projected to surpass Social Security expenditures in 2028 and to reach 11.4 percent of GDP in 2083, compared with 5.9 percent of Social Security.”
As a result, Geithner stated that “the sooner action is taken the more options for reform will be available and the fairer reforms will be to our children and grandchildren.”
Some of the steps Geithner proposed involved lessening healthcare costs, which President Obama recently did by negotiating a $2 trillion reduction in costs, rehabilitating the economy so that more taxes can be placed into the fund, and to reform Social Security in a "responsible and bipartisan" manner.
Health and Human Services Secretary Kathleen Sebelius echoed Geithner’s need for reform. “The (Social Security Trustees) report was not a government report, but a wake up call,” said Sebelius.
Sebelius bluntly stated that the Medicare fund is spending more than it takes in, and uses assets accrued in the past to make-up the difference, but all of these excess assets will be exhausted by 2017.
Both Geithner and Sebelius stressed that reform of these two entitlement program need reform, and that the Obama Administration is dedicated to making this important change.
“Reform cannot wait,” said Sebelius.
But this change cannot come soon enough for Social Security and Medicare because the longer it takes for change, the more radically different the form will take, according to Geithner.
tagged Geithner, obama, sebelius, social security in Frontpage 2
$500 Million Of Stimulus Funds Spent On Community Health Care
In its first 100 days, $500 million of the $787 American Recovery and Reinvestment Act has been allocated to improve and expand the operations of Community Health Centers across the country. The allocation of the funds was praised today by Kathleen Sebelius, Secretary of Health and Human Services.
"The Recovery Act grants and the funding we have released are key investments that will help deliver care to millions of Americans," said Sebelius during a telephone conference with reporters.
An additional $300 million is set to be alloted toward the National Health Service Corps, a segment of HHS, with the goal of increasing the available workforce in Community Health Centers across the Country. HHS expects the amount of available clinicians to double by 2011.
$2 billion was initially provided by ARRA to be spent on Community Health Centers over the next two years. The remaining funds will go toward updating medical technology, renovating equipment and constructing additional centers.