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       Troubled Medicare Outlook for Elderly Americans Slightly Improves

   by VOA News

   The U.S. program that pays medical costs for people over age 65 is on
   course to run short of money in 2026, which is two years later than
   previous estimates.
   Friday's report by top U.S. financial officials says the program
   benefited from a slower increase in medical costs.
   Data also show that the old age pension program called Social Security
   will not have enough money to pay full benefits by 2033,  which is the
   same as previous projections. That program is currently a key source of
   income for 58 million Americans.
   Officials say they will have to cut benefits sharply unless Washington
   agrees on ways to increase revenue, cut expenses or both.  Experts say
   prompt action will make these adjustments less painful for taxpayers
   and recipients, but Republicans and U.S. President Barack Obama's
   Democratic Party have been haggling over this issue for a couple of
   years without much progress.
   These programs make up more than one-third of government expenses.  The
   costs are growing as 10,000 members of the very large "Baby boom"
   generation reach age 65 each day.  The next generation has fewer
   members, so there are proportionately fewer people paying taxes to
   support these so-called entitlement programs.
   Separate economic reports show U.S. consumer confidence rose in May to
   the highest level in more than five years.  Consumer spending declined
   slightly in April.
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   [1]http://www.voanews.com/content/medicare-outlook-slightly-improves/16
   72863.html

References

   1. http://www.voanews.com/content/medicare-outlook-slightly-improves/1672863.html