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Obamacare Court Ruling Is Good News for Medicare Too

You could literally hear the collective sigh of relief today as millions of Americans whose healthcare was in jeopardy found out today they can keep their coverage through Obamacare.  Today’s Supreme Court decision upholding federal exchange subsidies is also good news for millions of seniors in Medicare who stand to lose billions in new benefits if healthcare reform is dismantled. 

As we have said for years now, seniors in Medicare need the Affordable Care Act.  Today’s Supreme Court ruling helps preserve this vital reform.

"Today’s Supreme Court decision impacts so many more Americans than just those in federal health exchanges created by Obamacare.  Thankfully, the Court’s ruling today preserves the many benefits and savings that Americans have received through the Affordable Care Act and avoids the damage that could have been done to our entire American health care system.

Seniors in Medicare have a stake in this debate as they will save, on average, about $5,000 over the next 10 years due to lower drug costs, preventive services with no out-of-pocket cost and reductions in the growth of health spending.  Since passage of Obamacare, more than 8.2 million people with Medicare saved over $11.5 billion on prescription drugs.  These are real people who will face real threats to their health security if the quest to dismantle Obamacare is ever successful.  No doubt the enemies of health care reform will continue their zealous mission to roll back Obamacare’s successes but today we have reason to celebrate. Tomorrow we’ll resume our fight to ensure seniors continue to benefit from the enormous savings Obamacare provides them and their families.”...Max Richtman, NCPSSM President/CEO


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Standing Strong for Social Security & Medicare

The fight to defend and strengthen Social Security, Medicare and Medicaid has seemed relentless in recent years as the programs have been under almost constant assault by the billion dollar anti-"entitlement" lobby and their supporters in Congress.  For staff here at the National Committee to Preserve Social Security & Medicare it's been a challenging yet rewarding year as we have won many important battles in Washington to stop the shredding of America's social safety.  But it's not over yet.  

Here is our 2014-15 Annual Report for look back at a very important year in the fight to strengthen Social Security, Medicare and Medicaid. 

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Seniors Tell Congress Medicare Isn’t Your ATM

 

 

Seniors advocates with the Alliance for Retired Americans and the National Committee joined Reps. Keith Ellison (D-MN) and Jan Schakowsky (D-IL) in a press event today to express their opposition to legislation that would cut $700 million from Medicare to pay for a slice of the Trade Deal now being debated in Congress. 

“Medicare is not the piggy bank for other programs. We’ve already seen what sequester has meant for the program.  We’ve written to Congress because there’s just not enough awareness on this issue.  Across the board cuts affects the integrity of the Medicare program.” Rich Fiesta, Alliance for Retired Americans Executive Director

“The use of Medicare cuts, 700 million dollars of Medicare cuts, to finance a program totally unrelated to Medicare sets a terrible precedent.  It’s not death by a thousand cuts but that’s where we seem to be headed.  I think it’s interesting that many of the same members of Congress who condemned Obamacare and decried savings in the Medicare program as cuts--savings which were, by the way, plowed right back into the program to provide preventive screenings, close the Part D donut hole and extend the program’s solvency--are now some of the same legislators who want to really cut money from Medicare to pay for an unrelated program.”  Max Richtman, National Committee President/CEO

Members of the Congressional Progressive Caucus and the Congressional Task Force on Seniors are leading the charge against this proposal:

10,000 people a day turn 65.  We should be investing and expanding Medicare not stealing from it.  People have paid into this program and expect it to be there...not to use that to fund anytime we need money to pay for another program...Medicare is not the ATM for everything Congress wants to pay for.  Cutting this social insurance program isn’t the direction we should be going in. Medicare should not be the pay-for for trade deal. The best way to help workers is to stop trade deals that take their jobs...not cut Medicare to fund fixes.” Rep. Jan Shakowsky (D-IL)

“There’s going to be untold riches earned if TPP is enacted into law.  There’s no doubt about that. Great profits will be derived for large international corporations...it seems only logical that the multinationals should fund the costs of the Trade Adjustment Assistance. I can not abide this.  We’ll fight it with everything we have.”  Keith Ellison (D-MN)

Reps. Ellison and Schakowsky say many of their colleagues don’t even realize this Medicare cut was slipped into the Trade Assistance provision.  They’re raising the alarm but hope seniors and their families will also call and email their Members of Congress now since the debate is underway. 

You can do that easily from our Leg Action Center. 

SEND YOUR EMAIL TODAY!

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GOP Budget Plan: Even More Cuts for Seniors in Medicare

In keeping with every GOP budget passed over many years, benefit cuts for average Americans and tax cuts for the wealthy rule the day.  The Senate this week will pass the Budget Conference Report (it only needs a majority, which the GOP now has) including massive benefit cuts for seniors in Medicare.  

National Committee policy staff has laid out what this Budget bill means for seniors in our letter to the Senate:  

The conference agreement would be devastating to today's seniors and future retirees, people with disabilities and children due to the proposed changes it makes to Medicare, Medicaid and the Affordable Care Act.  While it proposes huge cuts to our social insurance safety net, the conference report would give massive tax cuts to the very wealthy. The conference agreement assumes the privatization of Medicare and achieves savings by shifting costs to Medicare beneficiaries.  Beginning in 2024, when people become eligible for Medicare they would not enroll in the current traditional Medicare program which provides guaranteed benefits.  Rather they would receive a voucher, also referred to as a premium support payment, to be used to purchase private health insurance or traditional Medicare through a Medicare Exchange.  The amount of the voucher would be determined each year when private health insurance plans and traditional Medicare participate in a competitive bidding process.  Seniors choosing a plan costing more than the average amount determined through competitive bidding would be required to pay the difference between the voucher and the plan's premium.  In some geographic areas, traditional Medicare could be more expensive.  This would make it harder for seniors, particularly lower-income beneficiaries, to choose their own doctors if their only affordable options are private plans that have limited provider networks.  Wealthier Medicare beneficiaries would be required to pay a greater share of their premiums than lower-income seniors.

The plan to end traditional Medicare requires private plans participating in the Medicare Exchange to offer insurance to all Medicare beneficiaries.  However, it is likely that plans could tailor their benefits to attract the youngest and healthiest seniors and still be at least actuarially equivalent to the benefit package provided by fee-for-service Medicare.  This would leave traditional Medicare with older and sicker beneficiaries.  Their higher health costs would lead to higher premiums that people would be unable or unwilling to pay, resulting in a death spiral for traditional Medicare.  This would adversely impact people age 55 and older, including people currently enrolled in traditional Medicare, despite the conference agreement’s assertion that nothing will change for them.

The conference report threatens to shift costs to Medicare beneficiaries.  S. Con. Res. 11 contains $431 billion over ten years in unnamed Medicare cuts.  Over half of Medicare beneficiaries had incomes below $23,500 per year in 2013, and they are already paying 23 percent of their average Social Security check for Parts B and D cost-sharing in addition to paying for health services not covered by Medicare.  When coupled with requirements to shift costs to beneficiaries in the Medicare Access and CHIP Reauthorization Act of 2015 (P.L. 114-10), the unspecified Medicare benefit cuts included in the conference agreement would be burdensome to millions of seniors and people with disabilities.

In addition, the conference agreement calls for repealing provisions in the Affordable Care Act (ACA), which would make health insurance inaccessible for seniors age 64 and younger.  Without the guarantees in the ACA, such as requiring insurance companies to cover people with pre-existing medical conditions and to limit age rating, younger seniors may not be able to purchase or afford private health insurance.

Repealing the ACA would also take away improvements already in place for Medicare beneficiaries – closing the Medicare Part D coverage gap, known as the "donut hole"; providing preventive screenings and services without out-of-pocket costs; and providing annual wellness exams.  The Centers for Medicare and Medicaid Services recently reported that since the passage of the ACA, over 9.4 million Medicare beneficiaries in the Medicare Part D donut hole have saved $15 billion on their prescription drugs, an average of $1,595 per person.  An estimated 39 million people with Medicare took advantage of at least one preventive service with no cost sharing in 2014.

The agreement includes reductions to Medicaid funding that would affect low-income seniors.  Medicaid provides funding for health care to help the most vulnerable Americans, including low-income seniors, people with disabilities, children and some families.  The conference report would end the current joint federal/state financing partnership and replace it with fixed dollar amount block grants, giving states less money than they would receive under current law.  In exchange, states would have additional flexibility to design and manage their Medicaid programs.  The proposed block grants would cut federal Medicaid spending by $500 billion over the next 10 years.  Giving states greater flexibility in managing and designing their programs in no way compensates for the significant reductions that beneficiaries, including nursing home residents and their families, could face by turning Medicaid into block grants.

The conference report also would repeal the Medicaid expansion in the ACA. Beginning in 2014, states have had the option to receive federal funding to expand Medicaid coverage to uninsured adults with incomes up to 138 percent of the federal poverty level ($16,242 for an individual in 2015).  Over half of the states have expanded their Medicaid programs, and some others will likely participate in the future.  The conference agreement would hurt states and low-income individuals by repealing Medicaid expansion, taking away $900 billion from the program over 10 years.  Altogether, S. Con. Res. 11 cuts the Medicaid program by more than $1.4 trillion over 10 years, compared to current law.

Moreover, the conference agreement puts 11 million severely disabled Social Security Disability Insurance (SSDI) beneficiaries at risk of a 20 percent benefit cut next year by reaffirming a House rule requiring legislation to address the financing of the SSDI program be accompanied by revenue increases or much more likely benefit cuts.  That’s why the National Committee urges the Senate to reject the House’s SSDI recommendations in the conference report and instead make a modest reallocation of Social Security payroll taxes from the retirement trust fund to the Disability Insurance Trust Fund as has been done 11 times in the past on a bipartisan basis.

The National Committee urges you to oppose the Conference Report on the FY 2016 Budget Resolution, which would be harmful to seniors, people with disabilities and children."

 

 

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Social Security Numbers to be Removed from Medicare Cards

It was one of the National Committee’s Legislative priorities this year and we’re happy to report that Social Security numbers will now be removed from Medicare cards.  As the incidence of identity theft has risen it’s become clear that imprinting more than 50 million benefit cards with Americans’ Social Security numbers on the front put millions at risk.  That’s why we supported legislation which would require the numbers be removed.

But it doesn’t come without a cost.  The New York Times describes the funding:

Congress provided $320 million over four years to pay for the change. The money will come from Medicare trust funds that are financed with payroll and other taxes and with beneficiary premiums.

In his budget for 2016, Mr. Obama requested $50 million as a down payment “to support the removal of Social Security numbers from Medicare cards” — a step that federal auditors and investigators had been recommending for more than a decade.

More than 4,500 people a day sign up for Medicare. In the coming decade, 18 million more people are expected to qualify, bringing Medicare enrollment to 74 million people by 2025.

Medicare now has up to four years to start issuing new numbers on cards for new beneficiaries and four more years to reissue cards for those already in Medicare. Social Security numbers will be replaced with “a randomly generated Medicare beneficiary identifier.”  The details are still being worked out.

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