Social Security and Medicare: An Analysis of Current and Future States

This research paper provides a comprehensive overview of the Social Security and Medicare programs. It begins with the history of Social Security, tracing its origins to the Social Security Act of 1935 and its evolution, including the development of survivor and disability benefits. The paper then details the current configuration of the program, explaining how it is funded through payroll taxes and outlining the benefits provided, such as retirement, survivor, and disability benefits. It also explores the projections for the future of the program, highlighting potential challenges such as the depletion of trust funds and the impact of an aging population. The paper also covers the history of Medicare, starting with its establishment in 1965, and discusses the evolution of the program, including the addition of Part D for prescription drug coverage and Part C for Medicare Advantage plans. It then outlines the current configuration of Medicare, including Parts A and B, and explains the benefits covered. Finally, it examines projections for the future of Medicare, addressing challenges such as rising healthcare costs and an aging population. The conclusion summarizes the key findings and emphasizes the importance of these programs.

Research Paper

Introduction
In this present paper, we will discuss the social society and Medicare topic in which the history
of the program, the current configuration of the program and projections of the future of the
program is described. The social security program is defined as the concept which is enshrined in
the Article 22 of the universal declaration of human rights which states that every individual in
the society has equal reading the social security rights and it is entitled to realization by
international cooperation and national efforts.
Social security
It is mainly defined as the action program of the government which is intended to promote the
welfare of the people through assistance measures which guaranteeing access to the sufficient
resources in order to promote the wellbeing of the population.
History of the program
In the United States, it is mainly the known as the old-age, survivors, and disability insurance
program. The president Franklin Roosevelt had signed the social security act in the year 1935
and then it is amended as the various social security programs. The social security program was
not really arrived in the America, but following the civil war, there were a large number of
orphans, disabled and widows due to which the population of breadwinner had decreased in the
America which leads to the development of generous pension program in the year 1776. The
programs have started providing benefits to the disabled people at the time of war which later
turned into the social security program. In the year 1910, almost 90% of the people start getting
benefits from these programs, and the program is developed through collecting public opinion

(DiNitto et al., 2015). The military pension is one of the most important sources for the
economic security. There are various institutional strategies which are developed by the
government in America in order to assure economic security to the citizens (Gardner et al.,
2014). The Townsend movement was started by the Francis E. Townsend in order to provide
pension to the ole age people who are unemployed at the age of 66.
Current configuration of the program
The current outline of the social security program is simple that the employer, self-employed and
employee have to pay social security tax which goes into special funds and it is provided by the
to the people after their retirements. The social security program mainly includes three benefits,
namely, retirement, survivors and disability benefits (Kitao et al., 2014). The retirement benefits
are mainly provided to the people at the age of 65, the survivor's benefits are provided to the
survivors monthly, and disability benefits are provided to the workers who are partially and
permanently disable people. The social security program covered almost every type of
employment program, but the federal jobs are covered under the federal retirement system. If the
work is done by the parents for their children in the course of trade, then it comes under the
social security program. Currently, the amounts of benefits which are covered under the social
security program that is calculated on the basis of average earnings of individuals. The amounts
of benefits which are payable to the survivors are based on the amounts of workers benefits.
There are two benefits which are provided by the trust funds. Namely, interest income on the
invested assets of the funds and the amount can be drawn from the temporary situations .

Projections for the future of the program
The social security program needs to tap into the trust fund in order to cover the benefit
payments till 2020, and it is projected that the trust fund may be depleted by 2033. In early 2034,
the social security program will be able to pay out the benefits only when the tax is collected
which shows that the benefits may have to be reduced (Kane et al., 2017). The current estimate
shows the reduction in the social security board of trustees of approximately 25%. It reflects that
if the current system is not changed, then the benefits are not collected about 75%. The current
benefits increase every year in order to provide benefits to the citizens. It is projected that the
aging population and slower growth of labor force are straining the system. The payroll taxes are
projected to be less than the payout of social security. It is projected that the retirement age,
payroll taxes, and cost of living adjustments will be changed. It is projected that the SS changes
will impact on the retirement age which leads to making more savings.
Medicare
It is defined as the social insurance program which is administered by the US federal government
in the year 1966. In the United States, Medicare is funded by the payroll tax.
History of the program
The president Lyndin B. Johnson has signed the law in the year 1965 which leads to the Medicare and
Medicaid. The more benefits are provided to a large number of the population such as
prescription drug coverage and others. The Medicare program mainly provides benefits to the
low-income families, pregnant women, all ages people with disabilities, and people who required
long-term care. The part D of the Medicare program prescribes drug benefits which come into
effect in the year 2006 and part C provide Medicare advantage plans which are a private health

plan, and it was started in the year 2003 through Modernization act 2003 (Reese et al., 2015).
Part C has made the biggest change to the Medicare among the people. The children health
insurance program was developed in the year 1997 in order to give preventive care and health
insurance to the American children who are approximately 11 Million, and it is provided to all
the fifty states including District of Columbus and its territories (Goldman et al., 2014).
Current configuration of the program
The Medicare program is currently known as original Medicare. It includes part A and B. The
part A has hospital insurance and part B has medical insurance. There are various benefits which
are covered under the Medicare such as 3+ chronic conditions, poor health, less than high school
education, 2+ activities of daily living limitations, long-term care facility and others. Currently,
the basic health services include diagnostic tests, care in hospitals, preventive services, and
others. The traditional fee for service program is used to provide the Medicare beneficiaries.
There are various other programs such as preferred provider organization, health maintenance
program and other which enable to provide the Medical beneficiaries. The Medicare advantage
plans mainly covered all the beneficiaries which are covered under the traditional Medicare.
Currently, the FFS Medicare covered the Medicare beneficiaries. Presently there are four parts to
the Medicare program which enables to provide the Medical beneficiaries to the individuals. Part
A includes hospital insurance, and part B includes medical insurance. The aim of the program is
to provide health insurance program to the people under the age of 65, disables people and
people of all age who needs long-term care.

Projections for the future of the program
It is projected that the huge challenges will be faced in the Medicare due to increasing in the cost
of health care, aging population in the United States, and the declining ratio of workers to
beneficiaries. The upward pressure is increasing on the Medicare spending, and according to the
government experts, it is projected that there will be insufficient funds by the year 2019. It is
projected that the Medicare prescription drug benefits will be improved in the future in order to
provide benefits to a large number of people. It is projected that the health cost will be growing
in the future which increases the benefits in the future. It is projected that the growth rate of the
cost will be increased in the future.
Conclusion
It can be concluded that the Social security program is mainly used to provide social security to
the individuals. The social security program was started in the year 1935 which is mainly started
to provide the security to the people during the civil war, and it is changed from the pension
program to social security program. Currently, it provides three types of benefits, namely,
survivors, disability benefits, and retirement. It is projected that the shortage of funds will be
faced by the program because the aging population slows the growth of labor force. The
Medicare programs covered all the medical beneficiaries, and it is provided currently through
FSS Medicare. It is projected that the huge problems will be faced by the Medicare in the future
due to the shortage of funds due to increasing in the health care cost.

References
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