U.S. Comptroller Warns On Benefit Costs

"You have to look at it as a package," he said. Individual programs, such as the private accounts proposed by the Bush administration, "are not an answer by themselves," he said.

Even more important than Social Security is reforming the healthcare system, where rising costs increasingly could have a chilling effect on the overall economy, Walker warned. As an example, he noted that employers are less likely to hire new employees, or could hire them as part time workers rather than full time, to avoid the costs of providing healthcare benefits. Additionally, the Medicare and Medicaid systems are carrying astronomical amounts of unfunded obligations, he said.

"If there's one thing that could bankrupt this nation, it's healthcare costs," he said. "That's probably the only thing."

Walker said that "ultimately, we're going to have to reform the entire healthcare system, in increments," putting an emphasis on demonstrating to consumers just how expensive healthcare has become for employers and the government.

"Individuals need to be more aware of the costs of healthcare," he said, noting that the costs of providing health coverage are not currently presented to workers in a way that's easy to see, such as on a W-2 earnings form.