Op-ed calls for stronger means testing, service limitations for Social Security, Medicare

Social Security and Medicare are approaching a financial reckoning that Congress can no longer treat as a distant problem. The Social Security trust fund is projected to become insolvent in 2032, followed by Medicare’s hospital insurance fund in 2033. If Congress does nothing, insolvency could mean cuts of roughly 10% across the board for Medicare and 25% for Social Security, according to an editorial board op-ed published Monday by The Washington Post. The editorial board argues that the trust fund framework can obscure how both programs actually operate. “Both programs are, and have always been, pay-as-you-go, where taxes collected from current workers fund benefits for current retirees,” the op-ed stated. “Social Security and Medicare both add to annual deficits right now, even though the trust funds still have positive balances on paper.” Looming insolvency dates should force Congress to make choices rather than automatically rely on general revenue, the op-ed argues. For Social Security, the board proposes moving toward a more targeted retirement system, similar to those used in other countries. A tax-funded benefit would provide a basic floor, while means testing would direct...