Congress and Presidency Must Collaborate on Medicare Funding Fix

Although the trustees of the Medicare and Social Security trust funds believe that they can eke out another year of funding for each program, their report this year shows that the revenue required to operate Medicare will exceed 45% of the programs expenditures. According to the Detroit News, this triggered a "Medicare funding warning" which requires the President to propose ways to resolve the Medicare funding issue in his 2009 federal budget proposal. Additionally, Congress will be required to consider this 2009 Presidential budget proposal, most likely by holding hearings on the issue.

Medicare and Social Security are in real danger of running out of money, but it is unclear as to how this issue will be resolved. One major obstacle is that Congress is required to consider the President's budget proposal, but is not required to act on it. Medicare funding is likely to remain a serious issue unless and until Congress and the Presidency collaborate on an acceptable solution to the problem.