Despite being the oldest American president in history, Joe Biden has shown a distinct lack of interest in caring for America’s seniors. His budget included virtually no reforms to Social Security and Medicare programs that face growing financial shortfalls.
Over the past year, Medicare and Social Security’s financial situation may have deteriorated further. COVID-19-related lockdowns and the unemployment they generated likely reduced the payroll tax revenue that funds both programs. But because the trustees for the two programs have delayed the release of their annual reports, we don’t yet know the full extent of the damage to Medicare and Social Security post-pandemic.
Amid these looming, and likely growing, fiscal crises, what reforms did the Biden budget propose? Practically none. In 1,740 pages of documents — the budget itself, an appendix, and a volume of analytical perspectives — the administration used the word “solvency” regarding Medicare and Social Security not at all.
Both Medicare and Social Security present fiscal problems that in time few politicians will be able to ignore. Prior to COVID-19, program actuaries projected Medicare and Social Security’s collective shortfall at $65.4 trillion, or roughly 4.4% of GDP. More realistic assumptions regarding provider reimbursements would raise Medicare’s projected shortfall by trillions more.
