LETTERS: A CHRONOLOGY OF SOCIAL SECURITY

To the editor:

Upon seeing the response to my recent letter supporting the concept of the more affluent Medicare Part B subscribers paying higher premiums, it is gratifying to know that there is someone out there who reads our stuff. It recalls the comment of a prominent politician of the past in St. Louis: "I don't care what you say about me, just spell my name right."

Some time ago, I compiled a chronology of the present status and future outlook of Social Security, Medicare and Medicaid from various sources. It could be beneficial to present it here for review.

Social Security was enacted in 1935. The rate of withholding from the worker's wages started at 1 percent. These gradually increased

Year Percent

1950 1.50

1954 2.00

1957 2.25

1959 2.50

1960 3.00

1963 3.50

1966 4.00

1969 4.50

Presently, 6.2 percent is withheld for Social Security and 1.45 percent for Medicare. The employer forwards a total of 7.65 percent withheld from the employee's wages or salary along with an equivalent amount (the employer's share) to the IRS.

Social Security receipts are used currently by the government to pay claims. The balance goes into a trust fund. The government borrows money from the trust fund on a continuing basis, replacing it with government bonds. (This money borrowed is not included in the annual deficit.) The trust fund balance is currently well in excess of $500 billion. This balance is estimated to accumulate (amounts vary) until 2018, when it will become necessary to supplement retiree claims. It is further estimated to be depleted by 2030. After 2030, income will fund only 75 percent of claims.

Medicare Part A (hospitalization), funded by withholding receipts, currently is running a deficit. This is compensated from the trust fund. Current balance: $126 billion. The trust fund is projected to be depleted by 2000 or 2001.

Medicare Part B (medical care) is funded 25 percent by retiree premiums and 75 percent by the federal treasury. There is no trust fund.

Medicaid is a state-administered program providing payment of health-care services for residents unable to make payment themselves. This includes children and adults of all ages. Long-term care is a sizable part of this program. The federal government shares a significant portion of this cost with the states, ordinarily about 50 percent.

Note: In 1940, life expectancy at birth was 61.4 years for males and 65.7 years for females. Today it's 72.5 years for males and 79.3 years for females. By 2025, life expectancy is projected to increase to 75.6 for males and 81.5 for females.

In 1945, 42 workers supported each recipient. Last year, 3.3 workers supported each recipient. The support level is expected to drop to 2.2 workers for each recipient by 2025.

After reviewing the foregoing, it seemed incumbent that I ask myself what I would do if I were the president or a legislator to address taking necessary action. It occurred to me that even I may have to kick in more to fix it. There is an adage that fits every situation. In this case, "If the shoe pinches, endure the pain, change the shoes or go barefoot."

GILBERT DEGENHARDT

Cape Girardeau