Font Size

From the category archives: Medicare

New Medicare Advantage Rates Preserve Insurance Industry Subsidies...Again

For the second year in a row, America’s massive health insurance industry lobby launched a Washington lobbying and advertising blitz hoping to scare seniors into believing they’ll lose their Medicare and politicians will lose their seats if the industry’s government overpayments aren’t protected.  Mission accomplished. Rather than trimming rates, the Obama administration raised them:

“Private Medicare plans would see a 0.4 percent boost in their payment rates for 2015 under a final rate announcement made by Centers for Medicare and Medicaid Services officials Monday.

Officials with Medicare said the better-than-expected news for insurers came about in part as a result of healthier enrollees signed up for both Medicare Advantage and traditional fee-for-service plans, which means less of a cost burden on the health insurance system for the aged.” Congressional Quarterly

When CMS says “in part” what they aren’t mentioning is the part where the administration basically caved (for the second year in a row) to the insurance industry’s million dollar lobbying blitz to keep its billions of dollars of federal overpayments intact.   

“Today’s announcement by CMS to, once again, preserve government overpayments to private insurers in Medicare Advantage is bad policy and bad economics for the Medicare program. These subsidies were supposed to be gradually trimmed in order to expand benefits and improve the quality of care for all seniors in Medicare. However, each year the insurance lobby threatens to cancel coverage or charge more to seniors in MA plans rather than accept a reduction in their overpayments or reimbursement rates. 

For many years, private insurance companies have claimed they can provide better coverage to seniors at a lower cost.  The reality proves otherwise.  Since 2003, all seniors in Medicare (including those not even enrolled in Medicare Advantage) have paid higher premiums to help fund the billions in government overpayments to private Medicare Advantage insurance companies.  Over the years, as much as 14% more per beneficiary has been paid to MA plans than is paid to cover individuals enrolled in traditional Medicare.  It’s a wasteful federal boondoggle that was rightfully corrected by passage of the Affordable Care Act (ACA) in 2010.  Additionally, thanks to the ACA, growth in health care costs have been decreasing which means that reimbursement rates also go down.   As reimbursement rates have decreased, MA plan enrollment has increased. 

Let’s be clear, contrary to the health insurance industry’s massive lobbying campaign claims, Medicare doesn’t make the decision about cuts to seniors’ MA coverage, including increasing premiums or reducing access to doctors. That decision rests squarely in the board rooms of the nation’s private insurance industry, which is unwilling to give up a penny of their government giveaway in favor of continued threats of diminished coverage and higher premiums for seniors.

This annual drama with private insurers in Medicare proves, once again, that when private MA plans are unwilling to compete on a level playing field with traditional Medicare, seniors will ultimately pay the price. So much for providing better coverage for less.”...Max Richtman, NCPSSM President/CEO 

How About Giving the Truth about Social Security "Equal Time"

Attempts to reignite the intergenerational warfare campaign against Social Security --  led by the billion dollar austerity lobby -- seem to have hit a new high.  Alternet highlights just a few of the recent instances:

A string of recent examples—rants [3] from MSNBC’s wealthy young commentator, a notorious elderly-attacking [4] House candidate, think tanks promoted [5] on NPR—generational warfare cheerleaders are proclaiming that America is heading toward an epic and immoral conflict as better-off seniors are robbing millennials of shrinking federal dollars because retirement programs cost too much. That’s simply false, as Social Security is solvent [6] through 2033, and spending on all mandatory programs as a percentage of GDP is close to [7] where it’s been since 1975, at 21 percent. 

This line of attack isn’t in a political vacuum. It comes as some Democrats are reframing [8] the debate on Social Security and campaigning [9] for increased benefits. Nor is it a new argument, as a right-wing club of libertarians, Wall Street bankers and deficit hawks have tried for decades to undermine and privatize the program.

For MSNBC’s, Abby Hunstman, this is the second time in as many weeks that she’s taken to the airwaves with a monologue chock-full of errors and political rhetoric heavy of drama and light on the facts.  NCPSSM’s Equal Time, joined the Los Angeles Times and others in pointing out just a few of those errors in her first attempt to “educate” millennials:

Millennials Face Big Problems – Abby Hunstman, MSNBC

 “Here’s the reality, at the rate we’re spending, the system (Social Security) will be bankrupt by the time you and I are actually eligible to get these benefits.”

“We can’t afford it.”

“While we’re living two decades longer we haven’t made any changes.”

MSNBC anchor Abby Huntsman (daughter of GOP Presidential Candidate Jon Huntsman) clearly misunderstands Social Security’s funding  and twists both life expectancy data and worker ratios to the breaking point to build a false case for cutting Social Security benefits for millennials.   Contrary to Huntsman’s claims, there is not a single scenario or economic projection in which Social Security goes bankrupt, most  Americans aren’t living 20 years longer and there have been numerous reforms to Social Security in the past,  including raising the retirement age.

If Washington does nothing at all by the time the Trust Fund is depleted in 2033, millennials and generations after them will receive a 25% benefit cut.  Huntsman urges raising the retirement age to 70-75 on top of that which means an even larger benefit cut for our children and grandchildren.  Unfortunately, rather than educating her fellow millennials with the facts,  her “fix” for Social Security comes straight from the multi-billion dollar anti-entitlement lobby’s talking points.   There are ways to fill the funding gap without hitting future generations with huge benefit cuts. Rather than gutting Social Security under the guise of “fixing it”, Congress should lift the payroll tax cap and enact other meaningful reforms to strengthen the program for future generations. 

Inexplicably, rather than address her mistakes Huntsman then chose to double-down on them with a second error-laden missive.  Michael Hiltzik with the Los Angeles Times tried, a second time, to help her with the “basic math” she claims to understand:

Huntsman complained that I called her out for asking how we're going to pay the rising costs of the health and social insurance programs, as though "even raising the question means you're automatically anti-Social Security or against the elderly."

No. I called her out for raising the question using bogus numbers, such as life-expectancy rates from birth, which have risen sharply since the '30s but aren't relevant to Social Security's fiscal health. Instead, the key figure is life expectancy from age 65, which hasn't risen very sharply. (Huntsman appears to accept this point.)

Huntsman offered several possible remedies for rising costs in these programs -- means-testing benefits, increasing the retirement age, raising the Medicare eligibility age to 67 from 65 -- and complained that we're not even debating these options.

That's where she really goes off the rails. We have been debating those options, for years. They've all been studied, measured, calculated and scored. The reason they haven't been implemented is that none of them is simple. None of those she listed would have an appreciable positive effect on the fiscal health of the programs, and some, such as raising the Medicare eligibility age, might make the overall federal budget picture worse.

Economist Dean Baker also gave it a try:

“The far greater risk to the living standards to the people of Huntsman's generation is the risk that we will continue to see the upward redistribution of income over the next three decades that we have seen over the last three decades. As a result of this upward redistribution of income, people like Ms. Huntsman's father have benefited enormously, while most workers have seen little or none of the gains from economic growth. If this pattern continues then most people in Ms. Huntsman's cohort will not fare well financially even if we eliminated their Social Security taxes altogether.”

So Huntsman continues to take her cues directly from the billion dollar Wall Street campaign to paint Social Security & Medicare as the biggest threat to future generations while ignoring the income inequality which will curse millennials for a lifetime.  


Seniors and Poverty

The Kaiser Family Foundation has produced a wonderful new video, Old and Poor: America’s Forgotten.  It was debuted at this week’s Senate Special Committee on Aging hearing examining the war on poverty and seniors.  We consider this a must-watch, must-share video.


There’s Good News and Bad News for Seniors in the President’s Budget Plan

2015 Budget Reaction from National Committee to Preserve Social Security and Medicare President/CEO, Max Richtman

“While the President’s budget thankfully no longer includes cuts to Social Security, his 2015 plan unfortunately still targets seniors by shifting more costs to Medicare beneficiaries through increased means-testing, premium hikes and co-pays. While some tout increasing means testing in Medicare as a way to insure ‘rich’ seniors pay their share, the truth is, the middle-class will take this hit too.

Medicare has already been means-tested since 2007 and the number of beneficiaries subject to higher premiums has been increasing.  If passed, this means testing proposal targets even middle-class individuals with the equivalent income of just $45,600 – these are not ‘wealthy’ seniors by any measure. Shifting even more costs to seniors ignores the economic challenges many face just getting by day-to-day. It also exacerbates the retirement deficit gap millions of Americans face now and into the future.

Our nation faces a retirement security crisis.  Shifting even more costs to seniors worsens that crisis rather than addressing it head-on. While acknowledging this crisis with proposals such as myRA and automatic IRA’s, this budget focuses attention on the private sector rather than strengthening the number one source of income for many seniors, Social Security. As a nation we should be looking for ways to boost Social Security’s benefits.” Max Richtman, NCPSSM President and CEO

Good News For Social Security Beneficiaries...For a Change

In briefings by the White House today reporters were given advance looks at the President's 2015 budget.  In it are some pleasant surprises for seniors, veterans and the disabled who've been targeted with budget cuts in previous budgets.

"Last year’s Budget included policies like chained CPI - the number one policy change that Republicans had asked for in previous fiscal negotiations.  However, over the course of last year, Republicans consistently showed a lack of willingness to negotiate on a deficit reduction deal, refusing to identify even one unfair tax loophole they would be willing to close, despite the President’s willingness to put tough things on the table.  The offer to Speaker Boehner remains on the table for whenever the Republicans decide they want to engage in a serious discussion about a balanced plan to deal with our long-term fiscal challenges that includes closing loopholes for the wealthiest Americans and corporations, but the chained CPI provision will not be included in this year’s budget."  White House budget preview memo

“Reports that President Obama will not include cuts to Social Security through adoption of the Chained CPI in his 2015 budget is welcome news for millions of seniors, veterans and people with disabilities who are tired of their modest benefits being used as deficit reduction bargaining chips.  While it appears the White House has, for now, listened to the vast majority of Americans, of all ages and political parties, the President has still left the door open for more “let’s make a deal” bargaining with seniors’ benefits.  He’s taking one step forward by keeping the Chained CPI out of his budget.  We hope he won’t end up taking one step back by offering it up again later during any budget talks.

The chained CPI was a flawed idea from the start targeting both current and future retirees. It would cut benefits by 3% for workers retired for ten years and 6% for workers retired for twenty years. Three years after enactment, this translates to a benefit cut of $130 per year in Social Security benefits for a typical 65 year-old. The cumulative cut for that individual would be $4,631 or more than three months of benefits by age 75. We applaud the President for listening to members of Congress and Americans nationwide who have made the case repeatedly that cutting benefits to middle-class families is not the way to balance our books.

Unfortunately, it appears the White House will keep its plan to further means test Medicare in its 2015 budget proposal.  Further means-testing Medicare continues to undermine the social insurance nature of Medicare and ultimately raises costs for middle and lower-income seniors who depend on it.”...Max Richtman, NCPSSM President & CEO

You can read more coverage of the President's 2015 budget in this Associated Press story

Pages: Prev1234567...65NextReturn Top

Get the Latest

Indicates required fields


Questions?

Have a Social Security or Medicare question?


 

Archives
Media Contacts

Pamela Causey
Communications Director
Causeyp@ncpssm.org(202) 216-8378
(202) 236-2123 cell

Kim Wright
Assistant Director of Communications
Wrightk@ncpssm.org
(202) 216-8414

Entitled to Know

Medicare's Top 10
     

 

Copyright © 2014 by NCPSSM
Login  |  Register