Social Security and Medicare Lock-Box Act

12/21/2024, 9:05 AM

Social Security and Medicare Lock-Box Act

This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account.

The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations.

The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations.

Bill 118 hr 853, also known as the Social Security and Medicare Lock-Box Act, is a piece of legislation introduced in the US Congress. The main purpose of this bill is to ensure that the funds allocated for Social Security and Medicare are protected and used solely for their intended purposes.

The bill proposes the creation of a "lock-box" system, which would separate the funds designated for Social Security and Medicare from the general federal budget. This would prevent these funds from being used for other government expenses, ensuring that they are available to support the retirement and healthcare needs of American citizens.

Additionally, the bill includes provisions for increased transparency and accountability in the management of Social Security and Medicare funds. It requires regular reporting on the status of these funds and prohibits any borrowing or transfers from these accounts for non-related purposes. Overall, the Social Security and Medicare Lock-Box Act aims to safeguard the financial security of American seniors by protecting the funds designated for their retirement and healthcare benefits. It seeks to ensure that these vital programs remain solvent and sustainable for future generations.
Congress
118
Number
HR - 853
Introduced on
2023-02-06
# Amendments
0
Sponsors
+5

Variations and Revisions

2/6/2023
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Social Security and Medicare Lock-Box Act

This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account.

The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations.

The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations.

Bill 118 hr 853, also known as the Social Security and Medicare Lock-Box Act, is a piece of legislation introduced in the US Congress. The main purpose of this bill is to ensure that the funds allocated for Social Security and Medicare are protected and used solely for their intended purposes.

The bill proposes the creation of a "lock-box" system, which would separate the funds designated for Social Security and Medicare from the general federal budget. This would prevent these funds from being used for other government expenses, ensuring that they are available to support the retirement and healthcare needs of American citizens.

Additionally, the bill includes provisions for increased transparency and accountability in the management of Social Security and Medicare funds. It requires regular reporting on the status of these funds and prohibits any borrowing or transfers from these accounts for non-related purposes. Overall, the Social Security and Medicare Lock-Box Act aims to safeguard the financial security of American seniors by protecting the funds designated for their retirement and healthcare benefits. It seeks to ensure that these vital programs remain solvent and sustainable for future generations.
Alternative Names
Official Title as IntroducedTo amend titles II and XVIII of the Social Security Act to establish a Social Security Surplus Protection Account in the Federal Old-Age and Survivors Insurance Trust Fund to hold the Social Security surplus and a Medicare Surplus Protection Account in the Federal Hospital Insurance Trust Fund to hold the Medicare surplus, to provide for suspension of investment of amounts held in such Accounts until enactment of legislation providing for investment of the Trust Funds in investment vehicles other than obligations of the United States, and to establish a Social Security and Medicare Part A Investment Commission to make recommendations for alternative forms of investment of the Social Security and Medicare surpluses.
Policy Areas
Health

Comments

Recent Activity

Latest Summary3/24/2023

Social Security and Medicare Lock-Box Act

This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, ...

Latest Action12/17/2024
Referred to the Subcommittee on Social Security.