Social Security, Medicare oversight posts vacant for 3 years - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
October 2, 2018 Newswires
Share
Share
Post
Email

Social Security, Medicare oversight posts vacant for 3 years

Associated Press

WASHINGTON (AP) — Key posts overseeing the financial health of Social Security and Medicare have been vacant for more than three years, leaving the programs without independent accountability in the face of dire predictions about approaching insolvency.

With Washington corroded by partisanship and consumed by political crises, gridlock has become the norm and hundreds of senior government jobs remain unfilled. For beneficiaries and taxpayers the lack of "public trustees" for Social Security and Medicare means a loss of outside supervision over bedrock middle-class programs.

Most Americans may not even realize there's a role in government for public trustees of Social Security and Medicare, but insiders say the special advisers help keep annual financial reports honest by acting as a check on the ever-present temptation for political appointees to tweak the numbers.

"The public really doesn't have a representative sitting at the table with the government officials, and I think that is concerning," said Kathleen Sebelius, who was Health and Human Services secretary under President Barack Obama.

The public trustees — one Republican, one Democrat — are usually economists or retirement experts. They join four other trustees who are senior political appointees — the secretaries of the Treasury, Health and Human Services and Labor departments and the Social Security commissioner. Together they oversee annual financial reports and certify that the estimates are sound and unbiased.

Public trustees require Senate confirmation. Traditionally they are picked by the White House and the leadership of both parties, then nominated by the president. The White House has announced President Donald Trump's intention to nominate former Social Security official James Lockhart to fill the Republican seat; Democrats say they're working with the administration on a Democratic candidate.

Trustees serve for four years, and their terms can be extended. Obama, toward the end of his administration, re-nominated the incumbent public trustees for a second term. But with 2016 elections approaching, the Senate didn't take a final vote and the posts have been vacant since.

"What this speaks to is the hyper-partisanship of everything in Washington," said Bruce Vladeck, a former Medicare chief who chairs the board of the Medicare Rights Center advocacy group. "The absence of public trustees is a reflection of the growing indifference in Washington to actually operating the government."

This year's Social Security and Medicare report found both programs in deteriorating health. The insolvency date for Medicare's giant inpatient trust fund moved three years closer, to 2026. For Social Security, insolvency remained unchanged for 2034. But for the first time in 36 years, the cost of the retirement program was projected to exceed its annual income in 2018, meaning reserves will be tapped to pay benefits.

Nonetheless Treasury Secretary Steven Mnuchin was upbeat: "The programs remain secure," said Mnuchin's statement at the time.

"The administration's economic agenda — tax cuts, regulatory reform and improved trade agreements — will generate the long-term growth needed to help secure these programs and lead them to a more stable path," he added.

Mike Leavitt, health secretary under President George W. Bush, said the absence of public trustees is a symptom of deeper problems with old-age programs that Americans do not want to face.

"We have become desensitized," Leavitt said.

Public trustees fulfill "a piercing and profound purpose" as "knowledgeable private citizens empowered with information to make a declaration to their fellow citizens," he added.

Several former public trustees said they were generally able to set aside ideological differences while working with career staff at Social Security and Medicare to validate long-range financial estimates.

Those estimates are built from moving parts such as economic growth, life expectancy, hospital costs, births, immigration, disability rates and the introduction of new drugs and technologies. Social Security and Medicare combined account for nearly 40 percent of the federal budget. Social Security has more than 60 million beneficiaries, and about 60 million people are covered by Medicare.

Economist Marilyn Moon, a Democratic public trustee under President Bill Clinton, said she was involved in "pushing back pretty hard on some political appointees who wanted to make a political statement."

Ultimately the only leverage public trustees have is to withhold their signatures from the final report.

Without public trustees, professionals at Social Security and Medicare are loath to make changes in assumptions underlying the financial estimates. That means those estimates can get out of date, said Rick Foster, Medicare's former chief actuary, or top number-cruncher.

"The process can get a little stale," he said.

Economist Robert Reischauer, the Democratic public trustee on the 2011-2015 reports, said, "The closer we get to the cliff with these two programs, the more critical these positions and the integrity of the process become."

Stephen Kellison, the Republican public trustee on the 1996-2000 reports, said Americans are being deprived of a valuable perspective on programs they cherish.

"There's going to be a hard landing, and I don't have any confidence the way Congress works today that either party can solve the problem," Kellison said. "Could the public trustees be helpful? We probably need them now more than ever."

Older

Hippo Creates A Better Customer Experience With Proactive Approach to Homeowners Insurance

Newer

Wall Street Veteran Joins Pier 88 Investment Partners

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
More Annuity News

Health/Employee Benefits News

  • Help navigating options available
  • Medicare Assistance Program can help people navigate options
  • Millions of people drop ACA coverage amid jump in prices Millions drop ACA coverage amid price jump. Did fraud inflate signups? (copy)
  • Former city DPW director wants opportunity to 'defend my actions' in light of separation agreement
  • CDPHP, MVP Health Care among insurers seeking rate increases
More Health/Employee Benefits News

Life Insurance News

  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
  • ‘Recession-Proof’ Insurance Is Trending. Safety Net or Scam?
  • Winged Keel Group Expands National Presence and PPLI Leadership, Welcomes SBSI, Inc. (dba NFP Insurance Solutions)
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet