Is Medicare safe from budget cuts?

No! Politicians love to say Medicare is untouchable, but anyone paying attention knows that’s not true. Both parties claim they’ll protect the program; the reality is that Medicare is one of the biggest expenses in the federal budget, so naturally, it is always a target of cuts.

During the Trump era and beyond, budget hawks have pushed for cuts to so-called “entitlements,” which include Medicare, Social Security, and Medicaid. Despite the political rhetoric, experts agree that long-term cost reductions have to involve Medicare in some way. The real question isn’t if Medicare will be cut, but how it will be done without gutting the program entirely.

So how could they cut Medicare without eliminating it?

The most likely changes would come in the form of higher out-of-pocket costs for beneficiaries, stricter means testing (which means higher-income retirees would pay more), and potential adjustments to eligibility ages. Some proposals have suggested shifting Medicare toward a voucher system, where seniors would receive a set amount to purchase private insurance, though that idea hasn’t gained much traction recently.

The bottom line is that Medicare will survive. But it won’t stay exactly as it is today. Tweaks and cost-saving measures are inevitable, whether through higher premiums, payment reductions to healthcare providers, or changes in how services are delivered.

While politicians may promise to “protect” Medicare, they’ll also have to make tough decisions to keep it solvent. If politicians continue to steer clear of dreaded Medicare cuts, the trust fund will run dry on its own. Doing nothing is the worst option!

Don’t hate on any political party that takes the bold steps to prolong the Medicare (and Social Security) trust funds. Benefits will likely be cut, and prices will likely increase. But the program will be here.

Everyone wants to know who is to blame for the situation we are in, but the answer is likely YOU. You are living much longer than expected when these programs were set up. You are having fewer children than families did in the 1930s when Social Security was written into law. Fewer kids mean fewer workers paying into the system. I have four kids of my own, so I like to joke that I’m part of the solution.

Changes are coming. How can you plan for the unknown? Improve your health in any way that you can and then stay informed and plan for potential cost increases. While dramatic cuts may not happen overnight, small changes can add up over time – impacting coverage, costs, and how Medicare operates in the future.

Sylvia A. Gordon, JD is known nationally as “Medicare Mama” to over one million followers on social media. She has 30 years’ experience in Medicare insurance. Her family has helped tens of thousands of retirees across the nation. Find her book, “Medicare Mama’s Guide to Medicare and Social Security Retirement” on Amazon, Kindle, and Audible.