Social Security Releases 2018 Trustee Report: Expect More Aggressive Measures from CMS.

On June 5, 2018, the Social Security Board of Trustees released it’s annual report on the long-term financial status of the Social Security Trust Funds.  Per this report, the Old—Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034 and Medicare by 2026. This projection remained the same from the previous year. More importantly, while the assets of the combined OASI Trust Funds increased by $44 billion in 2017, the total annual cost of the program is projected to exceed total annual income in 2018 for the first time since 1982, and remain higher throughout the 75-year projection period.

These figures are especially worrisome for those of us in the industry as Medicare has become increasingly more aggressive in recovery of payments, denial of payments, and garnishment of benefits. As the total annual cost of the program is expected to exceed the annual income, it is reasonable to conclude that more forceful tactics by the agency will be implemented to protect the Fund. Furthermore, civil penalties and other previously under utilized measures may be on the horizon. We at Gordon & Rees are committed to bringing you the most up to date information regarding this matter and will continue to report as new developments occur.

 

 

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