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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