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SOCIAL SECURITY: Medicare and Social Security Facing Future Deficits

May 13, 2011

Washington – Two of the biggest federal entitlement programs are now facing a gloomy financial outlook 13 to 25 years from now, a federal government report said.

 

According to the report, Medicare and Social Security are both projected to have deficits by the years 2024 and 2036 respectively, earlier than last year’s assessments.

The rising costs of healthcare and the difficulty providing it to elderly citizens are pointed out as the cause of Medicare’s financial woes.

Social Security, on the other hand, reports of a disproportionately lower tax collection over the amount it releases for benefits, which may result to the looming bankruptcy if adjustments are not made.

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