Yes, Social Security benefits will continue to go out in the event of a government shutdown. That's because Social Security, Medicare and Medicaid
Medicaid
Medicaid in the United States is a federal and state program that helps with medical costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and personal care services. The Health Insurance As…
What happens to social security if the government shuts down?
Social Security recipients will probably be largely unaffected by a shutdown. Checks for seniors, those with disabilities and survivors will go out as usual. ... A government shutdown will likely affect Social Security disability recipients who are applying for Medicare.
Does the government’s annual budget dispute affect social security?
When annual budget disputes within the government hit news headlines, there are understandable concerns from seniors and individuals under the age of 65 who qualify for Medicare due to disability who rely on the continuity of their Social Security benefits. The United States government’s fiscal year is October 1 through September 30.
Is Medicare a problem for Social Security recipients?
While the Social Security system anticipates a number of short-term challenges, for Medicare recipients, the financial burden will continue to be a problem well into the future. 26 How Has COVID-19 Affected Social Security?
When will the Social Security trust fund go bankrupt?
Also, the date when the Social Security Trust Fund is likely to go bankrupt has been shortened to 2034. How Has COVID-19 Affected Medicare?
What Is A Government Shutdown?
In short, a government shutdown occurs when the Federal government does not have enough money to continue operating and paying federal employees. Government agencies are funded through spending bills passed by Congress. Most budget bills passed by Congress include enough funding to operate the government for a couple of years.
Are Social Security Checks Affected by a Shutdown?
Typically, Social Security checks are not affected by a shutdown. Social Security payments do not require funding from Congress. These payments come directly from the Social Security Trust Fund, so the only funding required is for the employees managing these payments.
What Does The Government Shutdown Mean for SSI & SSDI?
As previously stated, existing Supplemental Security Income payments, Social Security disability benefits, and retirement benefit payments are usually not affected when the government shuts down. Similarly, if you have a hearing already scheduled with an administrative law judge, that hearing will likely take place as scheduled.
Are Social Security Offices Open During a Government Shutdown?
In most cases, local Social Security offices will either close or have very limited staff during a shutdown. In many cases, local offices are already closed due to the COVID-19 pandemic until further notice. The coronavirus has already caused many services to be shifted from traditional in-person processing to online services.
Conclusion
If you receive Social Security benefits, then you can be confident that those payments will continue even during a government shutdown. However, if you are going through the application process, you should expect delays in processing. Limited staff and office closings will result in longer wait times for application processing.
How will Medicare be affected?
Because Medicare is an entitlement program and not a discretionary program, Medicare benefits are not subject to the appropriation process. That means your benefits are safe; Medicare will remain mostly unaffected by the shutdown because it is deemed essential and mandatory spending.
How does a shutdown work?
During this particular government shutdown, 400,000 federal employees are expected to work without pay and another 350,000 employees will be furloughed, or granted an involuntary leave of absence without pay. Furloughed employees will still have jobs when the shutdown ends and will retain their benefits in the meantime.
Why is the shutdown happening?
The shutdown comes down to a spending argument and Democrats being unwilling to pass a funding bill that would allocate $5.7 billion for a border wall.
What is Social Security and Medicare?
Social Security and Medicare are federal programs that provide income and health insurance to qualifying populations, mostly older Americans and the disabled. Beneficiaries of both programs have been severely impacted by the COVID-19 pandemic.
How does Social Security work?
Social Security is commonly known as a “pay-as-you-go” retirement benefit. Current workers and their employers pay into the program through payroll taxes. The money goes into the Social Security Trust Fund , which pays benefits to current recipients.
What is the Medicare system?
The Medicare system provides healthcare coverage to people 65 and older, as well as those under 65 with disabilities. These populations are the most vulnerable when it comes to COVID-19. In addition to health concerns, these same populations will be financially vulnerable going forward.
How many changes did Medicare make in 2020?
Consider that between January 1 and July 24, 2020, more than 200 Medicare-related regulatory changes were made.
What is the NAWI for Social Security?
The amount you receive in Social Security benefits depends, in part, on something called the National Average Wage Index (NAWI). NAWI tracks wage growth to measure inflation. Due to COVID, the wage index for 2020 is expected to be lower than normal.
What happens if you turn 60 in 2020?
If you turned 60 in 2020, this lower wage index will affect the amount you receive in Social Security benefits. That’s because the Social Security Administration (SSA) uses the wage index from the year you turn 60 as part of the formula used to determine your lifetime benefit amount. 5.
When will Social Security disability payments increase?
Social Security actuaries predicted in November 2020 that COVID-19 survivors could suffer lingering effects, resulting in an increase in the number of people applying for Social Security disability payments in 2021, 2022, and 2023. After this, applications are expected to return to the baseline. 7