The Trump administration says Medicare is going to run out of money three years earlier than previously expected.
That was one of the conclusions from an annual report the trustees of the Social Security and Medicare funds released Tuesday. The trustees are the commissioner of Social Security and the secretaries of labor, health and human services, and the treasury.
The trustees also said through the mid-2030s, both programs will see costs go up a lot more than the country's GDP, a consequence of baby boomers starting retirement and a smaller generation joining the workforce.
And for the first time since 1982, Social Security costs will exceed the money being put into it this year. That means the government will have to dip into the trust fund to keep paying benefits in full.
But when the fund runs dry in 2034, the government will only be able to pay about three-quarters of Social Security benefits, relying on tax income.
For Medicare, the coffers are expected to be empty in 2026, just eight years from now. Last year's report put it three years later. After that, the government predicts it will be able to pay 91 percent of promised benefits.
The government can fix the problem by slashing benefits, raising taxes or a combination of the two. The trustees said the sooner lawmakers act, the better.
Additional reporting from Newsy affiliate CNN.
