The Clinton Administration attributes the improvement in Medicare's finances to not just the growth economy but also to cost-cutting measures and its aggressive war on Medicare fraud and sloppy billing. Social Security is the largest federal benefit program, sending checks to 44 million Americans. In addition to retirees, Social Security also makes payments to disabled people and to the survivors of workers who die young. Of the two retirement programs, Medicare is expected to run out of money first. It is already spending money from its trust fund to pay benefits.
Lawmakers have yet to reach a consensus on how to shore up the ailing programs.
Earlier this month the National Bipartisan Commission on the Future of Medicare failed to agree on a plan to salvage the health insurance program. He again urged lawmakers to adopt his plan of setting aside 62 percent of the surplus for Social Security. Republicans have committed themselves to setting aside money to shore up Social Security, but have not done the same for Medicare. The Associated Press contributed to this report. Inc. All Rights Reserved.