The trustees of the Medicare and Social Security trust funds released their annual report and the news was not good because shortfalls will come in eight years. However, it can be fixed because the main problem is uncontrolled healthcare cost increases, says CEPR’s Dean Baker.
Medicare will become insolvent in 2026. That’s the headline that the Associated Press used for its story on the Social Security and Medicare trustees annual report that was released on Tuesday. But will it be insolvent? And how serious is the situation with Social Security? Will it fail, too?