Are Medicare and Social Security Cuts Coming in 2023?
Are you wondering how the ongoing budget debates in Washington D.C. could lead to social security cuts in 2023? If so, you aren’t alone.
Medicare and social security are two of the most important programs for seniors in the United States. Just over 18% of American adults were on Medicare in 2021. Meanwhile, the Social Security Administration reports nearly 90% of people 65 and older received social security benefits in 2022.
With millions of seniors relying on these programs, you should have an accurate understanding of what’s happening in Washington right now and how these talks could affect your benefits going forward.
The battle for 2023 social security cuts
Since 2022 was a midterm election year, we’re seeing some changes in Washington. With this shift, new ideas come to light. And right now, a debate is raging around the national budget.
Some congressional members cite concerns about the growing debt ceiling and want to find ways to cut the budget and reduce spending. But how do lawmakers slash the budget? Well, one option is making 2023 social security cuts. Medicare and other assistance programs could also feel the impact.
Comments from the White House on 2023 Medicare cuts
President Biden has warned Americans that Medicare and social security might be under attack. But as of right now, there has been no decision on where the government’s spending cuts, if any, might come from.
Seven Republicans have included requests to cap spending as part of their demands of the new Speaker of the House, Kevin McCarthy. These concerns regarding the spending limit play a role in motivating proposed cuts, potentially to entitlement programs.
For now, 2023 Medicare cuts may not be on the table. But there is no guarantee these programs won’t be part of the proposed cuts. Because even among congressional members who are proponents of capping spending, not everyone believes Medicare and social security are the right areas to target.
Potential changes to social security and Medicare
One way social security and Medicare could be affected is by raising the retirement age. A group of Republicans argues this change is necessary because the average lifespan is longer now than when these programs were started.
In 2022, the full retirement age was raised to 67. So, there is a possibility Medicare eligibility could be changed to match this new retirement age.
These are examples of changes lawmakers have made in the past. But remember, we won’t know if 2023 social security cuts are on the table until an actual proposal comes through in Congress.
What happens next?
White House officials have said the President wants Congress to raise the debt ceiling—period. This means he is not planning to negotiate with the lawmakers using the debt ceiling as leverage for other debates.
The debt ceiling is the first issue to resolve. But if the limit isn’t raised, major cuts will be essential to keep the budget within its current boundaries. If the ceiling is raised, certain cuts could be included as a condition of the agreement. Some worry this could include social security and Medicare cuts in 2023.
Going forward, we’ll be watching how the debt ceiling conversation plays out. More importantly, we’re monitoring how changes in Washington will impact crucial programs for U.S. seniors.
If you’re concerned about 2023 social security cuts…
You might have concerns about whether your plan will be changed due to the budget situation in Congress. Unsure if your social security will be impacted? Worried 2023 Medicare cuts may impact your coverage? We can help!
If you have questions about your benefits, get in touch with us at 877.255.6273.
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