The Board of Trustees for Social Security and Medicare recently released a bombshell of a report that shows this essential health safety net is coming apart at the seams. The report estimates the Medicare trust fund will run dry in 2024, five years earlier than last year's estimate, and went on to explain, "The fund is not adequately financed over the next ten years." In an alternate estimate also released, the Centers for Medicare and Medicaid Services' Chief Actuary Rick Foster painted an even more dire picture, reporting that Medicare's unfunded obligations could be significantly higher, and long-term costs could dramatically increase from the numbers provided in the Board of Trustee's report. .Their bill would address the administrative funding challenges that the Social Security Administration has been facing for several years. Since 2010, the Social Security Administration's budget has declined by 9 percent, resulting in a loss of 10,000 employees and the closure of more than 10 percent of all field offices nationwide. At the same time, the number of Social Security beneficiaries has increased dramatically by 15 percent since 2010. .A major reason that the COLA is so low is the consumer price index that the government uses to calculate the increase. Under current law, the COLA is tied to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That index surveys the spending patterns of younger working adults and does not include the market basket of goods and services that is more typical of people age 62 and over. The CPI-W gives greater weight to goods and services that younger workers spend more on, like gasoline prices and electronics, which have dramatically dropped in price over the past two years. It gives less weight to housing and medical expenses even though those two categories have experienced bigger price jumps over the past two years, and are the two biggest spending categories for older consumers. .In recent years, inflation and COLAs have been virtually flat, averaging just 1.1% per year since 2010 — with no COLA at all in 2016 and just a 0.3% COLA in 201Slow growth in Social Security benefits, particularly when it continues over a period as long as 8 years, has a very significant impact on the overall amount of lifetime income that retirees can expect from Social Security. When retiree costs climb while benefits remain flat, people wind up having to dig more deeply into retirement savings (if they have any), spending more quickly than anticipated. Many people without other pensions or savings are forced into debt. About one in four low-income older Americans is dependent on programs that provide assistance with essentials like food and healthcare costs. .Second, in October, Congress passed legislation to strengthen Social Security's Disability Insurance (DI) program. Many of the recommendations that TSCL made to the House Ways and Means Committee back in August were signed into law, including provisions that will ramp up fraud prevention and test new work incentives for beneficiaries. Most importantly, the law prevents a 20 percent benefit cut that was scheduled to hit 11 million disabled beneficiaries in December 201A cut of that size would have been truly devastating for enrollees, and TSCL applauds Members of Congress for averting it. .The GAO has noted that a totalization agreement may motivate additional unauthorized workers to come to the United States. Similarly, the prospect of an amnesty program passing the Congress in the coming months will likely encourage increased illegal immigration in anticipation of an easy road to U.S. citizenship. .Source: "Audits Of Some Medicare Advantage Plans Reveal Pervasive Overcharging," Fred Schulte, Center For Public Integrity," NPR, August 29, 201"Medicare Advantage: Fundamental Improvements Needed in CMS's Effort to Recover Substantial Amounts of Improper Payments, Government Accountability Office, April 2016. .Nevertheless, Congress is considering ways to "redesign" Medicare. The Congressional Budget Office (CBO) estimates that changing the cost-sharing rules for Medicare and restricting Medigap coverage would save the federal government 4 billion over the next ten years.[1] Medicare supplements, better known as Medigap, cover Medicare's deductibles and other out-of-pocket costs. The plans are popular with seniors because they provide financial certainty by reducing unexpected out-of-pocket expenses. .Who are these beneficiaries? The Inspector General's report refers to these beneficiaries as dependents and survivors of other Social Security beneficiaries and subject to the Social Security Alien Nonpayment Provision (ANP) law. The ANP forbids payment of retirement, survivor and disability benefits when non-citizens have been outside the United States for more than 6 months. But as is so often the case with Social Security law, there are several exceptions; for example, if the non-citizen is from a foreign country that has its own social insurance system and meets certain conditions. Mexico is on the list of countries that meet the conditions of the exception.