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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (June 6, 2018)
NATION/WORLD Wednesday, June 6, 2018 Medicare fi nances getting worse By RICARDO ALONSO- ZALDIVAR and ANDREW TAYLOR Associated Press WASHINGTON — Medicare will run out of money sooner than expected, and Social Security’s fi nan- cial problems can’t be ignored either, the gov- ernment said Tuesday in a sobering checkup on pro- grams vital to the middle class. The report from program trustees says Medicare will become insolvent in 2026 — three years earlier than previ- ously forecast. Its giant trust fund for inpatient care won’t be able to fully cover pro- jected medical bills starting at that point. The report says Social Security will become insol- vent in 2034 — no change from the projection last year. The warning serves as a reminder of major issues left to languish while Washing- ton plunges deeper into par- tisan strife. Because of the deterioration in Medicare’s fi nances, offi cials said the Trump administration will be required by law to send Congress a plan next year to address the problems, after the president’s budget is submitted. Treasury Secretary Ste- ven Mnuchin said in a state- ment that there’s time to fi x the problems. “The programs remain secure,” Mnuchin said. Medicare “is on track to AP Photo/Patrick Semansky, File The Social Security Administration’s main campus in Woodlawn, Md. meet its obligations to ben- efi ciaries well into the next decade.” “However, certain long- term issues persist,” the statement added. “Lack-lus- ter economic growth in pre- vious years, coupled with an aging population, has con- tributed to the projected shortages for both Social Security and Medicare.” Social Security recipi- ents are likely to see a cost of living increase of about 2.4 percent next year, said government number-crunch- ers who produced the report. That works out to about $31 a month. At the same time, the monthly Medicare “Part B” premium for outpatient care paid by most benefi ciaries is projected to rise by about $1.50, to $135.50. Both the cost-of-living increase and the Medicare outpatient premium are not offi cially determined until later in the year, and the ini- tial projections can change. More than 62 million retirees, disabled workers, spouses and surviving chil- dren receive Social Secu- rity benefi ts. The average monthly payment is $1,294 for all benefi ciaries. Medi- care provides health insur- ance for about 60 million people, most of whom are age 65 or older. Together the two pro- grams have been credited with dramatically reduc- ing poverty among older people and extending life expectancy for Americans. Financed with payroll taxes collected from workers and employers, Social Security and Medicare account for about 40 percent of govern- ment spending, excluding interest on the federal debt. But demands on both programs are increasing as America ages. Unless lawmakers act, both programs face the pros- pect of being unable to cover the full cost of promised benefi ts. With Social Secu- rity that could mean sharply reduced payments for retir- ees, many of whom are already on tight budgets. The report said the total annual cost of Social Security is pro- jected to exceed total annual income in 2018 for the fi rst time since the Reagan era, meaning the program will have to tap into reserves. East Oregonian Page 7A Democrats hope for big push from 8-state primary night LOS ANGELES (AP) — Holding hopes of a “blue wave” in November, Dem- ocrats fought to shape the political battlefi eld in prima- ries across eight states Tues- day, none more important than California and New Jer- sey where control of Congress may well be decided this fall. In New Jersey, Mikie Sher- rill, a former federal prosecu- tor and Navy pilot and now the Democratic establish- ment favorite, bested a fi eld of party rivals in the race to replace retiring Republican Rep. Rodney Frelinghuysen. She’ll take on GOP Assem- blyman Jay Webber in one of several races Democrats view as prime opportunities in their effort to retake the House. Democrats need to pick up 23 seats to seize control of the House in November. Part of their path is likely to run through southern Cal- ifornia, where the winners and losers in several of the most competitive races may take days to sort out given the state’s unusual election laws. The state’s primary system offered potential nightmare scenarios for both parties. Between California and New Jersey, Democrats were get- ting a glimpse of whether their much-discussed momentum and enthusiasm were holding. Signifi cant contests also played out elsewhere on Tuesday. Mississippi Republican Sen. Roger Wicker won his primary contest as did New Jersey Sen. Bob Menendez, a Democrat who faced federal bribery charges last year. The jury deadlocked, but Repub- licans hope to use Menen- dez’s legal troubles to tar other Democrats like Sherrill across the state. Democratic California Sen. Dianne Feinstein won renomination, although it was unclear whether she’ll face a Republican or a Democrat in November. Much of the day’s drama focused on women, who fought to make history in some cases and to avoid disas- ter in others. In Alabama, four-term Republican Rep. Martha Roby was forced into a runoff election next month after fail- ing to win 50 percent of her party’s vote. She will face for- mer Democratic Rep. Bobby Bright in Alabama’s conser- vative 2nd district — where Trump loyalty has been a cen- tral issue. Roby was the fi rst member of Congress to withdraw her endorsement of the Repub- lican president in 2016 after he was caught on video brag- ging about grabbing women’s genitals. 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