US Medicare under threat

US authorities say the social security and Medicare systems, which provide pensions and health care for older people, are set to run out of money sooner than expected.



New estimates show that the Medicare trust fund, which pays for hospital care, will run out of money by 2017, and is already running at a deficit.



Social security funds for pensions will be exhausted by 2037, four years earlier than previously projected.



The costs of these two government entitlement programmes has already reached $1 trillion or one-third of the entire Federal budget.



Officials say that figure is expected to rise significantly as $80 million baby boomers reach retirement age over the next two decades.



Currently 51 million people receive social security benefits, and 45.2 million are covered by Medicare.



Analysts say the news will increase the urgency of the need for health care reform.