Story perspectives
Medicare, Social Security Facing Major Cuts by 2033
6/19/2025
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Story summary
- Social Security and Medicare trust funds are depleting faster due to rising health care costs and new retirement laws.
- Medicare's Hospital Trust Fund will cover benefits fully until 2033, then decrease to 89%.
- Social Security may see a 23% benefit cut starting in 2033 without congressional intervention.
- Proposed solutions involve increasing payroll taxes or reducing benefits for long-term stability.
- Recent legislation signed by former President Biden adds $196 billion in costs over ten years.
