The Future of Social Security, Medicare, and Medicaid: What You Need to Know and How to Plan Ahead

By Justin J. Spraker, CFP^®, CRPC^®

Legacy Wealth Planning Group – Founding Partner
July 2025

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In the quiet corners of upstate New York, where creativity thrives and artistic communities flourish, conversations about brushstrokes, melodies, and movement often take center stage. But lately, another topic has been echoing through studios, galleries, and coffee shops: What’s happening to Social Security, Medicare, and Medicaid?

With the recent passage of President Trump’s “One Big Beautiful Bill,” many retirees and future beneficiaries are understandably concerned. Rumors swirl, headlines alarm, and misinformation spreads like wildfire. As a financial professional with 23 years of experience in estate planning, asset management, and retirement forecasting, I want to offer clarity, reassurance, and a path forward.

Let’s unpack what’s really changing—and what isn’t.

The Big Picture: Your Benefits Are Not Disappearing

First and foremost: Social Security and Medicare are not being eliminated. Despite the noise, the core benefits that millions of Americans rely on remain intact. The “One Big Beautiful Bill,” signed into law on July 4, 2025, introduces some changes—but they are measured, not catastrophic.

Social Security: Stability with a Few Adjustments

The bill does not cut Social Security benefits. In fact, it introduces a new bonus deduction for seniors: starting this year, individuals aged 65 and older can deduct an additional $6,000 from their taxable income ($12,000 for married couples). This means more money stays in your pocket.

There are no changes to the retirement age or benefit formulas—yet. However, the bill does establish a bipartisan commission tasked with exploring long-term solvency strategies. This commission may recommend adjustments in the future, such as:
– Raising the full retirement age gradually
– Increasing the payroll tax cap
– Modifying cost-of-living adjustments (COLAs)

But these are recommendations, not enacted changes. For now, your benefits remain secure.

Expert Insight:
“While the bill doesn’t solve Social Security’s long-term funding gap, it avoids panic-inducing cuts and instead signals a more measured approach,” says Dr. Alicia Munnell, Director of the Center for Retirement Research at Boston College. “The bonus deduction is a welcome relief for many seniors.”

Medicare: Expanded Access, Lower Costs

Medicare also remains largely untouched in terms of core benefits. Here’s what’s new:
– No cuts to Medicare Part A or B
– Expanded funding for Medicare Advantage (Part C), encouraging more preventive care and telehealth services
– Prescription drug cost cap: Out-of-pocket costs for Medicare Part D are now capped at $2,000 annually
– Limited drug price negotiation: Medicare can now negotiate prices for a select list of high-cost medications

These changes aim to reduce costs and improve access, especially for those managing chronic conditions or living in rural areas—like many in our upstate communities.

Medicaid: Targeted Reforms, Not Broad Cuts

Medicaid, which supports low-income individuals, children, seniors in nursing homes, and people with disabilities, also sees targeted—not sweeping—changes:
– Work requirements for able-bodied adults without dependents
– $10 billion investment in fraud detection and modernization
– No changes to eligibility for children, seniors, or disabled individuals

Expert Insight:
“The Medicaid work requirements are controversial, but the bill’s protections for vulnerable populations and its investment in fraud prevention are pragmatic steps,” says Paul Van de Water, Senior Fellow at the Center on Budget and Policy Priorities.

Why the Confusion?

Much of the anxiety stems from misinformation. Social media posts, partisan commentary, and even some news outlets have misrepresented the bill’s contents. It’s easy to see why people are worried—especially when headlines scream “Cuts!” without context.

But the truth is more nuanced. The bill is not a dismantling of the safety net. It’s a recalibration, with an eye toward sustainability.

Planning for the Future: Your Financial Toolkit

Even with benefits largely preserved, the landscape is shifting. That’s why proactive financial planning is more important than ever.

Here are three essential steps to take:
1. Forecast Multiple Scenarios
– Use spreadsheets or financial planning software to model different outcomes.
2. Work with a Professional
– A certified financial planner (CFP®) or fiduciary advisor can help you build a multi-year cash flow forecast.
3. Revisit Your Plan Annually
– Laws change. Markets shift. Life happens. Make it a habit to review your financial plan every year.

A Message to Our Artistic Community

To my fellow creatives, musicians, writers, and dreamers: I know financial planning can feel like a foreign language. But it’s not about spreadsheets—it’s about freedom. The freedom to keep creating, to age with dignity, and to protect what you’ve built.

You don’t need to become a financial expert. You just need to ask the right questions and partner with someone who listens.

Final Thoughts: Stay Informed, Stay Empowered

The “One Big Beautiful Bill” is not the end of Social Security or Medicare. It’s a reminder that these programs, while resilient, are not immune to change. But change doesn’t have to mean chaos.

With the right tools, the right guidance, and a clear-eyed view of the future, you can navigate whatever comes next.

So take a breath. Your benefits are still here. And with thoughtful planning, your future can be just as vibrant as your art.

About the Author

Justin J. Spraker, CFP, CRPC is a CERTIFIED FINANCIAL PLANNER practitioner^®, Chartered Retirement Planning Counselor^® with 23 years of experience in financial planning, estate settlement, asset management, insurance planning, tax strategy, and employer benefit plans.

Based in upstate New York, Justin his firm, Legacy Wealth Planning Group specializes in helping creative professionals and retirees build resilient financial futures.

In addition to being a NY advisor, Justin can assist clients in: Connecticut, Georga, Kansas, Massachusetts, Nevada, South Carolina, Tennessee, and Virgina.

When not in the office you will find him on the sidelines of one of his four kids sporting event or in the Adirondacks boating, camping, or snowboarding.