Social Security, Physician Medicare On-Demand Payments For Early Default

American families who depend on payments from the federal government probably won’t get paid.

Chopping Block ( Photo: The Balance )

Warning that if the debt ceiling is not raised soon, the government will be unable to pay many bills

The millions of American families who depend on payments from the federal government probably won’t get paid. They range from the 66 million Social Security recipients to the millions of veterans and military families who have served our country with honor. The federal government is expected to pay an estimated $47 billion to doctors and other healthcare providers who treat Medicare patients. And on June 2, another $25 billion will be paid out to Social Security recipients.

Despite these prospects, there is little momentum for a temporary extension of the debt ceiling to give more time for negotiations. House Speaker Kevin McCarthy, a Republican, Calif., said on Tuesday that such an extension would reflect the assumption that current talks would break down.

No assurance was given to lawmakers in the security of Medicare and Social Security payments

The Treasury Department does not know exactly when it will be able to pay all the bills, telling lawmakers only “early June, possibly as early as June 1”, But if the worst-case scenario materializes and the Treasury hits a wall on June 1 or 2 without raising the debt ceiling it could face a decision on whether to raise it. It could have disastrous consequences for the economy.

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