In these days where nothing in Congress can get done without making threats to slash benefits, holding programs like Social Security and Medicare hostage or creating a crisis that could easily be fixed – today’s news that budget negotiators have reached a deal to avoid a full government default is welcome news. 

But of course, the devil is in the details. 

“At the risk of damning by faint praise, the newly negotiated budget deal certainly could have been a lot worse. The good news is Democrats in Congress and the White House were able to stop a 52% premium increase from hitting millions of seniors in Medicare next year.  They also negotiated a re-allocation (originally blocked by the GOP) for the Social Security disability program that prevents a massive benefit cut in 2016 for Americans with disabilities.  In this current Congressional atmosphere of hostage-taking and never-ending threats to benefits, these victories are significant.

Unfortunately, seniors will still receive no cost of living adjustment in 2016 and the sequester cuts to Medicare providers will continue to pay for non-Medicare programs. It’s clear the GOP-led Congress still sees Social Security, Medicare and Medicaid as piggy banks to fund other legislative priorities and this hostage-taking, threats to benefits and crisis creation will continue. We hope Congress can get the votes to approve this budget deal so that seniors, people with disabilities and their families may finally see a temporary cease-fire in this ongoing assault on their benefits.”...Max Richtman, NCPSSM President/CEO

Specifically, this budget agreement, if passed, would:

·         Prevent a 19% cut in Social Security Disability Insurance benefits that would have occurred in late 2016

·         Ensure 7 years of certainty that the Social Security Disability insurance program will pay full benefits

·         Mitigate a 52% Medicare Part B premium increase for 30% of Medicare beneficiaries

·         Alleviate an increase in the Part B deductible for all beneficiaries, lowering it from a projected $223 to $167

·         Provide sequester relief to programs like the Older Americans Act, Low Income Home Energy Assistance Program and Social Security field         offices without cutting Social Security, Medicare and Medicaid benefits.

Unfortunately, the bill would also:

·         Provide NO relief to seniors who will receive no cost of living adjustment in 2016.

·         Extend the Medicare provider reimbursement sequester and uses the savings to pay for unrelated programs.

·  .While this two-year budget agreement could provide a cease-fire in the attacks on Social Security, Medicare and Medicaid it is likely to be fleeting as funding for the nation’s transportation system runs out again in December. What does highway funding have to do with Social Security & Medicare?  The answer should be nothing.  However, as we reported in July, the GOP Congress has tried to pay for the transportation bill with cuts in Social Security and are likely to try again next month.

“...there are at least two Social Security policy changes that are currently being considered as “offsets” for legislation that would extend highway transportation funding. One of these is a measure barring payment of Social Security benefits for seniors with outstanding warrants for their arrest. Almost none of the seniors who would be affected by this provision are actual fugitives from justice and most of the warrants in question are many years old and involve minor infractions. Moreover, the Social Security Administration attempted to administer a similar provision for a number of years, with catastrophic effect for many vulnerable elderly seniors, employing procedures that did not withstand judicial scrutiny. Reenacting this requirement should be something the Congress does only after careful analysis and with ample opportunity for public discussion.

The second provision relates to the concurrent receipt of both Social Security Disability Insurance (SSDI) benefits and unemployment compensation. Given the importance that all policy makers ascribe to encouraging disabled Americans to return to the workforce, I am perplexed by the desire on the part of some in the Congress to strip working SSDI beneficiaries of their eligibility to receive unemployment compensation when, through no fault of their own, they lose a job. Concurrent eligibility, which derives directly from a disabled person’s efforts to return to work, is a work incentive. That incentive should be altered only after the committees of jurisdiction have carefully considered all of the ramifications associated with such a change and, again, after ample opportunity for public comment.”  Entitled to Know, July 2015

The House is expected to vote on the 2 year budget agreement tomorrow.