Question

Research the current debates from the past 6 months about Social Security and Medicare. Identify one issue in the Social Security or Medicare debate and discuss two changes that would help address the issue you have identified.

this is for us goverment. class

Answer 1

Social security is a type of social insurance in the United States which guarantees that American citizens of a old age and disability are entitled to financial assistance as a social right. Funding for social security actually comes from a payroll tax, which is shared in an equal proportion by the employer and employee. Medicare is considered to be a part of the Social Security program as per which Individuals are eligible for Hospital Insurance when they reach age 65, provided that they are also eligible for monthly Social Security benefits.

A major issue which is highlighted in the social security system in the recent time is its influence on economic growth, and the equity of the system for various participants. This is because the U.S. social security system is a “pay-as-you-go” system which implies that workers and employers pay from their taxes for the current social security and Medicare benefits of former or retired workers. Thus, The sustainability of the system can become an issue with the increase in the proportion of the Baby Boomer generation entering the age of retirement which put greater burden on the current worker generation to finance.

This has brought the Medicare programme or the Obamacare as it has come to be known in the recent time , under sharp criticism specially by the Conservatives. The Medicare trust fund is projected to go bankrupt in 2026. Two possible ways to resolve the issue is firstly to increase the eligibility age for social security and secondly to trim down both Social Security and Medicare benefits for the wealthiest half of retirees. Low-income seniors would see no cuts.These measures would help to keep a balance between the taxes paid by young workers and the Senior retirees who receive benefits without the latter acquiring benefits which are far exceeding their lifetime contributions to the programs.