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Archived News Release — Caution: Information may be out of date.
OPA News Release: [04/23/2007]
Contact Name: Gloria Della or Matthew Faraci
Phone Number: (202) 693-8664 or x4676
Release
Number: 07-0599-NAT
Statement of U.S. Secretary of Labor Elaine L. Chao following
Social Security and Medicare Board of Trustees meeting
WASHINGTON — U.S. Secretary of Labor Elaine L. Chao released the following statement after today's Social Security and Medicare Board of Trustees meeting:
"Today's report shows that we need to do more to ensure that the promises made to America's workers are kept.
"The good news is that the new prescription drug benefit, Medicare Part D, has been even more successful than was projected, saving millions of seniors billions of dollars in prescription drug costs.
"The bad news is that while the Social Security and Medicare Trust Funds are able to meet their obligations today, their long term financial prospects have not significantly improved.
"If you turn 65 and enroll in Medicare today, the Trust Fund will be spent by about your 77th birthday. If you are 33 today, by the time you are eligible for full Social Security benefits, funding for those benefits will fall short.
"Social Security payments will exceed payroll taxes in 2017, just 10 years away. Medicare already spends more than it collects in payroll taxes and premiums.
"We need to act soon to reform the programs so they are sustainable.
"For the second year in a row, Medicare is estimated to receive more than 45 percent of its funding from general revenues within the next seven years. Under the law, the administration must propose and Congress must consider reform legislation next year.
"We must all work together to find solutions to our common problems to ensure America's workers continue to be able to count on these two important programs."
Archived News Release — Caution: Information may be out of date.
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