Social Security and Medicare News - Second Quarter 2018

On June 5, 2018, the Social Security and Medicare Trustees issued updated reports on the trust fund status for these programs. The reports are Social Security Old-Age, Survivors, and Disability Insurance (OASDI) and the other is on Medicare Part A, Hospital Insurance (HI), and Medicare Parts B and D, Supplementary Medical Insurance (SMI).

A key projection from the Social Security report is that trust fund reserves that have been saving up through the years will be gone in 2034, with 79% of benefits payable at that time. With the reserves gone, payroll taxes will be the only source for benefit payments.

Other highlights from the report

• The Disability Insurance (DI) depletion date is extended until 2032. DI’s outlook has improved because of declining applications and lower average benefits.
• The projection for Medicare Part A Hospital Insurance (HI) is that it will remain solvent until 2026 with the ability to pay 91% of costs.

In addition, they provided estimates for 2019, which include:

• 2.4% cost-of-living adjustment (COLA)
• $132,300 Social Security maximum table earnings
• $1,376 Part A inpatient deductible per benefit period
• $185 Part B annual deductible
• $35.52 part D (Prescription Drug Coverage) monthly premium

To learn more, View Mercer’s free Social Security and Medicare Newsletter that summarizes the relevant information in these reports including a handy table comparing the 2018 figures to the estimated 2019 figures.

More on Social Security and Medicare from Mercer here.