Grassley Comments on Annual Report

Grassley Comments on Annual Report

Today the Social Security and Medicare Boards of Trustees released their annual report on the financial status of the two programs. The report shows that Medicare Hospital Insurance, which pays for inpatient hospital expenses, is projected to be able to pay benefits until 2023, eight years longer than projected in last year's report. Social Security is projected to be adequately financed three years longer than in last year's report, until 2037.

Sen. Chuck Grassley (R-Iowa), chairman of the Special Committee on Aging, made the following comment about the report.

"Some people are rushing to proclaim Social Security and Medicare as financially sound. I'd like to pour cold water on that idea. Of course the great economy is a blessing, but it can't accommodate the greatest demographic shift in the nation's history. In a few short years, baby boomers will begin to retire. They'll collect Social Security benefits and use Medicare coverage in record numbers. Today's good economy can't match tomorrow's retirement boom.

"Just this week, Alan Greenspan testified before my Committee and sounded a note of caution about rushing to shore up Social Security and Medicare with income taxes. I'd like to echo his note of caution about spending sprees. We should use this flush financial period to save Social Security and Medicare with substantive changes. We have to make hay while the sun shines."