Annual report delivers sobering news concerning Social Security, Medicare
Just in time for the upcoming anniversary of the Social Security Act of 1935, the 2017 Annual Report of the Social Security and Medicare Board Trustees is out; and, once again, the news is sobering.
According to a summary of the report, “Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing.” Additionally, the debate over health care has put Medicaid in the spotlight, so it’s time for a Q&A on three of the largest components of the federal budget, which account for about $2.4 trillion of spending.
Q: How is Social Security funded?
A: It’s a pay-as-you-go system, funded by payroll taxes (the FICA line item you see on your pay stub). Every employee (and employer) pays a 6.2 percent tax on earnings up to a limit, which is currently $127,200. If you are selfemployed, you have to pay as both the employer and the employee, for a total of 12.4 percent.
Q: Where does the money go?
A: There are two trust funds: one for retiree benefits (the “Old-Age and Survivors” or “OASI”) and one for disability insurance (DI). Decades ago, there were more people working than retired, which kept
PA. www.communityartsphoenixville.org
COMMUNITY FESTIVAL
Aug. 23-Aug. 26: St. Teresa of Calcutta Parish wil hold its annual festival at Swamp Pike and Neiffer Road in Limerick Township. The 9th annual festival runs from 6 p.m. to 11 p.m. and features amusement rides by Tons of Fun, bungee jump and rock wall by Bruster’s of Limerick, children’s games, adult games of chance, pony rides, balloon art, Bingo, bake table, cash raffle with $5,000 grand prize, Beer & Wine Garden, and Business Expo. The festival also features live music: Thurs. Aug. 24: Alex O’Brien & Mr. Mike on the Box; Fri. Aug. 25: John Anthony Seitz Band; Sat. Aug. 26: Dibbs Preston & the Detonators For more information, visit www.stfestival.org.
COMMUNITY ARTS PHOENIXVILLE
Friday, August 25: Friday Films 7-10pm Featuring the film “Woman In Gold.” FREE, Donations Appreciated. Woman in Gold was filmed in 2015. It stars Helen Mirren and Ryan Reynolds. It is based on the national bestselling novel, The Lady in Gold by Anne-Marie O’Connor. It tells the true tale of Marie Altman’s struggle with the Austrian government for a painting she believes is rightfully hers. Bring your own snacks and refreshments! Popcorn will be provided. Community Arts Phoenixville is located at 207 Bridge Street, Phoenixville PA. www. communityartsphoenixville. org the plan fully operational and adequately funded. Then in 1977, Congress enacted a change in Social Security, which led to the government receiving more money from taxes than was necessary to fund future obligations, creating a surplus of money necessary.
Q: Is Social Security going broke?
A: No, but the surplus is getting drawn down, as the massive baby boomer generation retires. According to the 2017 Trustee report, the old-age fund will be depleted by 2035, matching last year’s projection. After that, the system would be able to pay 75 percent of promised benefits. That means that if you were expecting
COMMUNITY ARTS PHOENIXVILLE
Saturday, August 26: Exploring Florals in Paint and Pastel Workshop with Kristen Pell 1-3pm. In this workshop students will study the dramatic colors, shapes, and textures of florals! We will draw various plants and flowers from life while exploring the mediums of watercolor, pastel, colored pencil, and ink. All materials will be provided. No experience necessary! $30/person, RSVP in advance appreciated. Drop-In is welcomed. Community Arts Phoenixville is located at 207 Bridge Street, Phoenixville PA. www.communityartsphoenixville.org
Week of August 27 GOLF OUTING
Tuesday, Aug. 29: Please join us for the 15th Annual King of Prussia Rotary Club Charitable Foundation Golf Outing to be held at Plymouth Country Club, a beautiful 18 hole championship golf course located in Plymouth Meeting. Registration opens at 10:30 am with tee time for this scramble outing at 12:00 pm. Dinner to be held at the course immediately following the round. Prizes for best foursome, longest drive, closest to the pin and more! Visit kingofprussiarotary.org for more information.
Week of September 3 NORRISTOWN POLICE THOMAS BARONE MEMORIAL CAR SHOW
Sunday, Sept. 3: The 5th Annual Norristown Police Thomas Barone Memorial Car Show will be held at the Norristown Maenner-Chor Club, to $2,000 a month in retirement in 2035, your payout would shrink to $1,500.
The trustees project that the disability fund will be depleted by 2028, five years later than previously projected. After which, the payout would be 93 percent of promised benefits. Q: What is Medicare? A: Medicare is the government’s health care plan for those over age 65 and for those who are permanently disabled. There are four different parts of Medicare coverage: Part A (hospital services and skilled nursing), Part B (doctor visits/outpatient services/lab work/preventative
920 Haws Ave on Sunday, Sept. 3, 2017. Proceeds support the Thomas Barone Scholarship Fund FOP #31. Bob Kelly, traffic anchor, Good Day Philadelphia - Fox 29 will be making a personal appearance. All cars, motorcycles and trucks are welcome -- from project cars to show cars. Pre-Registration is $15 and registration on the day of the show is $20. Registration is from 9 - 11 am with the show beginning at 11 and ending at 3. This is a free event and open to the public. Professional judging will determine awards for Excellence, Top 40 and Best in Class. Breakfast sandwiches, coffee & donuts will be offered beginning at 8 a.m. Lunch, beverages, music, raffle baskets will all be featured, as well as air-conditioned indoor seating. For more information or if you would like to become a sponsor of this event please contact: Rich at 610-5857115 or raceitch3@verizon. net. Websites: http://www. norristownmaennerchor.com/ and http://www.everycarshow.com/ to download flyer. Pre-registration is $15 must be received by August 27, 2017. Rain date is Sunday, September 10, 2017.
6TH ANNUAL KPVFC 9⁄11 MEMORIAL 5K & 1 MILE WALK
Saturday, Sept 9: 6th Annual KPVFC 9⁄11 Memorial 5k & 1 Mile Walk Saturday, September 9, 2017 at the King of Prussia Volunteer Fire Company at 170 Allendale Rd. Registration opens at 7:30 am and the run begins at 9:00 am. Visit kpvfc.com for online registration and more information! services), Part C (Medicare Advantage Plans or private insurance alternatives to Original Medicare Plans) and Part D (prescription drugs).
Q: Is Medicare going broke?
A: The trustees project that the trust fund for Part A will be depleted by 2029, one year earlier than they projected last year. By 2029, Medicare Part A would only be able to pay out 88 percent of expected benefits. The big issue is the cost of health care is rising. The trustees project that total Medicare costs will grow from approximately 3.6 percent of GDP in 2016 to 5.6 percent of GDP by 2041, and will increase gradually thereafter to about 5.9 percent of GDP by 2091. Q: What is Medicaid? A: It’s the country’s largest government health care program, covering about 20 percent (74 million) of all Americans, including low-income families, pregnant women, people with disabilities and those who need long-term care.
Q: How is Medicaid currently funded?
A: It is a partnership between the federal government and the states, where each pays a portion of a patient’s bills, with no limit.
Q: How much does Medicaid cost?
A: In FY 2016 (Oct. 1, 2015 through Sept. 30, 2016), total Medicaid spending, including administrative costs, accounting adjustments and the U.S. Territories, was $574.2 billion, according to the Kaiser Family Foundation. Over the next 10 years, the government projects that Medicaid spending growth will average nearly 6 percent.