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What to Know for Tuesday, June 9th, 2026: |
1: Proposal to invest Social Security trust fund in stocks won't work alone — would fail 64 out of 100 times, Boston College analysis shows |
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(Image Credit: Getty Images) |
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Cassidy-Kaine proposal: invest $1.5 trillion trust fund in stocks for 75 years while borrowing $26.6 trillion total: Senators propose taking current trust fund and investing in equities for 75 years while Social Security borrows $1.5 trillion initially, then additional $25.1 trillion to maintain benefits — after 75 years, would pay back Treasury from investment gains — similar methods used in Canadian pension, US Railroad Retirement, Thrift Savings Plan. Even with optimistic 6.5% annual returns, plan fails to repay debt 64 out of 100 times: Boston College researchers found with historical 6.5% real return and 2.3% interest rate, trust would grow to $30.6 trillion — seemingly enough to repay and have $4 trillion left — but simulations show plan "would not earn enough to pay back the debt 64 out of 100 times" — if returns only 4%, fund grows to just $5.2 trillion, leaving $20+ trillion shortfall. Doubling national debt would worsen stock performance, only 21% debt repaid: If government borrowed $26.6 trillion, would raise interest rates and hurt stock market performance — with 3.5% return and best market conditions, trust fund would only pay off 21% of original debt — "most likely outcome...government will end up with big pile of debt, requiring large interest payments" — better solution: raise payroll tax 3.82% AND invest 40% of trust fund in equities.
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➜ Read the full article from Investopedia here. |
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2: Medicare Part D out-of-pocket max set at $2,100 in 2026 — some Medicare Advantage plans disappearing, auto-enrollment changes for Rx payment plan |
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(Image Credit: Getty Images) |
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Medicare Part D three-stage system with $615 deductible, $2,100 out-of-pocket maximum: Deductible Stage: seniors pay up to $615 full deductible; Initial Coverage Stage: pay 25% coinsurance with $2,100 out-of-pocket maximum for covered prescriptions; Catastrophic Coverage: once spent $2,100, no more out-of-pocket for covered drugs rest of year — important: only money on covered medications counts, uncovered drugs cost full price yourself. Medicare Prescription Payment Plan automatically re-enrolls seniors in 2026 unless they opt out: Started in 2025, plan lets seniors spread prescription costs over year with Medicare billing instead of paying full cost at pharmacy — now auto re-enrolled for 2026 unless opt out, with response to opt-out requests within 3 business days — helps ensure medication access with more affordable payments. Medicare Advantage experiencing stricter marketing rules and plan reductions — UnitedHealth dropping coverage in 109 counties: Some MA providers tightening guidelines on extra coverages with stricter marketing regulations on perks — some insurers stopping certain plans/coverage in specific counties in 2026 (UnitedHealth affecting 180,000 members) — if your MA plan disappears, must choose different MA plan or switch to Original Medicare during open enrollment (Oct 15-Dec 7 general, Jan 1-March 31 for MA).
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➜ Read the full article from AOL here. |
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3: SNAP loophole allows millionaires to get food stamps — "broad-based categorical eligibility" expanded benefits to 5.6 million ineligible people |
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(Image Credit: AP Photo) |
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Retired engineer in Minnesota buying lobster, filet mignon with food stamps — "broad-based categorical eligibility" loophole allows wealthy to qualify: Two routes to SNAP: standard income/asset tests (max $41,795 income for family of 4, $3,000 assets) OR automatic qualification if receive "service" from another program like brief referral or brochure — about 20% of SNAP beneficiaries through this loophole have over $100,000 in assets — 46 states using it, 28 raised income limits to $64,300 (double poverty line). Loophole expanded SNAP to 5.6 million ineligible beneficiaries, increased spending from $28 billion to $101 billion: SNAP participation ballooned from 17.2 million monthly average in FY2000 to 42.3 million in FY2025 (1 in 8 Americans) due largely to broad-based categorical eligibility loophole — states use it to enroll more people to get more federal SNAP money — creates incentive for states to grow programs rather than reduce poverty. Higher improper payments and fraud vulnerability — Congress should eliminate loophole, states can act independently: Broad-based categorical eligibility associated with higher rates of errors, waste, fraud, abuse by weakening verification requirements, costing taxpayers billions and eroding public support — opinion calls it "frankly, an embarrassment" — Congress should end loophole, and states like Minnesota can independently choose not to use broad-based eligibility and impose asset limits.
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➜ Read the full article from the Hill here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Tuesday, June 9th. |
What Social Security Owes You in 2026 — Find Your Birth Year (Most People Never Claim It) |
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What Social Security Owes You in 2026 — Find Your Birth Year (Most People Never Claim It) |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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