People receiving Social Security and Medicare need to prepare for drastic changes. Social Security and Medicare in unity has been around since 1965. President Lyndon B. Johnson decided to help the elderly pay for expensive medical necessities from doctor visits to medicine. President Johnson knew that elderly individuals would have less income and pay more for medical necessities than younger individuals. He made Social Security and Medicare a number one priority during his presidency, unaware years down the line funding would become scarce and so many doctors and pharmaceutical companies would try to squeeze the life out of it.
Through the years doctors’ and pharmaceutical companies have become greedy. Doctors diagnose patients, prescribe medications, and send them to pharmaceutical companies that charge high prices for medications that help maintain their well-being. Although over half of our elderly individuals with Social Security and Medicare benefits are already struggling to accommodate their daily living. Therefore a reform of both Social Security and Medicare needs to take place before it is too late. Social Security and Medicare funding is actually not one of the uttermost important problems that America will face in the coming decade.
America is fortunate to have benefits available for retirees, the disabled, survivors, and dependents. The Obamacare administration is currently performing necessary changes to the Social Security and Medicare program to prevent further damage and demise for upcoming seniors. It is a prediction that between the years of 2021-2033 the funds will depleted for these programs. The Office of Chief Actuary of Social Security uncertain if changes will be made performs a guess estimate saying, “In 2021, cash would come from increased taxes, Federal spending reduction, or borrowing the fund from the treasury”, which increases the deficit greatly. For example, the benefits are made up of taxes taken from the working class people and distributed by a circular calculations based upon the cost of living. In Joseph and Dorothy Matthews book Social Security, Medicare & Government Pensions they point out the different obstacles funding these programs will face:
Social Security is facing pressure to lower benefits… due to longer life-spans, an overall population increase …the Baby Boomers beginning to reach retirement age, and the increase in the number of people receiving Social Security and Medicare benefits. If the system continues as-is, the total benefits will eventually surpass the amount of taxes paid into the system by younger workers. If the system is not altered at some point full benefits will not be paid as promised. (13)
Furthermore, in a decade Social Security recipients will face further denial of benefits, whether they are eligible or not due to the decrease of funding payouts. While currently eligible recipients fall short of receiving benefits and hire attorneys to battle for their money’s. Within a...