Medicare increasingly will become more expensive, and eventually surpass the cost of Social Security, according to a new report from the boards of trustees for Medicare and Social Security.
By 2083, a total of 11.4% of the Gross Domestic Product will be spent on Medicare, Kiplinger, which publishes business forecasts and personal financial advice, reported. That is nearly twice the amount spent on Social Security. Medicare helps to fund nursing home costs and often compensates for Medicaid underfunding, according to nursing home advocates.
Meanwhile, Social Security’s trust fund is projected to run out by 2037, according to its trustees in the report. That is four years earlier than they predicted last year. When the fund runs out, the program won’t be bankrupt, but it will only be able to pay out about three-quarters of its funding obligations, Kiplinger reported.
