Will The Next Ceiling Debate Delay Your Social Security Checks… or Bankrupt Medicare?

Although the White House and the two sections of Congress recently reached a last-minute deal to resolve the federal debt crisis, keen observers have noted that another fight will most likely lose in the future. For all the progress that was made during the talks, the final resolution did more to push the problem to another day than anything else.

In other words, the toughest decisions are still to come.

Few groups are as worried about the possibilities – with good reason – then today’s retired seniors. Many rely on the income and assistance that come from programs like Social Security and Medicare… the very programs that most cost-cutting politicians in Washington are targeting most heavily.

And so, while the debt crisis has passed for now, how worried should you be that the next vote on the debt ceiling will delay your Social Security checks, or remove Medicare coverage altogether?

The good news is that the chances of either of those happening are extremely low. Why? Because Congress, like any democratic body, still has voters to answer to. The public outcry that would result from missing Social Security payments, or the sudden failure of Medicare benefits for seniors, would be enormous. That’s the kind of situation that would likely cost large numbers of politicians their jobs, and so it is tremendously unlikely to occur.

However, that knowledge shouldn’t obscure the fact that seniors, and especially those considering retirement in the next 5 to 10 years, do have a lot of issues to think and worry about. That’s because, beneath all of the speeches and political posturing, there is a very real issue that will have to be dealt with. The debate is often structured as a choice between the government improving its bottom line by raising taxes or decreasing benefits, but the reality is that some sort of compromise will likely have to be reached. In other words, it will probably take a little bit of both.

As a result, most analysts consider it fairly likely that the minimum ages for assistance with Medicare and Social Security are likely to be raised, by at least a few years, sometime in the future. These changes probably won’t affect those who are already retired, but they may be a concern to those who are still working. Combined with a tight economy and a choppy stock market, they create a situation where future retirees need to be cautious.

Where does that leave today’s seniors? Although Social Security and Medicare are likely to be bankrupted or canceled, it’s prudent to look for supplemental insurance, including Medicare Advantage and Medigap, if it falls within your budget. While these policies and programs might not replace your existing government benefits, they can serve as a buffer for unexpected out-of-pocket costs – whether changes come to Social Security and Medicare or not.

Many in Washington are guilty of making too much of the risks to today’s seniors stemming from the budget crisis. Still, if you have the option, it’s always better to be more prepared for changes in the future, especially when your health is on the line.