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From the category archives: affordable care act

affordable care act

Hollow Victory for Trump & GOP is a Loss for Seniors, Working Americans

National Committee President and CEO Max Richtman issued the following statement after passage of the Trump/GOP tax plan::::


“Congressional Republicans have just pulled off the biggest heist in American history – transferring trillions of dollars of wealth to the rich and profitable corporations at the expense of working and middle class Americans.  By ramming this ill-considered legislation through Congress in a reckless manner, GOP members of Congress put partisanship over people and donors over constituents.  Last-minute revisions designed to woo holdout Senators – including a change benefitting real estate moguls like President Trump – tilted the bill even further toward wealthy elites.  

It is wrong to ask the poor, the working class, and elderly to pay for tax breaks for the rich and powerful, which is exactly what the Trump/GOP tax bill will do.  The tax cuts will explode the federal debt by at least $1.5 trillion, laying the groundwork for an all-out effort to cut Social Security, Medicare, and Medicaid.  House Speaker Paul Ryan and Florida Senator Marco Rubio have already promised as much in recent public statements.  Blowing up the debt for tax cuts, then claiming that there’s no choice but to cut benefits for seniors is the height of hypocrisy. As proof of Republicans’ intent, the 2018 GOP budget resolution slashes nearly $500 billion from Medicare and more than $1 trillion from Medicaid. 

The bill’s repeal of the Obamacare individual mandate will result in 13 million Americans losing coverage, and an average $1,500 hike in health insurance premiums for older adults aged 50-64.  Adopting the miserly “Chained CPI” inflation index for calculating tax brackets and deductions could easily creep into the formula for determining Social Security cost-of-living adjustments (COLAs), which would cost retirees thousands of dollars in the long run.  Unfortunately, the pleas of advocates and everyday Americans demanding that Congress abandon this cynical legislation has fallen on deaf ears. But it’s a hollow victory for the GOP. While the perpetrators of the tax scam may be popping the champagne today, next November they surely will see that voters have declared the party’s over.” 

National Committee President, House Dems Decry GOP Tax Plan’s "Dire" Impact on Seniors

As Republicans remain indifferent – or in denial – about the impact of the Trump/GOP tax scam on older Americans, seniors’ defenders are sounding the alarm.  National Committee president and CEO Max Richtman joined House Minority Leader Nancy Pelosi and other Democratic representatives in front of the U.S. Capitol today to warn of the dangers the tax plan poses to seniors’ retirement and health security. Richtman called the tax bill a “con game that should be called the ‘Washington two-step.’”

“Step one is cutting taxes for top-earning households and profitable corporations. Step two:  use the higher deficits the tax bill will create to cut critical programs, like Medicare, Medicaid and Social Security.” – Max Richtman, NCPSSM president and CEO, 12/6/17

Senator Marco Rubio (R-FL) let the cat out of the bag when he acknowledged that Republicans will come after seniors’ earned benefit programs as soon as the tax cut passes.  In fact, the tax bill will trigger an immediate $25 billion cut to Medicare unless Congress quickly waives the PAYGO provision of federal budget law. (Both Medicare and Medicaid – which helps seniors afford long-term care – are targeted for deep cuts in the GOP budget plan.) The tax scam also hurts older Americans by zeroing out the Obamacare coverage mandate penalty (which could result in higher premiums for 50-64 year-olds).  It also imposes the paltry “Chained CPI” as an inflation index for taxes, which could later bleed over into Social Security cost-of-living adjustments and shrink badly needed increases in retirees’ checks. 

Speaking on this chilly December afternoon in the nation’s capital, Leader Pelosi said, “It’s a cold day for seniors because of this GOP tax scam. It is an assault on the older Americans who built this country.  Seniors are among the biggest losers in this legislation.”

Congresswoman Jan Schakowsky (D-IL) called the tax bill “the first step in the Republican plan to undermine the financial and health security of older Americans.”

Rep. Doris Matsui (D-CA) observed that the threat to seniors from the GOP tax legislation “keeps getting worse and worse” and said the bill would have “cruel and dire” consequences.  She slammed the House bill’s repeal of the medical expense deduction, which millions of seniors use to mitigate high out-of-pocket medical and long-term care costs.

Republican members of a House-Senate conference committee are currently meeting behind closed doors to work out the differences between each chamber’s version of the tax bill.  Leadership hopes to pass a final bill and send it to President Trump for signature before Christmas – perhaps the worst holiday gift Congress could possibly give to the American people.  Seniors and their advocates are right to be concerned about this legislation, which is deeply unpopular with the public (only 29% of Americans support it in the most recent polling).  But after years of dreaming about slashing Social Security, Medicare, and Medicaid, Republicans are now in a position to carry out their craven plans - without apparent regard for public opinion, fairness, or decency. 

Outrage Crucial as Trump-GOP Tax Scam Gets Dangerously Close to Passing the Senate

When President Trump and Congressional Republicans tried to repeal Obamacare earlier this year, the gross unfairness of taking healthcare away from 20-30 million Americans sparked outrage across the country.  Members of Congress got an angry earful from constituents every time they went back home.  Speaker Paul Ryan’s office got so many calls they had to shut the phone lines down.  Despite multiple attempts to kill the Affordable Care Act, Republicans repeatedly failed under a crush of public pressure.  Senators of conscience, including Sens. McCain, Murkowski, and Collins put principle over party and stood in opposition when it counted.  That is precisely the kind of outrage we need right now as the Trump/GOP tax scam rolls toward passage.

In the face of overwhelming evidence that the Republican plan is a shamelessly giveaway to the wealthy and big corporations, the public must continue to apply as much pressure as possible on elected representatives. (The Senate GOP bill even includes a provision repealing Obamacare’s mandate, and the opposition must rise with equal fervor.)  National Committee president Max Richtman sent a letter to the Senate yesterday urging that the bill be defeated.

Now is the time to seize on the opportunity to stop the Trump/GOP tax juggernaut before it wreaks permanent havoc on the lives of the poor, the sick, the working class, and the elderly. Yesterday the Senate Finance Committee advanced the bill to the floor on a 12-11 party-line vote. A handful of GOP Senators still oppose the plan, but the number is dwindling by the day and no doubt most of them will cave in the end. Meanwhile, in an effort to woo holdouts, Senate tax writers are making the bill even more generous to the wealthy.  

“[A] change demanded by… two unhappy senators — Ron Johnson of Wisconsin and Steve Daines of Montana — would further lower the tax bills of people like President Trump who earn most of their income through limited liability companies, partnerships and other ‘pass through’ businesses that do not withhold taxes on the money passed along to their owners.” – New York Times, 11/28/17

One could rightly ask, where is the outrage on the part of deficit hawks and so-called GOP moderates? What does it even mean to be a moderate who could vote for such a regressive piece of legislation?  Even Maine Senator Susan Collins is negotiating with tax writers instead of remaining firm in opposition.  Hopes that the requisite three GOP Senators will retain the courage to buck this bill are fading fast.

We need to look past the obvious distractions of Trump’s latest tweets and petty feuds and keep our eye on the ball.  The Trump/GOP tax scam is being served up for the benefit of billionaires and corporate titans in the party’s donor base.  Republicans have admitted as much:  big donations will dry up if they don’t get this done.

Months of careful and credible analysis has laid bare the truth about who will pay the price for this irresponsible legislation.  While the 1% get trillions in tax relief, many working class Americans will see their taxes go up in the next ten years:

Almost every independent evaluation of the House and Senate plans has found a $1 trillion tax cut for corporations and changes to the individual tax code that would benefit wealthier Americans while leading to millions of middle-class and lower-income people paying higher taxes than they do now. – Dylan Scott, Vox
Those earning under $10,000 would see their taxes rise by a cumulative $100 million; those earning between $10,000 and $20,000 would see taxes rise by $638 million; those earning between $20,000 and $30,000 would see taxes rise by almost $1.2 billion; and those earning between $30,000 and $40,000 would see taxes rise by $653 billion. – Politifact.

According to Politifact, some 40 million Americans would pay higher taxes in 2027 than they would today. Older Americans would be hit particularly hard.  Not only might their taxes go up if they are not fortunate enough to inhabit the upper income echelons, but the tax legislation would automatically trigger $25 billion in immediate cuts to Medicare.  The projected $1.5 trillion the tax cuts would add to the national debt would no doubt spur Republicans to pursue even deeper cuts to seniors’ earned benefits, leading to benefit cuts and higher eligibility ages for Medicare and Social Security.  Melissa Favreault of the nonpartisan Tax Policy Center warns:

Unless the tax cuts spur immense economic growth, which many prominent economists doubt based on decades of evidence, these cuts will harm future workers and Social Security and Medicare beneficiaries. – Melissa Favreault, Tax Policy Center

Not to mention that the Trump/GOP budget plan calls for over a trillion dollars in cuts to Medicaid, which millions of seniors rely on for long-term care.  Is it fair to punish current and future generations of seniors so the rich and multinational corporations can pocket trillions they don’t even need? 

Republican members of Congress continue to shill for the plan, perpetuating the lie that it provides significant tax relief for the middle class (it clearly doesn’t) or that it will grow the economy and create jobs (a myth disproven by history time and again).  The mainstream media focuses largely on the “horse race” aspect of the tax debate – who’s up, who’s down, how badly President Trump and the GOP need a “win.” Meanwhile, we know who loses, including large swaths of President Trump’s own base in the working class, which is perhaps the most egregious betrayal of all.  As Dylan Scott points out in Vox, candidate Trump promised to bring a new kind of populism to Washington.  “The forgotten men and women of our country will be forgotten no longer,” said the President at his inaugural.  

“Trump promised that the big, beautiful tax cut Republicans would pass would be a tax cut for the middle class. He went so far as to claim that he himself, allegedly worth $10 billion, would not benefit. He pledged that he wouldn’t be swayed by the Washington lobbying class.” – Dylan Scott, Vox

Those millions of working class Americans seem to have been all but forgotten now.  The President and the Republicans in Congress are clearly hoping that most voters are, in fact, distracted or looking the other way as they pull off one of the biggest transfers of wealth in U.S. history.  But we must not look the other way, or soon it will be too late.

 

The Week Brings Good & Bad News for Medicaid


Let’s start with the good news. Yesterday, voters in Maine overwhelmingly approved the expansion of Medicaid in their state (59% to 41%), bucking the will of Republican Governor Paul LePage. The Governor had vetoed Medicaid expansion five times, but the people had the final say in yesterday’s referendum.  Now, some 70,000 Mainers should be newly eligible for Medicaid.  That includes thousands of older residents not yet eligible for Medicare who can’t afford private health coverage.  Forbes calls the outcome a “victory for Obamacare.” 

A spokesman for the group that sponsored the ballot initiative starkly defined the stakes.

“Too many Mainers have already waited too long for health care. They shouldn’t have to wait any longer. The governor cannot ignore the law or the Constitution of Maine. Simply put, the governor does not have veto power of citizen’s initiatives and he cannot ignore the law.” – David Farmer, Maine Medicaid expansion advocate

The federal government will cover 90% of the cost of expansion, injecting nearly $500 million into Maine’s economy in the next two fiscal years. A recent study says those federal funds will generate 6,000 new jobs (mostly in the health sector). 

Maine becomes the 33rd state (including D.C.) to expand Medicare.  But as Sarah Kliff writes in Vox, the way Maine did it provides a potential template for expanding the program in other states:

Maine is the first state to expand Medicaid during the Trump administration, and also the first to do so via a ballot initiative than legislation. This offers a possible playbook for health care advocates in other states looking to extend coverage but stymied by political opposition. – Sarah Kliff, Vox 11/7/17

Of the 17 holdout states, Utah, Idaho, and Kansas may see Medicaid expansion on the ballot in 2018.  Increased coverage, better access to care, and a huge economic boon should make this an obvious ‘yes’ vote – though outcomes are not guaranteed, especially without robust advocacy.

Advocates can expect the same kind of pushback from conservatives in these other states.  Governor LaPage peddled the falsehood that the expansion would put an unsustainable financial burden on the Maine government.  The Portland-Press Herald reports that the governor also perpetuated the myth that expanding Medicaid would give “free” healthcare to “able-bodied adults who can work and contribute to their own health insurance costs.”

And that leads us to some bad news, which is that the Trump administration is using that same canard to chip away at Medicaid in red states across the country.  Seema Verma, administrator of the Centers for Medicare and Medicaid Services (CMS), announced a rule change this week that will allow states to impose work requirements on Medicaid beneficiaries.  This supposes, of course, that there are legions of lazy Medicaid enrollees who could work, but just don’t want to – a total myth.

As Talking Points Memo reported, most adults on Medicaid suffer from some of disability and cannot work.  According to a 2017 study by the Kaiser Family Foundation, only 27% of Medicaid beneficiaries are adults without disabilities.  Of those, 60% are, in fact, working.  Most of the recipients not working have one of the following extenuating circumstances: 

  1. Caring for a family member full-time
  2. Lack of jobs in their area
  3. Criminal record prevents employment

The bottom line:  most of the Medicaid recipients who can work do work

These new conditions will especially onerous for some six million older Americans (age 45-64) currently on Medicaid.  This age group experiences more disability and chronic illness than younger recipients do.  If forced to go without care because of new restrictions, they will arrive at the doorstep of Medicare in worse health, which can drive up program costs. 

The Obama administration had it right, by allowing rule changes at the state level which “increase and strengthen overall coverage of low-income individuals” and “improve health outcomes for Medicaid and other low-income populations.” The Trump administration, under Verma’s leadership, is showing its contempt for the elderly and poor – and knee-jerk suspicion of federal programs that actually help society’s most vulnerable. What’s more, CMS’ new rules defy candidate Trump’s promises to “not touch your Medicaid.” But as we’ve seen with his pledges to protect Social Security and Medicare, the President’s promises are not worth the megabits they’re tweeted on. 

 

GOP Budget Resolution a "Lump of Coal" for Seniors, Middle Class

While the media have been largely consumed by the latest outrages from the White House, Republicans in Congress have been quietly working to radically redesign our tax code and cut trillions in spending that benefits ordinary Americans, including and especially seniors. With little fanfare, the Senate voted 51-49 last week to pass a cynical budget resolution that’s really a Trojan Horse for tax cuts for the wealthy and big corporations. Yesterday, the House followed suit by a vote of 216-212.  

Had a few votes gone the other way, these plans would have been stopped dead in their tracks, as we witnessed with Obamacare repeal.  But the public wasn’t paying much attention, and the pressure on Congress to vote in the public interest was nowhere near as intense.

Even if some of the more heinous budget cuts fall away, the resolution is an unsettling declaration of priorities that can only be described as mean-spirited and immoral.  As Dylan Scott keenly observes in Vox:

The budget stands as a vision of what the Republican majority wants to do, and perhaps would do if it had eight or nine more votes in the Senate. It suggests that basically every Republican in each chamber (the only senator opposed was Rand Paul, who wanted deeper cuts) is comfortable aligning himself or herself with an agenda that radically cuts the social safety net for… retirees and the middle class. – Dylan Scott in Vox, 10/26/17

The GOP budget and tax scheme, which leadership would like to pass before the holidays, has been rightly described as a “lump of coal for the middle class.”  Yes, the tax plan is a big, fat Christmas gift to the wealthy, wrapped in a package of distortions.  Despite President Trump’s disingenuous claim that it helps middle income earners, 80% of the tax savings goes to the wealthiest 1% of the American people.  The rest get only a trickle of tax relief.  

Tax policy that benefits the middle class, including deductions for state and local taxes, goes out the window in this plan.  So might existing exemptions for 401K contributions, currently set at $18,000 per year.  GOP leaders have talked about significantly reducing the amount of pre-tax contributions people can make, reportedly to $2,400 per year.  (The exact details are secret, of course, until the plan is unveiled on November 1st.)  The party of personal responsibility is actually proposing to penalize Americans for saving for retirement – as some 50 million of us now do to the tune of $67 billion in tax savings per year.

The GOP would pay for massive tax breaks for the rich by cutting essential safety net programs for seniors and other vulnerable Americans.  These are among the Scrooge-like proposals in the  budget plan:

*Cuts nearly $500 billion from Medicare by privatizing the program and raising the eligibility age.

*Cuts $1.3 trillion from Medicaid over ten years, jeopardizing long term care services and supports for the elderly.

*Cuts $653 in Supplemental Security Income (SSI) for some 8 million low-income seniors and people with disabilities.

*Will likely require cuts in in Older Americans Act programs (e.g., Meals on Wheels), home heating assistance for seniors, and research into diseases affecting the elderly, including Alzheimer’s and cancer.

Meanwhile, the supposedly budget-conscious GOP has voted to allow itself to deficit-fund $1.5 trillion of the tax cut package. As the hole in the deficit grows, Republicans will then be able to come after Americans’ earned benefits – Social Security and Medicare – to try to close the gap, even though Social Security and Medicare Part A are self-funded and don’t affect general revenues.  

Of course, the long-planned assault on Medicare has already begun – with new viability now that Republicans control all branches of government. The budget resolution contains oft-told prevarications about the program:

"Medicare spending is on an unsustainable course… Given this untenable situation, the budget resolution supports work by the authorizing committees to recommend legislative solutions extending Medicare's solvency in the near term, while pursuing policies that place the program on a sustainable long-term path." – GOP 2018 Budget Resolution

The way to strengthen Medicare now and for the future is to keep the Affordable Care Act in place (which is already saving Medicare hundreds of billions) and allow the government to negotiate prescription drug prices with drug companies, for starters. 

Because Congressional leadership is forcing reckless tax cuts through the reconciliation process (where measures can pass the Senate with a simple majority), Democrats will be unable to impede this cruel juggernaut.  As we saw in the Obamacare repeal battle, it will once again fall to a handful of Republicans of conscience to put the brakes on unfair tax and budget cuts.  But they will do so only if they hear loudly and clearly from all of us.


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