Medicare, Social Security Owe Up to $52 Trillion to Current Retirees and Workers

Press Release:

DALLAS, Dec 03, 2008 /PRNewswire-USNewswire via COMTEX/ --

Debts Up To Three and Half Times Greater Than Entire U.S. Economy
If the federal government stopped the Medicare and Social Security programs tomorrow -- collecting no more payroll taxes and allowing no more accrual of benefits -- it would still owe up to $52 trillion to those who have already earned these benefits, according to a new study by the National Center for Policy Analysis (NCPA).
"The numbers are staggering," said Andrew Rettenmaier, an NCPA senior fellow and coauthor of the study. "No one thinks we are going to end these programs," he said, "but if we account for federal obligations the way private pensions and state and local governments are required to, the federal government owes up to $52 trillion (in current dollars) as of today."

To put the numbers in perspective, the size of the entire U.S. economy is $14 trillion. The newly released study determined that: --

An estimated $9.5 trillion is owed to current retirees -- an amount
equal to almost $250,000 per person 65 years of age and older in 2008.

-- Adding the liability owed to those nearing retirement (55 and older)
more than doubles the accrued debt to $20.6 trillion.

-- Adding the benefits accrued by younger workers brings the total to as
much as $52 trillion. The beneficiaries include all retirees, as well as
anyone in the workforce above 22 years of age.

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MD Medicare Choice Under Receivership

MD Medicare choice in Tampa Florida has been placed in receivership by Leon County Circuit Court Judge P. Kevin Davey as reported here. Their Medicare Advantage plan had more than 16,000 members across 23 Florida counties. The company had already been under administrative supervision by the Office of Insurance Regulation, but following the difficulties in the stock market these past couple of weeks, the SEC has frozen the $27 million that MD Medicare Choice had as reserves in the Primary Fund of Reserve Management Corp. The current Medicare Advantage contract will be void as of today midnight, and policy holders will be switched to Humana policies. For more information call 1-800-758-4806 or 1-800-833-3301 if you are a beneficiary, or 1-800-882-3054 for information about receivership. You can also log on to http://www.myfloridacfo.com/Receiver/.