THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY & MEDICARE
~ Trusted ~ Independent ~ Effective ~

May 13, 2011

NEWS RELEASE

"It's important Americans understand the 2011 Trustees Report confirms that Social Security and Medicare continue to fulfill their mission, providing retirement and health security to millions still suffering during the worst economic crisis of a generation.  Beyond the doom-and-gloom news headlines and calls to cut these programs in order to 'save' them, the fiscal facts in this annual report show that Social Security has a $2.6 trillion surplus which continues to grow.  While healthcare reform has extended the solvency of the Medicare Trust Fund, the economic recession and high healthcare costs continue to take their toll. The bottom line is Social Security is not in crisis and further reforms to our healthcare system are necessary to bring down costs nationwide, not just in Medicare." Max Richtman, Executive Vice President/Acting CEO

 2011 Social Security and Medicare Trustees Report

The 2011 Trustees report shows Social Security is not facing a crisis.  

• Trustees project Social Security will be able to pay full benefits until the year 2036 .  After that, Social Security will have sufficient revenue to pay about 77% of benefits. 
• Social Security is still well funded.  In 2011, when the economy struggled to regain its footing, Social Security's total income still exceeded its expenses by $68 billion . In fact, the Trustees estimate that total annual income will exceed program obligations until 2025. 
• Beneficiaries will likely see a very small Cost of Living Allowance increase of .7% in 2012, meaning that for the third year in a row millions of seniors will see their Medicare premium hikes outpace their COLA.

The 2011 Trustees report shows the continuing weak economy, reduced payroll taxes, and diminished wage growth continue to impact Medicare's Trust Fund. 

• While Medicare solvency is still greatly improved thanks to passage of healthcare reform, lower payroll tax revenues have shortened solvency to 2024. This adjustment mirrors what we've seen in previous recessions. While health care reform was a vital first step, it's clear the work is not finished.

Congress must continue to address long-range cost containment to avoid creating provider access problems and increased out-of-pocket costs for Medicare beneficiaries.  Our focus should be on rebuilding our struggling economy and putting Americans back to work to ensure America's vital safety-net programs continue to thrive and provide the stability and security that Americans depend on in good times and bad.

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