Quote:
Originally posted by Tyrone Slothrop
My understanding is that Social Security is relatively OK, but Medicare/caid is in dire straits.
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Both Social Security and Medicare are "funded" through trust funds, which lend cash to the government throught the purchase of bonds. The people saying that SS is in trouble are pointing out that in the next several years, we will reach the point that federal govt. intakes of cash will not be adequate to pay off the bonds that are maturing. Thus, SS will not have the necessary cash to make the required payments to recipients.
