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These developments include an expected Administration proposal to essentially freeze overall funding for domestic discretionary programs ( other than homeland security ) for the next five years , without any adjustment for inflation or population growth . The parking brakes were out of adjustment and the brake linings and drums were worn excessively . Medicare-risk health plans that have previously implemented health management systems to reduce hospitalizations will be penalized during the initial risk adjustment process because payments would have been increased by prior hospitalizations . That fund , the Medicare fund , in the next several years , unless some adjustments are made , is going to - - well , we're going to have to do something to correct it , because that fund is being drained as the Social Security fund had been drained . Oct 16 , 1994 which committed annual price adjustments to the industry to make up for the increase in input costs such as inflation and devaluation , there had been no implementation since November 1996 . Retirement pensions are designed to replace 25 percent of a worker 's average annual lifetime earnings ( after adjustment for inflation ) . We have made some adjustments to the rules to decrease their impact on small businesses . Legislative adjustments will surely be needed along the way . " If you believe this is a " problem " as defined in terms of a finite shortfall and a cut in benefits for future retirees , I * think * it goes without saying that you think adjustments can be made to the current program to fix this problem .