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, 2013 — Many elderly Americans are being forced out of retirement or are working well into their retirement years to cover their debts, living expenses. Increasing number of US seniors living in poverty The $275 billion in new cuts to Medicare and Medicaid in the US Senate's 2014 budget proposal would spell further hardship for the elderly. Millions of retired Americans rely on these social programs, in addition to Social Security, to cover a significant share of their increasingly expensive health care costs.