Font Size

From the category archives: Disability

Will the President Fight for Social Security & Medicare?

President Obama’s State of the Union address to Congress next Tuesday should provide some desperately-needed insight into just how far this administration will go to defend and strengthen America’s two most successful income and health security programs. The new GOP Congress has made their intentions clear by attacking Social Security on Day One of the new session.  The White House; however, remains silent on the GOP’s latest move:

“TPM asked multiple times last week for the White House's position on the House action, but never received a formal response, a stark contrast to the loud public pronouncements of Brown, Warren, and others. It also invokes the uneasy relationship between the White House and Social Security advocates, who were dismayed by Obama's willingness to accept cuts to the program during the 2011 grand bargain talks with House Speaker John Boehner (R-OH).” 

{Update:  The White House did respond after our initial post . A spokesperson told TPM "Generally speaking, the Administration strongly opposes any efforts to undermine Congress’ ability to reallocate funds between the Social Security retirement and disability trust funds," a White House spokesperson told TPM, "as they have done with bipartisan support numerous times in the past in both directions."}

NCPSSM has urged the President to support reallocation, as has happened without controversy 11 previous times, to avoid a massive benefit cut Americans with disabilities simply cannot afford.

“We applaud you for making middle-class mobility and economic equality one of your top priorities.  Social Security helps to provide a lifetime of economic equality by insuring millions of Americans against the risks of retirement, disability and survivorship. 

For that reason, the National Committee urges you to support the reallocation from the OASI Trust Fund to the DI Trust Fund and oppose the House majority’s demand to cut benefits in exchange for addressing the Disability Insurance program’s financing.  Your State of the Union address would be an ideal opportunity to reaffirm your support for Social Security.”  Max Richtman, NCPSSM President/CEO

In truth, the White House could have invested an entire week just responding to all of the attacks launched by GOP Congress in its opening days (so much for working together) so it’s hard to read too much into this silence on Social Security.  However, Tuesday’s State of the Union address should change that.  President Obama must set the tone and make it clear to the House and Senate that cutting benefits to families who depend on Social Security and Medicare is simply not an option. 

While Republicans certainly didn’t campaign on cutting benefits to middle-class families, now that they’re elected, GOP leaders in the House have made it clear that’s exactly their intention.  President Obama’s State of the Union provides an important opportunity to set the record straight and push back on all of the falsehoods currently being used to justify cutting benefits to the middle class.

Here are just some of the more outrageous claims:

The new Chairman of the House Budget Committee, Rep. Tom Price (R-GA), went so far as to create his own set of Social Security numbers to justify the GOP attack by claiming Social Security:

 “is a program that right now on its current course will not be able to provide 75 or 80 percent of the benefits that individuals have paid into in a relatively short period of time …”

There’s nothing about this statement that is true.  Even if Congress does absolutely nothing to improve Social Security’s long-term solvency (and no one believes that will happen) the program would be forced to reduce benefits by about 25% two decades from now. Any benefit cut is unacceptable; however, it’s not too much to expect Congressional Committee Chairmen to stick to the facts. Another House Committee Chairman, the head of the Social Security subcommittee Rep. Sam Johnson (R-Texas), led recent House the effort to hold the Disability program hostage in order to extract cuts program-wide.  He claims:

the program is “plagued by fraud” and that “the public is fast losing faith in Social Security, and I don’t blame them, because I have too.” 

Neither are true. 

The Government Accountability Office found that improper payments of Social Security benefits that include Disability Insurance had an error rate of just 0.6 percent.  SSA’s Inspector General reports less than 1% fraud in the disability program.  Any fraud is too much but what reasonable person would consider  less than 1% of anything a “plague.”

Far from losing faith in Social Security, the American people of all ages and political parties continue to show unparalleled support for the program in spite of Congressional conservatives’ campaign to undermine it. Not only do they support Social Security in its current form, by large margins they’re willing to pay more to improve it and boost benefits. The latest National Academy of Social Insurance survey of Americans found:

Seven out of 10 participants prefer a package that would eliminate Social Security’s long-term financing gap without cutting benefits. The preferred package would:

  • Gradually, over 10 years, eliminate the cap on earnings taxed for Social Security. With this change, the 6% of workers who earn more than the cap would pay into Social Security all year, as other workers do. In return, they would get somewhat higher benefits.
  • Gradually, over 20 years, raise the Social Security tax rate that workers and employers each pay from 6.2% of earnings to 7.2%. A worker earning $50,000 a year would pay about 50 cents a week more each year, matched by the employer.
  • Increase Social Security’s cost-of-living adjustment to reflect the inflation experienced by seniors.
  • Raise Social Security’s minimum benefit so that a worker who pays into Social Security for 30 years or more can retire at 62 or later and have benefits above the federal poverty line.

With this State of the Union, President Obama has an opportunity to provide some truth-telling on Social Security and Medicare while also sending a clear message that the White House will not aide and abet conservatives who intend to cut middle-class benefits to pay for tax cuts for huge corporations and the wealthy.  

We hope the President will join the American people and be bold in the defense and expansion of Social Security and Medicare rather than leave the door open to continued hostage-taking and deal-making designed to unravel the economic security so many Americans depend on.

 

Demonizing the Disabled as a Strategy to Cut Social Security

Social Security Targeted on Day One of New Congress

Members of the new 114th Congress had barely taken their oaths of office today when they passed a proposal threatening millions of Americans who receive Social Security benefits.  The Center on Budget and Policy Priorities describes the plan:

“Buried in the new rules that the House Republican majority {adopted} for the 114thCongress is a provision that could threaten Disability Insurance (DI) beneficiaries — a group of severely impaired and vulnerable Americans — with a sudden, one-fifth cut in their benefits by late 2016. The provision bars the House from replenishing the DI trust fund simply by shifting some payroll tax revenues from Social Security’s retirement trust fund.”

As NCPSSM’s Max Richtman explains, this move was pure politics:

“Today’s unprecedented House vote preventing a routine rebalancing of the Social Security Disability Trust Funds puts politics ahead of policy and partisanship ahead of people.  This House Rules change would allow a 20% benefit cut for millions of disabled Americans unless there are broader Social Security benefit cuts or tax increases improving the solvency of the combined trust funds.  It is difficult to believe that there is any purpose to this unprecedented change to House Rules other than to cut benefits for Americans who have worked hard all their lives, paid into Social Security, and rely on their Social Security benefits, including Disability, in order to survive. 

A modest and temporary reallocation of part of the 6.2 percent Social Security tax rate to the DI Trust Fund would put the entire Social Security program on an equal footing, with all benefits payable at least until 2033.  Democrats and Republicans have authorized this same strategy eleven times without controversy (including four times during the Reagan administration); however, this new House majority would rather play politics with the livelihoods of millions of Americans than solve this important funding issue.  This sends a clear message to middle-class families about the House majority’s priorities -- targeting Social Security for cuts clearly ranks high on their list.”

We’ve written before about the GOP strategy to force broad Social Security benefit cuts while simultaneously demonizing America’s disabled. Senator Sherrod Brown (D-OH) raised the alarm about attempts to politicize what has always been a routine and non-partisan legislative solution to balance the Social Security Trust Funds:

“Reallocation has never been controversial, but detractors working to privatize Social Security will do anything to manufacture a crisis out of a routine administrative function. Modest reallocation of payroll taxes would ensure solvency of both trust funds until 2033. But if House Republicans block reallocation, insurance for disabled Americans, veterans, and children could face severe cuts once the trust fund is exhausted in 2016.”

Not only does this proposal threaten benefit cuts to people with disabilities but it also creates a false either-or scenario that pits retirees and disabled beneficiaries against each other. That’s a particularly absurd notion since the majority of disability recipients are also older, as CBPP explains:

“A reallocation would have only a tiny effect on the retirement program’s solvency. Reallocating taxes to put the two trust funds on an even footing would prolong the DI trust fund by 17 years (from 2016 to 2033), while advancing the OASI fund’s depletion by just one year (from 2034 to 2033). The reason is simple: OASI is much bigger than DI, so a modest reallocation barely dents OASI. And before then, policymakers will almost surely address Social Security solvency in a comprehensive fashion.

Most DI recipients are older people, so helping DI helps seniors. The risk of disability rises with age, and most DI beneficiaries are older. Seventy percent of disabled workers are age 50 or older, 30 percent are 60 or older, and 20 percent are 62 or older and would actually qualify as early retirees under Social Security.”

Changing the rules of the game to target Social Security in the very first hours of a new Congress sends a clear message to seniors, people with disabilities, survivors and their families – a message that certainly wasn’t shared with voters before Election Day – American families who count on Social Security in any way should beware. 

2014 Social Security & Medicare Trustees Report

Hold the Rhetoric, Pass the Truth on the 2014 Trustees Report

This year’s projections come as no surprise to anyone who understands how Social Security and Medicare work. In fact, historically, the solvency date for the Social Security Trust Fund has fluctuated from a depletion date as distant as 2048 in the 1988 report to as soon as 2029 predicted in 1994 and 1997. On Medicare, each year since passage of the Affordable Care Act, the Trustees have reported the program’s improving solvency, this year adding an additional four years until 2030.  We should build on that success and continue reducing the high cost of health care system-wide, not just in Medicare.

This year’s Trustees reports prove, once again, how successful and stable Social Security and Medicare continue to be for the American people and the federal government.”... Max Richtman, NCPSSM President/CEO

Here are some of the key points in the 2014 Trustees Report:

·         Trustees project Social Security will be able to pay full benefits until the year 2033.  After that, Social Security will still have sufficient revenue to pay 77% of benefits if no changes are made to the program.

·         Social Security remains well-funded. In 2014, as the economy continues to improve, Social Security’s total income is projected to exceed its expenses. In fact, the Trustees estimate that total annual income will exceed program obligations until 2019. 

·         Trustees project a Cost of Living Adjustment increase of about 1.5% in 2015.

·         The Trustees report there is now nearly $2.76 trillion in the Social Security Trust Fund, which is $32 billion more than last year and that it will continue to grow by payroll contributions and interest on the Trust Fund's assets.

With so little bad news to report in this 2014 Trustees report, critics have now shifted their attention to Social Security Disability Insurance (SSDI), which faces a more immediate challenge and requires Congress’ action for a reallocation.

·         Trustees project the Disability Trust fund will be depleted in 2016, the same year projected in last year’s report. This projected shortfall is not a surprise and Congress should reallocate income across the Social Security Trust Funds, as it has done 11 times before, to cover the anticipated shortfall.  Disability expenditures have increased primarily due to demographic trends.  When Congress took action in 1994 to address a shortfall in SSDI, it knew that it would have to take action again in 2015 or 2016. Unfortunately, some in Congress have politicized this anticipated shortfall and threatened to delay action in order to force cuts throughout the entire Social Security program.

On Medicare, the 2014 Trustees report shows slowing the growth of health care costs has improved Medicare’s Trust Fund.

·         Medicare solvency remains greatly improved thanks to passage of healthcare reform, with the program paying full benefits until 2030, four years later than the 2013 report. Health care spending has also grown much more slowly.

·         Medicare Part B premiums are not projected to increase in 2015. 

Disabled Americans are Conservatives’ New “Welfare Queens”

“There is a quiet, covert war being waged on Social Security. The tactic? Divide and conquer. Today, detractors try to use Social Security Disability Insurance as a back door to cut the program as a whole. And, we will organize and fight back against today’s attacks aimed at some of the most vulnerable Americans: the disabled.”  Sen. Sherrod Brown (D-OH)

Divide and conquer politics is certainly nothing new in Washington.  From Ronald Reagan’s mythological nation of “welfare queens” to Alan Simpson’s “greedy geezer” myth of hordes of seniors driving Lexus’ to their gated communities – politicians love to create villains, even if the facts simply don’t back up the political spin.

"It hangs together as a good story because it's consistent with people's perception of the real world," says Craig R. Smith, who was a speechwriter for former President Gerald Ford and a consulting writer with President George H.W. Bush.  "Like in any good mythology, you need heroes and villains and in the Welfare Queen, you had a villain who was taking advantage of the system."

And so it goes with conservatives’ latest target – disabled Americans receiving Social Security benefits. No doubt, you’ve already heard the messaging: Social Security disability fraud is rampant because it’s so easy to receive benefits and people would rather collect a hefty check from the government than work.  It’s the 2014 incarnation of “our nation is full of ‘welfare queens’ and ‘greedy geezers.’” It also suffers from the same basic problem...it’s simply not true.

So let’s break down a few of these Disability Myths.

MYTH: “Disability has become a form of permanent welfare for a lot of folks. It's not that hard to prove a mental illness, or mental issues, or pain issues.” Nina Easton, Fox News commentator

Not that hard?  So, why are the vast majority of claims denied?

FACT: “Nearly 80 percent of applicants are denied at the initial level, and fewer than 4 in 10 are approved after all levels of appeal. Underscoring the strictness of the disability standard, thousands of applicants die each year while waiting for benefits. And one in five male and nearly one in six female beneficiaries die within five years of being approved for benefits. Disability Insurance beneficiaries have death rates three to six times higher than other people their age.” Center for American Progress

It’s seems pretty ridiculous to claim the system’s being widely-abused when so many die just years after receiving benefits or while they’re still waiting for an answer.

MYTH:  Growth in disability claims is “astonishing”, an “epidemic” and “startling.” 

Actually, it’s called demographics.  Ever heard of the baby boomers? Former SSA Commissioners from both Republican and Democratic administrations have taken issue with this fact-free, hysteria-laden portrayal of the disability program’s growth.

FACT:  “It is true that DI has grown significantly in the past 30 years. The growth that we’ve seen was predicted by actuaries as early as 1994 and is mostly the result of two factors: baby boomers entering their high -disability years, and women entering the workforce in large numbers in the 1970s and 1980s so that more are now "insured" for DI based on their own prior contributions.” Open Letter from former SSA Commissioners

 “...four-fifths of the program’s total enrollment in 2013 — and over two-thirds of the growth in enrollment since 1980 — stems from five easily quantifiable factors:  growth in the overall working-age population, the aging of that population, growth in women’s labor force participation, the rise in Social Security’s full retirement age, and the growth in DI receipt among women eligible for benefits to match men’s rate of receipt. In short, the factors driving DI’s growth are reasonably well understood, were long anticipated, and do not depict a program that is ‘out of control.’” Center on Budget and Policy Priorities

“As Baby Boomers retire, the program’s growth has already leveled off and is projected to decline further in the coming years.”  Center for American Progress

MYTH:  The entire system is “broken,” rife with “fraud” and “rubber-stamping judges” bankrupting the entire Social Security program.

 FACT:  The Government Accountability Office found that improper payments of Social Security benefits that include Disability Insurance had an error rate of just 0.6 percent. Government Accountability Office

 An investigation by the Social Security Administration’s Office of the Inspector General looked at the 10 states with the highest increase in disability applications from 2007-2011.  That report found that while the number of applications increased...approvals declined. Social Security Administration OIG

Rep. Darrell Issa (R-CA) is a leading promoter of the Disability Myths. .  His committee has zeroed in on the casework of just four out of 1,400 disability judges to bolster his claims of widespread fraud in the program. 

“Issa's report twists all these facts and figures to create a fantasy of a program running amuck. He says "an extraordinary number" of administrative judges "were allowing the vast majority of their decisions"; in fact the overall approval rate of cases that come before the judges is 58%.”  Michael Hiltzik, Los Angeles Times

“First, these judges were deliberately selected by the House Oversight Committee because they were outliers who approve a high percentage of the cases brought to them. The Social Security Administration has almost 1400 administrative judges. Undoubtedly many are also outliers on the other side, denying most of the cases brought to them.” Dean Baker, Center for Economic and Policy Research

“...not all judges are "rubber-stamping" disability claims, and the overall allowance rate fell from 72 percent in 2005 to 56 percent last year.” Andrew Biggs, American Enterprise Institute   

The timing of this attack on Social Security’s disability program is not an accident. It’s the cornerstone of Congressional Republicans’ campaign to oppose both President Obama’s nomination of a new Social Security Administration Commissioner and (what in the past has been) the routine reallocation of the Trust Fund to prevent a 20% disability benefit cut in 2016.

Rather than address the disability shortfall head-on, as so many Congresses have before, conservatives hope to hold the disability program hostage in return for cuts throughout the entire Social Security program.

“Playing chicken with the trust fund would be devastating, Ruffing said. “If Congress allows the disability trust fund to run dry, then what will happen is benefits to all recipients will be cut by approximately 20 percent, which is obviously an unacceptable outcome,” she said. “It’s a completely unnecessary form of brinkmanship.” Kathy Ruffing, Center on Budget and Policy Priorities on NBC News

 “Since Social Security was enacted, Congress has "reallocated" payroll tax revenues across the OASI and DI trust funds – about equally in both directions – some 11 times to account for demographic shifts. In 1994, the last time such reallocation occurred, SSA actuaries projected that similar action would next be required in 2016. They were right on target.” Open Letter from former SSA Commissioners

“Reallocation is a straightforward process and the need for it does not come as a surprise,” Virginia P. Reno, NASI Vice President for Income Security Policy

Just as with Ronald Reagan’s “welfare queen” story, there is no doubt that fraud exists. But it’s clearly not what Disability Mythologists claim.  As Social Security advocates, we’ve long supported efforts to crack down on fraud and abuse because strong Social Security and Medicare programs depend on the efficient and appropriate payment of benefits only to those who qualify.  The American people expect the contributions they’ve made throughout their working lives will be spent appropriately.  So, if it is possible to further rid Social Security’s disability program of it’s tiny percentage of fraudulent claims then we whole-heartedly support those efforts. 

However, let’s be very clear about one thing -- that’s not what the Disability Myth is all about.  This isn’t a debate between one side that supports Social Security fraud and those who oppose it.  This is a debate between those who refuse to allow Americans with disabilities to be held as political hostages with threats of a 20% benefit cut by those whose true goal is to cut the entire Social Security program, through privatization or countless other means. That’s the ultimate goal of this divide and conquer strategy which portrays America’s disabled workers, the same people who have paid for their earned benefits, as villains.

We’ll end just as we began, with this warning from Senator Sherrod Brown (D-OH):

“Opponents of Social Security realize that when they attack the program head on, they lose. So, their strategy is two-fold: First, convince the public that the disability insurance program is bankrupt. Second, separate Social Security from disability insurance in the eyes of voters. We need to recognize these attacks for what they are – backdoor attempts to weaken Social Security by dismantling disability insurance.”

Pages: Prev123NextReturn 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 © 2015 by NCPSSM
Login  |