Social Security, Medicare Funds Expected Shortfall by 2033-34

Recent reports reveal that the Social Security and Medicare trust funds are projected to run short of funds to pay full benefits by 2033, earlier than previously expected due to rising healthcare costs and recent legislation increasing Social Security benefits. After depletion, Social Security benefits are estimated to be paid at 81 percent of promised levels, and Medicare would cover 89 percent of hospital costs, significantly impacting millions of beneficiaries. Frank Bisignano, appointed by President Trump as Commissioner of the Social Security Administration (SSA), aims to modernize the agency by incorporating artificial intelligence to manage workload and has halted further workforce reductions amid current low staffing levels. Additionally, the SSA is transitioning from paper checks to digital payments by September 30, 2025, following an executive order from President Trump aimed at reducing costs, delays, and fraud risks associated with paper payments. The trustees emphasize the urgent need for legislative action to address the financial shortfall to minimize adverse effects on beneficiaries, providers, and taxpayers. Despite longstanding political challenges, the current administration maintains the financial status of these programs as a top priority, seeking to sustain benefits without cuts.