Lubbock Times

WASHINGTON, D.C. – Yesterday, House Budget Committee Chairman Jodey Arrington (R-TX) and members of the Committee held an oversight hearing entitled “Medicare and Social Security: Examining Solvency and Impacts on the Federal Budget.”

This was the first time since 2012 that the chief actuaries for the Centers for Medicare and Medicaid Services (CMS) and the Social Security Administration (SSA) testified together to Congress. This was also the first time the current chief actuary for CMS testified to any committee. The hearing represents a step toward enforcing oversight of government spending programs and addressing concerns over the looming insolvency of Medicare and Social Security.

The Social Security Board of Trustees projects that the Social Security Old-Age and Survivors Insurance (OASI) trust fund will become insolvent in 2033. The Medicare Board of Trustees projects that the Medicare Hospital Insurance (HI) Trust Fund, out of which Part A benefits for inpatient care are paid, will become insolvent in 2036.

Chairman Jodey Arrington remarked, “This is why we also did something that was unprecedented in a decade. We passed a bipartisan commission that would have knuckleheads from both sides of the aisle, thoughtful leaders, in a bipartisan way, to look at two of the most important programs for our seniors. Retirement security and health care security have 60+ million people today counting on it, 10,000 people a day counting on it. My prayer is we unite, not as Republicans not as Democrats, but as Americans.”

Rep. Lloyd Smucker added his perspective during questioning: “We all want to work to ensure that the promise of Social Security and Medicare for the people who have been paying into these systems; we want those promises to be kept. But we also know that structurally going forward if changes aren't made, we won't be able to do that.”

Rep. Glenn Grothman questioned how healthcare spending per person is increasing relative to inflation: "How is healthcare spending per person going up relative to inflation?" Mr. Paul Spitalnic responded by noting projections indicate those per capita costs will increase at a faster rate because healthcare costs tend to rise faster than other sectors.

Rep. Ron Estes expressed concern about potential benefit cuts: "My concern is that if nothing's done, somebody who's currently getting a $1,000 check a month is going to have their check cut to $790 if it's a 79% payable right? If nothing changes between now and then."

If Congress continues without action, trust funds for Social Security and Medicare will be depleted by 2033 and 2036 respectively. Current retirees may face significant cuts with potential reductions of up to 21 percent in Social Security benefits and an 11 percent cut in Medicare Part A benefits.

The House Budget Committee’s Fiscal Year (FY) 2025 Budget makes no changes to Social Security or Medicare benefits while supporting the creation of a fiscal commission aimed at helping Congress and the President save these programs for future beneficiaries.

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