Midterm Elections Can Impact Social Security’s Long-Term Survival

Published in the Woonsocket Call on August 19, 2018

After just weeks celebrating the 53rd Anniversary of Medicare to score political points, Democrats, aging groups and Social Security Advocates put 83 candles on a cake to celebrate President Franklin D. Roosevelt’s signing of Social Security Act into law on August 14, 1935. The new Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement.

With the midterm elections looming, less than three months away, the Democrats are gearing up their efforts to recapture the House and Senate. Polls tell us that Social Security is being positioned as a key issue to energize voters, especially in competitive races, to control both legislative chambers.

According to the Washington, DC-based AARP, recent polling suggests Social Security and Medicare will be key issues for 50-plus voters. Recent
AARP/Politico polls found a significant majority of age 50 and over Arizona voters report Social Security (78 percent), health care (76 percent) and Medicare (75 percent) are “very important” issues to them as they head to the polls in November. Also, significant majorities of older Florida voters age 50 and older say Social Security (82 percent) and health care (78 percent) will be very important to their vote for Congress this fall. In this swing state, nearly three-quarters of Florida voters cite the future of Medicare as an important election issue.

Social Security Checks Prime States and National Economic Engine

AARP, the National Committee to Preserve Social Security and Medicare (NCPSSM) and Social Security advocates say it’s a great time to remind political candidates for House and Senate races of the popularity of Social Security and Medicare and both programs impact on the nation’s fiscal health. The Washington, DC-based NCPSSM calls Social Security and Medicare an economic generator, annually paying out more than $ 800 billion in benefits to over 57 million beneficiaries who put this money back into their local, state and federal coffers.
In the Ocean State, there are 222,851 Social Security beneficiaries, including 152,898 Retired Workers, 37,133 Disabled Workers, 11,680 Widow(er)s, 5,810 Spouses and 15,330 Children Social Security benefits that pump $3 Billion each year to state’s economy, says NCPSSM, its figures taken from the nonprofits state-by-state analysis of how much revenue Social Security contributes to the economy of every Congressional District in each state.

“Social Security has a very big footprint in Congressional districts across the country, which is a tremendous benefit not only for beneficiaries, but for entire communities,” says Max Richtman, NCPSSM’s president, and CEO. “Yet, in the face of clear evidence of Social Security’s effectiveness, conservatives want to cut and privatize the program. Candidates in this year’s mid-term elections must ask themselves whether their communities can afford to lose billions of dollars in economic stimulus – not to mention the baseline financial security that these earned benefits provide retirees and their families. The answer for anyone who seeks to represent the people should be a resounding ‘No,’” he says.

Yet, throughout the years, GOP lawmakers sought to ensure the solvency for the Social Security program by cutting benefits, raising the retirement age and
to privatize the program. Democrats call for the raising or eliminating the payroll cap on taxable wages, now $ 118,500 a year, to bring more revenues into Social Security from the nation’s wealthy. They say Social Security must be considered an earned benefit rather than an entitlement because working Americans pay into the system each paycheck, and receive benefits when they retire or become disabled.

Key Congressional Races to Watch

And there are a lot of Congressional races to watch during the upcoming mid-term elections. According to fivethirtyeight.com, a website that focuses on
opinion poll analysis and politics, “… 39 Republicans and 18 Democrats are not running for re-election. That includes 13 Republicans and 10 Democrats who are leaving to seek another office, such as governor. Excluding them, 26 Republicans and eight Democrats are walking away from their political careers at the end of the 115th Congress. That’s the most “pure” retirements by Republicans — and the fewest by Democrats — since the 2008 election.”

NCPSSM is closely monitoring both House and Senate races, calling for voters to support candidates who commit to strengthening and expanding Social Security. “These Social Security champions can be found across the country, in both red and blue states,” says the Social Security advocacy group.
Here are just a few campaigns to watch.

NCPSSM says one of these Social Security campaigns is Kathleen Williams, a water conservation expert, who is running for the House seat in Montana currently occupied by Republican Greg Gianforte. The Republican Congressman, elected in 2017, voted for the sweeping GOP tax plan, the Tax Cuts, and Jobs Act, increasing the national debt by $ 1.9 trillion between 2018 and 2028, according to the Congressional Budget Office. The skyrocketing deficit puts Social Security, Medicare and Medicaid on the GOP radar screen for cuts to the nation’s debt and deficits. Gianforte’s opponent pledges to “make sure that our seniors can retire with dignity by protecting Medicare and Social Security no matter what.”

Another, in Arizona, three-term Democratic Congresswoman Kyrsten Sinema, formerly serving in both chambers of the State Legislature, is running for retiring Republican Senator Jeff Flake’s seat, a race that could determine which political party takes control of the Senate. “Sinema says, “We can’t allow… Washington to threaten the Medicare and Social Security benefits Arizonans have earned through a lifetime of hard work.” Her likely opponent, Republican Congresswoman Martha McSally, like Congressman Gianforte, voted for the GOP tax plan and Sinema has accused her of wanting to privatize Social Security while her Congressional voting record does not reflect this charge.

Finally, in Illinois’ 12th Congressional district, where challenger Brendan Kell, serving as the state’s attorney for St. Clair County and earned a commission as an officer in the U.S. Navy opposes incumbent Mike Bost. The Republican voted for the GOP’s failed Balanced Budget Amendment – Democrats and NCPSSM considering this a backdoor strategy to slash Social Security. The Democratic challenger Kelly that “instead of cutting Social Security, Medicare and Medicaid, as those in Congress currently want to do… we have to fight against that and expand the access and coverage overall.”

You Can Make a Difference

With the outcome of the midterm elections, especially in battleground state, AARP’s voter engagement multifaceted campaign “Be The Difference. Vote” is mobilizing older voters to get them to vote in primaries and in the November general election. The “get out the vote” initiative will put issues of particular importance to aging baby boomers and seniors front and center— issues like Medicare, Social Security, financial security, prescription drug costs, and family caregiving.

AARP is tracking key races, sponsoring debates, and hosting candidate forums and tele-townhall events. Election information is provided through a full-scale digital effort, including aarp.org/vote, the AARP Now app, social media outreach, graphics, and news alerts. AARP is also using direct mail, phone banks and transportation assistance to help people get to the polls.

Social Security celebrates its 83 Anniversary this month. Older voters can send a message to Capitol Hill by casting votes for candidates to strengthen and expand the program instead of voting for those who call to privatize Social to replace the federal government-administered system.

A Final Note…

Congressman David Cicilline (D-RI) will release a new report from the U.S. House Democrats’ Seniors Task Force during an event at Rumford Towers in East Providence this Monday. The report outlines the history of Washington Republican efforts to attack Social Security and Medicare.

Cicilline, who serves in the House Democratic Leadership, also plans to outline the policies that Democrats will advance if they take control of the House this November. Democrats have outlined a series of proposals to lower the costs of prescription drugs and health care premiums.

“Republicans are on the side of powerful special interests. Democrats are for the people,” Cicilline told me. “When Democrats take the majority, we’re going to pass legislation giving Medicare the ability to negotiate the cost of prescription drugs. We’re going to make Social Security and Medicare a priority by requiring the wealthy to pay into the system as much as everyone else and improving cost-of-living adjustments.”

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GOP House Budget Fray’s Nation’s Safety Net

Published in the Woonsocket Call on June 24, 2018

Just six months ago, the Republican-controlled House passed their massive $1.5 trillion tax cuts for the nation’s largest corporations and to the wealthiest 1 percent. The day of reckoning has now come as the GOP spells out how it will rein in the nation’s spiraling deficit through its recently released FY 2019 budget resolution. On Tuesday, the House Budget Committee unveiled its 85-page budget resolution, making trillions in spending cuts to Medicare and Medicaid, he nation’s two largest entitlement programs, health care, and programs benefiting veterans, students and working families. ‘

The budget titled, “A Brighter American Future,” calls for $8.1 trillion of deficit reduction while including reconciliation instructions for 11 House authorizing committees to enact at least $302 billion over nine years. Consistent with levels signed into law in February 2018, this budget sets topline discretionary spending at $1.24 trillion ($647 billion for defense spending and $597 billion for non-defense discretionary spending).

The budget blueprint cleared the House Budget Committee by a partisan vote of 21-13, with a vote, with a Democratic and Republican lawmaker absent from the vote. Political insiders Fortunately, Capitol Hill-watchers say the 2019 House GOP Budget proposal is unlikely to make it before the full House or pass this year. But, it sends a message out to voters about the Republican’s legislative priorities to rein in a skyrocketing deficits and debt by slashing entitlement and popular domestic programs.

Putting the Wealthy and Powerful Ahead

When unveiling the House GOP’s budget, Chairman Steve Womack of Arkansas, notes that it addresses “unsustainable mandatory spending, continues economic growth, encourages better government and greater accountability, and empowers state and local governments.”

During a CNBC interview on June 22, 2018, Womack said, “We have done our job and it is a reflection of what we believe is the stark reality of the fiscal condition of our country right, unstable deficits year over year and $21 trillion in debt that is going to continue to grow over time. We just felt like it was time to sound the alarm and do something about and this and this particular budget resolution does it.”
Democratic Policy and Communications Committee Co-Chair David N. Cicilline counters Womack’s rosy assessment of the House GOP budget. ““If a budget is a statement of your values, then this budget shows Republicans are putting the wealthy and powerful ahead of working people. Just a few months after passing a massive tax cut for billionaires and corporate special interests, Republicans are proposing to repeal the Affordable Care Act; cut funding for road repairs and other infrastructure projects; cripple Medicare and Social Security; make deep cuts to Pell grants; and repeal Dodd-Frank so the big banks can do whatever they want once again. In fact, this budget is so terrible, it’s hard to imagine Republicans will ever bring it to the floor,” says the Rhode Island lawmaker.

“But despite an extraordinary past and a booming economy thanks to tax reform, there are real fiscal challenges casting a shadow of doubt on the nation’s future, including $21 trillion of debt that is rapidly on the rise. We must overcome the challenges,” says Womack.

Womack says that his budget plan “offers a balanced and responsible plan to not only address the challenges but give rise to the nation’s prosperity.”

Medicare and Medicaid on Budgetary Chopping Block

Numerous federal programs affecting old Americans would be put on the budgetary chopping block, which includes another call for full repeal of the Affordable Care Act (ACA), leaving 23 million Americans without health coverage. $5.4 trillion of cuts would come from mandatory or automatic spending programs such as Medicare and Medicaid. The plan calls for raising the Medicare eligibility age to 67, as well as combining Medicare Parts A and B, and allowing for privatization of the entitlement program. The projected cuts for Medicare alone add up to $537 billion.

The GOP’s efforts to privatize Medicare runs counter to what Americans want, preserving the program in its current form. The Kaiser Family Foundation released poll results in 2015, celebrating Medicare’s 50th Anniversary, the respondents by a margin of more than two to one, do not want to see their traditional Medicare privatized.

As to Medicaid, a joint federal and state program that helps with medical costs for some people with limited income and resources, the GOP budget plan limits per capita payments and allows states to turn it into a block grant. It also introduces stricter work requirements for beneficiaries and shifting to a capped system linked to medical inflation rates, these changes cutting about $1.5 trillion. Additionally, Womack’s budget would no longer allow people on Social Security disability to receive unemployment insurance at the same time, slashing $4 billion for the FY 2019 budget.

Outside of mandatory spending programs, the budget would cut trillions from “welfare,” federal retirement programs and veterans programs, while overhauling rules for medical liability lawsuits.

“This budget proposal is a direct attack on the quality of life of America’s seniors,” said Robert Roach, Jr., President of the Alliance of Retired Americans. “We must hold our elected officials accountable for their actions. We predicted cuts to our hard-earned benefits after the GOP passed their unfunded tax cuts for billionaires and corporations. Unfortunately, that reality is now staring us in the face,” he says.

Adds Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, “Speaker Ryan is obviously making good on his promise to come after safety net programs to pay for the reckless Trump/GOP tax reform. In so doing, he and his party are sending a clear message: older, poorer, and disabled Americans are not as important as the billionaires and big corporations who are the main beneficiaries of a tax scheme that is blowing up our nation’s debt.”

Before the House Budget Committee vote, Joyce A. Rogers, AARP’s Senior Vice President Government Affairs, urged that Medicare not be cut. She called for good changes such as “reducing prescription drugs costs, enhancing payment and delivery reforms, and addressing the widespread fraud, waste, and abuse in the program.”

According to Rogers, “The typical senior, with an annual income of approximately $26,000 and already spending one out of every six dollars on health care, counts on Social Security for the majority of their income, and on Medicare for access to affordable health coverage.”

Finally, Rogers notes that the Supplemental Nutrition Assistance Program (SNAP) plays vital role in providing nutritional assistance to millions of eligible, low-income individuals and families, many seniors. “In 2016, 8.7 million (over 40 percent of) SNAP households had at least one adult age 50 or older. Proposals to block grant the program, or expand work requirements, will make SNAP less responsive and accessible in times of need,” she says.

Educate Yourself About the Issues

With the upcoming Rhode Island primary on September 12, and midterm elections just 135 days, AARP Rhode Island State Director Kathleen Connell urges all registered Rhode Island voters to review candidates’ positions on the issues and go to the polls and cast your ballot. “The 2018 midterms will be among the most historic elections in a generation,” she said.

Nationwide, the balance of power in both houses of Congress, as well as in many state legislatures and governorships, could shift because of the results in the fall’s general elections, says Connell.

While the most common way to vote is for registered voters to go to their local polling place on Election Day, Connell said that many family caregivers and others who may have difficulty voting on that day may be eager to take advantage of other methods of casting a ballot.

“With all that unpaid family caregivers have on their plates each day, it can often be hard for them to get to the polls on Election Day,” said Connell. “If a caregivers’ loved one is voting, it can be even harder, especially if their loved one has mobility issues. When available, alternative methods of casting a ballot (a mail ballot) are essential to allowing our state’s family caregivers and others to participate in this important election.” To learn more about mail ballots, visit https://vote.sos.ri.gov/

To mobilize it’s 35 million members, AARP has launched “Be the Difference. Vote,” a campaign designed to maximize the political influence of over age 50 voters. The initiative seeks to get the largest possible turnout of older voters to the polls during the ongoing primaries and in the November general election. It will also put front and center issues like Medicare security and family caregiving, along with other topics of particular interest to older voters.

To learn more about “Be the Difference. Vote,” check out aarp.org/vote to see how to get involved and state informed.

Bipartisan Fix Needed to Ensure Solvency of Social Security, Medicare

Published in the Woonsocket Call on June 10, 2018

On June 5, 2018, the Social Security and Medicare trustees released their annual report to Congress providing a snapshot of the long-term financial security of Medicare and Social Security, two of the nation’s two large entitlement programs. It was not good news for lawmakers. Nor for the 67 million people who receive retirement, or disability benefits from Social Security and for 58.4 million on Medicare.

The 2018 Social Security Trustee’s Report to Congress, prepared by nonpolitical actuaries and economists, warned that the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected in last year’s Annual Report, with 79 percent of benefits payable at that time.

According to the Annual Report’s findings, the OASI Trust Fund is projected to become depleted in late 2034, as compared to last year’s estimate of early 2035, with 77 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2032, extended from last year’s estimate of 2028, with 96 percent of benefits still payable.’

As to Medicare, the Medicare trustee’s report predicted that the Medicare hospital program will not be able to pay full benefits in 2026. The Trustees, for a second year in a row, issued a Medicare funding warning due to general revenue funding expected to exceed 45 percent of total Medicare outlays within 7 years, triggering a requirement for the President to submit to Congress in 2019 legislation to address warning to be considered on an expedited basis.

Released Report Triggers Discussion on Social Security, Medicare, Solvency

Media across the country reported the Social Security and Medicare trustees warning about long-term financial issues facing Social Security and Medicare. Just read the New York Time’s headline: “Medicare’s Trust Fund is Set to Run Out in 8 Years. Social Security.” Here’s CNN’s take: “Social Security Must Reduce Benefits in 2034 if Reforms Aren’t Made.” Or take a look at the New York Daily News’s attention-grabbing headline, “Social Security and Medicare Head Toward the Skids.”

With the release of the 2018 Annual Report, the powerful House Ways and Means Committee Chairman Kevin Brady (R-TX), called for ensuring the financial solvency of Social Security and Medicare. “The time is now to come together in a bipartisan manner to address these real challenges, he said.

Health Subcommittee Chairman Peter Roskam (R-IL) also gave his two cents. “The Medicare Trustees paint an even bleaker picture than last year, pointing to the need for commonsense reforms to ensure this critical safety net program continues to deliver health care to our nation’s seniors and individuals with disabilities,” said Roskam. “The solutions are not elusive as was demonstrated in part earlier this year when Congress acted on key Medicare reforms contained in the Bipartisan Budget Act of 2018 to improve access and quality in the Medicare program, but more work remains to be done. This warning from the Trustees is a sobering marker of the work ahead to ensure this program is around for our children and grandchildren,” he said.
Looking at the Glass Half-Full, not Half-Empty

Even with the bleak findings, the National Committee to Preserve Social Security and Medicare and other aging advocacy groups have their take.

Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), notes the released Annual Report confirms that the Social Security’s trust fund is “still very much intact, with $2.89 trillion in assets – or $44 billion more than last year.”

There is still time for Social Security fixes, says Richtman. “The Trustees have confirmed that Congress has ample time (16 years) to enact modest and manageable changes to Social Security to address the fiscal shortfall. Most Americans agree that raising the payroll wage cap is the easiest and most effective way to strengthen Social Security’s finances, negating the need for harmful benefit cuts like means testing or raising the retirement age,” he said.

According to NCPSSM, since 2013 there has been a growing number of aging groups [along with Democratic lawmakers] calling to lift the wage cap and increase Social Security benefits. The Washington, DC-based NCPSSM’s Boost Social Security Now campaign endorses legislation in Congress introduced by Senator Bernie Sanders (I-VT), Rep. John Larson (D-CT) and others, which keeps the Social Security Trust Fund solvent well into this century, while boosting benefits and cost-of-living adjustments (COLAs).

On Medicare, the Trustees report shows that the Part A Trust Fund will be able to pay full benefits until 2026, at which point payroll taxes are estimated to be sufficient to cover 91% of benefits – if nothing is done to bolster the system’s finances, says Richtman, noting that NCPSSM supports several measures to keep Medicare financially sound, including a genuine push to allow the program to negotiate drug prices with pharmaceutical companies.

NCPSSM calls for restoring rebates the pharmaceutical companies formerly paid the federal government for drugs prescribed to “dual-eligibles” (those who qualify for both Medicare and Medicaid), in addition to innovation in the delivery of care and in the way, care is paid for – to keep Medicare fiscally sound for future beneficiaries.

AARP CEO Jo Ann Jenkins urges Congress to work “in a bipartisan manner to strengthen these vital social insurance programs to ensure they can meet their benefit promises for current and future generations.” She agrees with Richtman about the need to rein in rising Medicare pharmaceutical costs. “In particular, we need to take further steps to lower the cost of health care, especially the ever-rising price of prescription drugs. No good reason exists for Americans to continue paying the highest brand name drug prices in the world. High-priced drugs hurt Americans of all ages, and seniors, who on average take 4.5 medications a month, are particularly vulnerable,” she said.

Nancy Altman, President of Social Security Works and the Chair of the Strengthen Social Security Coalition, calls for strengthening and expanding Social Security not cutting it.

The Social Security program is “fully affordable,” says Altman, noting that “poll after poll shows that the American people overwhelmingly support expanding the program’s benefits.” Politicians are listening, too, she said.

“Social Security is a solution to our looming retirement income crisis, the increasing economic squeeze on middle-class families, and the perilous and growing income and wealth inequality. In light of these challenges and Social Security’s important role in addressing them, the right question is not how we can afford to expand Social Security, but, rather, how can we afford not to expand it,” says Altman.

It’s Time for a Bipartisan Fix

As the mid-term election approaches, it’s time for the Republican congressional leaders to work with their Democratic colleagues to craft bipartisan legislation to make permanent long-term fixes to Social Security and Medicare to ensure these program’s fiscal solvency for future generations.

It is projected roughly 10,000 Baby Boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 19 years. By the time the last of this generation approaches retirement age in 2029, 18 percent of the U.S. will be at least that age, reports the Pew Research Center.

With the graying of American, the hand writing is on the wall. With the release of this year’s report by the Social Security and Medicare trustees, Congress must decisively act now to ensure that Social Security and Medicare are strengthened, expanded and benefits not cut. As Chairman Brady, of the House Ways and Means Committee, says, it is now time to address these real challenges. Hopefully, his House colleagues and lawmakers in the upper chamber will agree.

Trump’s Budget Proposal Comes ‘Dead on Arrival’ to Aging Groups

Published in Woonsocket Call on February 18, 2018

Last Monday, President Donald Trump released his 2019 budget proposal, “An American Budget,” providing guidance to Congress on how to spend hundreds of billions of dollars in new federal spending plan authorized by the Bipartisan Budget Act recently passed into law. Trump’s federal spending wish list clearly shows that many programs and services for older Americans will take a huge hit if any of these proposals are picked up by the Republican-controlled Congress.

The Washington, DC-based National Committee to Preserve Social Security and Medicare (NCPSSM) expresses concern that Trump’s budget proposal contains many of the same harmful proposals that the Administration and Republican-controlled Congress has pushed before, including $1.4 trillion in Medicaid cuts, $490 billion in Medicare cuts, and repeal of the Affordable Care Act.

Social Security on the Chopping Block

According to the NCPSSM’s analysis released this month, the President’s budget blue print calls for deep cuts to Social Security Disability Insurance, breaking his campaign promise not to touch Social Security.

Trump proposes to slash up to $64 billion from Social Security Disability Insurance (SSDI) benefits through eight demonstrations “ostensibly” geared toward helping disability beneficiaries to stay at work or return to work, says NCPSSM, noting that these Social Security Administration’s (SSA) demonstration projects, established in 1980, had only “a modest effect on beneficiaries’ workforce participation.”

NCPSSM’s analysis warns that the President’s proposed budget also calls for other benefit cuts for disabled seniors, including limiting the retroactivity of applications for disability benefits from 12 months to six months. It would also deny unemployment compensation payments to SSDI beneficiaries who work but get laid off. Social Security Income recipients that live together, even with families, would see their benefits reduced, too.

The Trump Administration also proposes $12.393 billion for SSA’s FY 2019 appropriation for administrative funding, says NCPSSM, warning that this $89 million funding cut will result in longer waits for decisions on initial disability claims and time to speak to a representative from SSA’s 800 number. “With 10,000 baby boomers reaching age 65 every day, SSA needs substantial yearly increases just to keep pace with increased workloads, says NCPSSM.

President Trump’s budget plan only funds production and mailing of only 15 million Social Security statements. “This proposal is part of SSA’s overall plan to limit sending statements only to individuals who are 60 or older rather than sending them to all workers every five years,” says the aging advocacy group, urging the Administration “to send these important financial planning documents to all workers, as is required in section 1143 of the Social Security Act.”

Medicare Takes a Blow

President Trump’s draconian budget calls for over $500 billion in cuts to Medicare, many of these savings coming from cuts to Medicare providers and suppliers. This is another campaign promise broken.

NCCPSSM warns that President Trump’s 2019 budget proposal also includes policy changes to the prescription drug benefit that would impact Medicare’s spending and beneficiary costs. It would create an out-of-pocket maximum for Part D. Medicare t beneficiaries with very high drug costs would no longer have cost sharing responsibility once they hit the catastrophic threshold. This would add $7.4 billion in costs over 10 years.

Trump’s budget proposal would also change the way the threshold for moving out of the coverage gap or “donut hole”” is calculated that would make it more costly to seniors to move through it. “Taken together with an out-of-pocket cap, it will mean savings for some seniors with very high drug costs, but costs will climb for a larger number of seniors. This saves $47.0 billion over 10 years,” reports NCPSSM.

Finally, Trump’s 2019 budget proposal saves $210 million over 10 years by eliminating the cost-sharing on generic drugs for low-income beneficiaries.

Hurting Medicaid Recipients

In FY 2015, federal and state governments spent about $158 billion or 30 percent of Medicaid spending on long-term services and supports (LTSS). The federal and state partnership pays for about half of all LTSS for older adults and people with disabilities.

The President’s 2019 budget proposal slashes the program’s funding by changing the structure of the program into either a per capita cap or Medicaid block grant, with a goal of giving states more flexibility of managing their programs. Through 2028, the president’s budget would cut $1.4 trillion from the Medicaid program through repealing the Affordable Care Act, restructuring the program.

NCPSSM expresses concern that if states lose money under per capita caps or block grants, state law makers would have to make up the funding themselves if federal funds do not keep up with their Medicaid population’s needs. This can happen by either by cutting benefits and/or limiting eligibility, requiring family members to pick up more nursing home costs, or scaling back nursing home regulations that ensure quality, service and safety protections.

And That’s Not All

NCPSSM’s analysis says that Trump’s budget proposal also calls for the elimination of the Older Americans Act Title V Senior Community Service Employment Program (SCSEP). The program, funded $ 400 million in FY 2017. provides job training to nearly 70,000 low-income older adults each year.

Community Services Block Grants ($715 million), the Community Development Block Grant ($3 billion) and the Social Services Block Grant ($1.7 billion) programs are also targeted to be eliminated. Some Meals on Wheels programs rely on funding from these federal programs, in addition to OAA funding, to deliver nutritious meals to at-risk seniors.

Trump’s 2019 Budget proposal would also eliminate funding for the Low-Income Home Energy Assistance Program (LIHEAP) This program received $3.39 billion in FY 2017. “Of the 6.8 million households that receive assistance with heating and cooling costs through LIHEAP each year, 2.26 million or one-third are age 60 or older,” says NCPSSM.

Trump’s budget plan also eliminates funding for Senior Corps programs including the Retired and Senior Volunteer Program, Foster Grandparents and Senior Companions. Current Senior Corps funding at the FY 2017 level is $202.1 million. “These programs enable seniors to remain active and engaged in their communities, serving neighbors across the lifespan, and benefitting their own health in the process. In 2016, 245,000 Senior Corps volunteers provided 74.6 million hours of service,” says NCPSSM. .

Finally, research into cancer, Alzheimer’s Parkinson’s and other diseases affecting older persons will be negatively impacted with $ 46 million in funding cuts to National Institute on Aging at the National Institutes of Health.

Aging advocacy groups view Trump’s second budget “flawed,” jam-packed with “damaging policies” for Congress to enact with an aging population. It’s “Dead on Arrival.” If Trump and GOP lawmakers choose not to listen to their older constituents, the results of the upcoming mid-term elections might just get their attention.

Aging Groups Fear that Deficit May Lead to Attacks on Entitlement Programs

Published in Woonsocket Call on January 21, 2018

In early December, the GOP-controlled Senate passed by a partisan vote of 51 to 49 its sweeping tax rewrite, sending the $1.5 trillion tax package, detailed in a 492 page bill, to the Conference Committee to iron out the differences between the Senate and House bills. The House’s Tax Cuts and Jobs Act (H.R. 1), was passed by a 227-to-205 vote on November 16, 2017. Congress ultimately passed the Conference Committee’s revised tax bill, sending it to President Trump’s desk for signature. While the new tax law has a few positive provisions for seniors, aging groups predict a frontal assault by the GOP-controlled Congress and White House in 2018 to make cuts on Medicare, Medicaid, and Social Security to balance to ballooning federal deficit.

Just days before President Trump signed into law on December 22, 2017, the Tax Cuts and Jobs Act (P.L. 115-97), considered to be the biggest tax reform overhaul in over 30 years, AARP’s Chief Executive Officer, Jo Ann C. Jenkins, sent a letter to Congress raising the Washington, DC-based aging groups concerns with the law’s significant shortcomings as well as highlighting its impact “on the nation’s ability to fund critical priorities.”

Putting Medicare on the Chopping Block

In December 19 correspondence, Jenkins noted that AARP opposed the tax bill because of its negative impact on older adults. She expressed concern that there would be increased calls for greater spending cuts in Medicare, Medicaid and other domestic programs serving older Americans, with the tax legislation increasing the nation’s deficit by $1.5 trillion over the next ten years (with an unknown amount beyond 2027).

“Indeed, the non-partisan Congressional Budget Office (CBO) has confirmed that unless Congress takes action, the reconciliation legislation will result in automatic federal funding cuts of $136 billion in fiscal year 2018, $25 billion of which must come from Medicare,” said Jenkins. With the tax legislation’s repeal of Obamacare’s individual mandate, health care premiums would increase by 10 percent (with 64-year olds paying an average increase of $1,490) and there would be 13 million fewer Americans with health coverage, says Jenkins, citing a CBO’s analysis of the tax legislation.

However, AARP did appreciate that the Tax Cuts and Jobs Act retained the medical expense , deduction and restored the 7.5 percent income threshold for all tax filers for two years, said Jenkins, noting that “almost three-quarters of tax filers who claimed the medical expense deduction are age 50 or older and live with a chronic condition or illness, and seventy percent of filers who claimed this deduction have income below $75,000.”

Finally, Jenkins also said that the Tax Cuts and Jobs Act retained the additional standard deduction for those age 65 and older, as well as rejected proposals to make significant changes to the tax treatment of retirement contributions, which would have negatively affected the ability many tax filers to save for their retirement.

Targeting Social Security, Medicare, and Medicaid

Like Jenkins, the Washington, DC-based National Committee to Preserve Social Security and Medicare also sees Medicare, Medicaid and Social Security becoming more vulnerable to benefit cuts due to the huge $1.5 trillion increase in the public debt resulting from the enactment of the GOP’s tax law.

According to the NCPSSM’s Government Relations and Policy staff in a January 2018 policy brief, key supporters of the Tax Cuts and Jobs Act made it very clear that Medicare, Medicare and Social Security, would be targeted to balance the federal budget immediately after its approval. “For example, Senator Marco Rubio (R-FL) said that the tax bill is just the first step before “…instituting structural changes to Social Security and Medicare…” benefits to reduce the federal deficit. Similarly, House Speaker Paul Ryan (R-WI) said that “we’re going to have to get back next year [2018] at entitlement reform, which is how you tackle the debt and the deficit.” In other words, the majority leadership will seek cuts to Medicare, Medicaid and Social Security benefits as the next step to pay for the deficits this tax bill will create,’ NCPSSM’s policy brief.

In 2018, NCPSSM anticipates that the GOP-controlled Congress will seriously look at privatizing Medicare, raising the Medicare eligibility age, increasing beneficiary out-of-pocket costs, expand means testing of Medicare premiums, and block granting Medicaid, as a way to reducing the huge federal debt.

NCPSSM says that under the GOP’s Medicare privatization plan, when people become eligible for Medicare benefits they would not enroll in the current traditional Medicare program, which provides guaranteed benefits, but would receive a voucher to purchase private health insurance or traditional Medicare through a Medicare Exchange. The voucher’s amount would be determined annually when private health insurance plans and traditional Medicare participate in a competitive bidding process.

Medicare costs could also be cut by gradually increasing the eligibility age of Medicare to correspond with Social Security’s retirement age which is increasing from 65 to 67. Although this GOP strategy would initially save money, it would increase “system-wide health spending for everyone else,” warns NCPSSM.

NCPSSM says that “savings from redesigning the Medicare benefit [to reduce the federal deficit] by combining the Part A and Part B deductibles and making changes to supplemental insurance (Medigap) policies, would likely increase costs for people with Medigap policies.”

In 2018, the GOP Congress also might even consider expanding means-testing of Medicare premiums to reduce the federal deficit, says NCPSSM. “Expand income-related premiums under Medicare Parts B and D until 25 percent of beneficiaries are subject to these premiums [would reduce costs]. A Kaiser Family Foundation study found that this proposal would affect individuals with incomes equivalent to $45,600 for an individual and $91,300 for a couple in 2013,” says NCPSSM’s policy brief.

Medicaid provides funding for health care to low-income seniors, people with disabilities, children and some families. “We anticipate [GOP] proposals will be made that would end the current joint federal/state financing partnership and replace it with per capita caps (or a block grant, at state option) giving states less money than they would receive under current law,” says NCPSSM’s policy brief, noting that repealing the Medicaid expansion under Obama’s Affordable Care Act would prevent low-income adults from accessing health care services.

Concerns Over Fast-Track Reforming Social Security

Finally, NCPSSM’s policy brief warns that GOP lawmakers might push for a “fast-track” procedure that would lead to cutting social security benefits. This proposal would require the President to submit a plan to be considered in Congress under “expedited procedures” to reform Social Security if the Social Security Trustees determine the Trust Funds do not meet a 75-year actuarial balance. NCPSSM views this proposal “as a way that to circumvent public scrutiny of proposals to reduce Social Security programs.”

NCCPSSM also anticipates a GOP proposal to eliminate concurrent receipt of unemployment insurance and Social Security Disability Insurance (SSDI) for beneficiaries who work, get laid off and as a result qualifies for Unemployment Insurance.

Last month, the GOP-controlled Congress and White House enacted the largest tax reform bill. AARP, NCPSSM and other aging advocacy groups warn that Social Security, Medicare and Medicaid will be targeted by the GOP lawmakers to balance the tax reform law’s $1.5 billion costs. Older voters must now become politically active in protecting and strengthening these programs for both current beneficiaries and future generations” With the looming 2018 mid-term elections, may be Congress might just listen.

Medicare Takes a Blow Under GOP’s Major Tax Plan Fix

Published in the Woonsocket Call on December 10, 2017

In early December, the GOP-controlled Senate passed by a partisan vote of 51 to 49 its sweeping tax rewrite (with Republican Senator Bob Corker of Tennessee siding with the Democrats and opposing the measure), sending the $1.4 trillion tax package, detailed in a 492 page bill, to the Conference Committee to iron out the differences between the Senate and House bill, Tax Cuts and Jobs Act (H.R. 1), that was passed by a 227-to-205 vote on November 16, 2017.

While Democrats are technically part of the conference committee, Republicans are yet again hashing out the details behind closed doors on a purely partisan basis. Democrats charge that the GOP lawmakers on the conference committee will look to rubber-stamp whatever their leadership comes up with and do not expect to see any changes to the legislation for the better.

The cores of the House and Senate bills are already very similar: tax cuts for the wealthiest and corporations paid for by middle-class Americans. Republicans are rushing to get legislation to President Donald Trump’s desk for his signature before Christmas. While Trump looks forward to the first major legislative accomplishment of his presidency (once signed into law) as a Christmas gift to the nation, those opposing the massive changes to the nation’s US tax code view it as a stocking stuffed with coal.

Congressional insiders expect to see a finalized tax bill in the coming days, and votes in the House mid-next week at the earliest.

Medicare Takes a Blow

U.S. Senator Sheldon Whitehouse, sitting on the Senate Special Committee on Aging, sees the writing on the wall with the passage of the GOP tax bill. “The Republican tax plan would run up huge deficits, trigger immediate cuts to Medicare, and threaten Social Security and Medicaid down the line,” says the Rhode Island Senator.

Adds, Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), this forces the “the poor, middle class, and elderly to pick up the tab for trillions of dollars in tax breaks that the super-rich and profitable corporations do not need..” If enacted, the GOP tax fix triggers an automatic $25 billion cut to Medicare,” he warns, noting that “it blows a $1 trillion hole in the deficit, inviting deep cuts to Social Security, Medicare, and Medicaid.”

Richtman says, “adding insult to injury” both the GOP Senate and House tax bills repeal the Obamacare mandate, which will raise ACA premiums for older adults (age 50-64) by an average of $1,500 in 2019. He notes that the Senate tax bill uses the “Chained CPI” inflation index for calculating deductions and tax brackets, this “setting a dangerous precedent that could spill over into cost-of-living adjustments for Social Security.”

In her December 7 correspondence to Congressional leadership, AARP Chief Executive Officer Jo Ann Jenkins, representing millions of members who whose health care depends on Medicare, urged lawmakers to work together in a bipartisan fashion to enact tax code legislation that would meet the needs of the older population and arrive at a tax code that is “more equitable and efficient, promotes growth, and produces sufficient revenue to pay for critical national programs, including Medicare and Medicaid.”

Jenkins urged Congress to prevent $25 billion in automatic cuts to Medicare in 2018 that would result from the enactment of H.R. 1 and its $1.5 trillion deficit increase (according to the Congressional Budget Office) since it “would have an immediate and lasting impact, including fewer providers participating in Medicare and reduced access to care for Medicare beneficiaries.”

“The sudden cut to Medicare provider funding in 2018 would have an immediate and lasting impact, including fewer providers participating in Medicare and reduced access to care for Medicare beneficiaries,” said Jenkins, who warned that health care providers may choose to stop accepting Medicare patients at a time when the Medicare population is growing by 10,000 new beneficiaries each day.

Jenkins also expressed her concern that Medicare Advantage plans and Part D prescription drug plans may charge higher premiums or cost-sharing in future years to make up for the cuts now.

The Devil is in the Details

On the AARP website, Gary Strauss, an AARP staff writer and editor, posted an article on December 6, 2017, “Your 2018 Taxes? Congress Now Deciding,” that identifies specific GOP tax bill provisions that hit older tax payers in their wallets.

According to Strauss, an AARP Public Policy Institute analysis also found that more than one million taxpayers 65 and older would pay higher taxes in 2019, and more than 5 million would see their taxes increase by 2027. More than 5 million seniors would not receive a tax break at all in 2019, and 5.6 million would not see their taxes decrease by 2027.

The House and Senate tax bills also have differing views on the medical expense deduction, used by nearly 75 percent of filers age 50 and older, says Strauss. The Senate plan allows taxpayers to deduct medical expenses exceeding 7.5 percent of their income rather than a current 10 percent — for the next two years. The House tax plan eliminates this deduction. Some 70 percent of filers who use the deduction have incomes below $75,000.

Strauss says that the House bill eliminates the extra standard deduction for those age 65 and up, while the Senate bill retains it. For 2017, that’s $1,250 for individuals, $1,550 for heads of households or $2,500 for couples who are both 65 and older. .

Both Senate and House versions abolish state and local tax deductions, with the exception of up to $10,000 in property taxes. Residents in high-tax states such as California, Connecticut, New Jersey and New York, would pay higher taxes, adds Strauss.

For home owners, Strauss notes that the Senate plan leaves interest deduction limits at $1 million, while the House bill lowers the mortgage interest deduction limit to $500,000 and no longer allows it to be used for second homes, says Strauss.. Individuals would also continue to get up to $250,000 tax-free from the sale of a home (up to $500,000 for couples). But, both bills require sellers to live in the property five of the eight years prior to a sale, up from the current requirement of two of the last five years,” adds Strauss.

At press time, dozens of newspapers are reporting that Americans across the nation are protesting the passage of GOP tax bill that makes the biggest changes to the U.S. tax code in 30 years, calling it a “scam.” AARP and NCPSSM are mobilizing their millions of members to protect Medicare, Social Security and Medicaid.

While Trump told Senators at a lunch meeting held on December 5 at the White House that the Republican tax plan was becoming “more popular,” two recently released polls are telling us a completely different story. According to a Gallup national poll, a majority of independents (56 percent) join 87 percent of Democrats in opposing the tax plan. Only 29 percent of Americans overall approve of the proposed GOP changes to the nation’s tax code. Reflecting Gallup’s finding, the Quinnipiac University national poll found that 53 percent of American voters disapprove of the tax plan, while only 29 approve.

With mid-term Congressional elections less than a year away, Trump and the GOP-controlled Congress continued push to dismantle Obamacare, leaving millions without health care coverage and creating a tax code that would destroy Medicare, may well bring millions of older taxpayers to the polls to clean house. We’ll see.

House Budget Committee Plan Calls for Privatization of Medicare

Published in Woonsocket Call on July 23, 2017

Over four months ago President Trump released his draconian FY 2018 Budget, now Congress begins to hammer out its budgetary spending plan. Last Wednesday, the House Budget Committee, chaired by Rep. Diane Black (R-TN), sent the Republican drafted budget plan to the House floor for consideration. After a 12-hour markup held in Room 1334 Longworth HOB, the budgetary blueprint passed by a vote of 22 to 14, along party line. Rep. Black’s GOP controlled panel defeated 28 amendments offered by Democrats.

Once the House and Senate pass their budget resolutions, the House and Senate Appropriations subcommittees “markup” appropriations bills. The House and Senate vote on appropriations bills and reconcile differences.

Rep. Black says that the GOP FY 2018 Budget Resolution, “Building a Better America,” passed on July 19, will balance the federal budget within 10 years by cutting spending, reforming government and growing the economy. According to the House Budget chair, the recently released budget achieves $ 6.5 trillion in total reduction over 10 years. It sets overall discretionary spending for the fiscal budget at $1.132 trillion ($621.5 billion in defense discretionary spending and $511 billion in non-defense discretionary spending).

The House budget plan is the first step that Republicans must take to begin their efforts to overhaul the nation’s tax code to grow the economy. It also provides increased funding for defense and the building of Trump’s border wall. It also requires food stamp recipients to work for their benefits.

Although the Social Security program is spared, it bars recipients from receiving Social Security Disability Income recipients from also receiving unemployment benefits. But, most worrisome to aging group advocates, the passed House Budget Committee budget makes major cuts to Medicaid, turning the Medicare program into a voucher program. But, Medicare is targeted for major changes.

In the Eyes of the Political Beholder

Upon passage, the House Budget Chair, Rep. Black, said in a statement, “I am proud of the work done by the members of the committee. We’ve spent months reviewing all aspects of the federal government and have put together a plan that will balance the budget, promote economic growth, strengthen our national defense, and make Washington more accountable to taxpayers. Our budget also takes the crucial first step in the reconciliation process to fix our broken tax code and make long overdue mandatory spending cuts and reforms.”

But, Rep. John Yarmuth (D-KY), Ranking Member of the House Budget Committee, in a statement expressed a vastly different opinion as to the impact of the panel’s passed budget resolution. “Republicans on the House Budget Committee just approved a budget that the American people do not want and do not deserve from their government. Their budget adopts the worst extremes of the Trump proposal by cutting taxes for millionaires and billionaires at the expense of everyone else. It cuts at least $1.5 trillion from Medicare and Medicaid, and puts at risk investments in nearly every national priority, from education and veteran services, to transportation, environmental protections, and medical research. Democrats believe we should be investing in the American people, our economy, and greater opportunity for all, and we will continue to fight against this irresponsible budget when—or if—it is brought to the House floor,” he said.

House Budget Plan Calls for Substantial Changes to Medicare

Medicare takes a huge hit, $ 487 billion over a ten-year period, in the House Budget Committee’s passed FY 2018 Budget, says Paul N. Van De Water, in a blog post on the website of Center on Budget and Policy Priorities (CBPP). The Senior Fellow serving as CBPP’s Director, Policy Futures, says that the budget plan’s changes to Medicare include higher income-related premiums for those making $85,000 and over (twice the amount for couples), limits on malpractice awards, raising Medicare’s eligibility age from 65 to 67, also increasing cost sharing of beneficiaries.

In his posting, Van De Water details the substantial changes made to Medicare, one of the nation’s largest entitlement programs, in the House Budget Committee’s passed budget. He notes, it would “replace Medicare’s guarantee of health coverage with a flat premium support payment or voucher, [starting in 2024] that beneficiaries would use to help buy either private health insurance or a form of traditional Medicare.” Although there are no details in the House Budget Committee’s plan to determine its impact on beneficiaries, he says that most people enrolled in traditional Medicare would pay more with the new changes than under the current law, according to a previous Congressional Budget Office analysis.

NCPSSM Sounds the Alarm About Privatization of Medicare

As the House Budget Committee began its markup of the FY 2018 budget, Max Richtman, President of the National Committee to Preserve Social Security and Medicare (NCPSSM) warned in a statement that the GOP-controlled panel “is targeting the health and financial well-being of America’s seniors by making another attempt to privatize Medicare.”

“Recent polling indicates that large majorities of Americans across party lines prefer that Medicare be kept the way it is, not to mention that President Trump repeatedly promised to protect the program during the 2016 campaign,” says Richtman.

Richtman says that converting Medicare into a voucher program is an existential threat to the program itself. “Over time, giving seniors vouchers to purchase health insurance would dramatically increase their out of pocket costs since the fixed amount of the voucher is unlikely to keep up with the rising costs of health care,” he says. “And, as healthier seniors choose less costly private plans, sicker and poorer seniors would remain in traditional Medicare, leading to untenable costs, diminished coverage, and an eventual demise of traditional Medicare, plain and simple. Of course, raising the eligibility age to 67 – as the House spending plan also proposes – is a drastic benefit cut.”

Undermining Medicare has been a long-held dream of fiscal conservatives. Their “premium support” proposal is a thinly veiled scheme to allow traditional Medicare to “wither on the vine,” as former House Speaker Newt Gingrich once put it,” adds Richtman.

Privatization is being sold as “improving customer choice,” but based on the way current Medicare Advantage plans work, private insurance will continue to offer fewer choices of doctors than traditional Medicare does. If traditional Medicare is allowed to shrink and collapse, true choice will disappear, too, says Richtman.

Stay tuned….

Herb Weiss, LRI’12 is a Pawtucket writer covering aging, health care and medical issues. To purchase Taking Charge: Collected Stories on Aging Boldly, a collection of 79 of his weekly commentaries, go to herbweiss.com.