Posted on 2/24/2017 2:10 PM By NCPSSM
There is a new push on Capitol Hill to link Cost of Living adjustments (COLAs) for federal retirement programs to a much more powerful indicator of the prices seniors really pay for crucial goods and services. It’s called the Consumer Price Index for the Elderly (CPI-E), an experimental metric by the Bureau of Labor Statistics that more accurately reflects senior’s costs than the traditional Consumer Price Index (CPI), or even the Consumer Price Index for Wage Earners (CPI-W), which the government currently uses to calculate COLAs for Social Security. Switching over to the CPI-E could mean a substantial increase in benefits for retirees.
Congressman John Garamendi (D-CA) is reviving a 2015 House bill to mandate that the CPI-E be used to calculate cost of living adjustments for federal retirement programs. The National Committee has endorsed Garamendi's legislation.
"The consumption patterns of seniors are different from those of younger people. Using the CPI-E will ensure that benefits for retirees are not diluted by disproportionately rising costs in sectors affecting seniors. The CPI-E is the most accurate and balanced measure of the real costs that seniors face in retirement." – Rep. John Garamendi (D-CA)
Like the standard CPI, the new index calculates the prices of a typical basket of goods and serves that are affected by inflation. The difference is that the CPI-E looks at a basket that reflects the kinds of items seniors spend money on. For instance, housing and medical costs make up a much bigger chunk of seniors’ expenses (58%) in the CPI-E than in the traditional CPI. On the other hand, food and transportation costs are de-emphasized in the CPI-E, since seniors typically spend less of their money on those items than the general population does.
If Congressman Garamendi’s bill were to become law, the CPI-E could mean serious new money in retirees’ pockets. Research compiled from Bureau of Labor Statistics data (based on the current CPI-E model) reveals:
- If the CPI-E had been in effect for the past 30 years, retirees would have received 22% more in cost-of-living increases.
- If you as an average worker retired in 2015 with the current CPI-E in place, you would receive nearly $30,000 in additional benefits for the rest of your lifetime.
With 1 out of 3 seniors relying on Social Security for all or most of their income, those increases could make a huge difference. At a time when Congressional Republicans (most notably Rep. Sam Johnson of Texas) are planning to cut COLAs, the Garamendi bill plants a flag on a crucial issue that could mean the difference between financial stability and poverty for millions of seniors.
Posted on 1/17/2017 2:14 PM By NCPSSM
Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare, joined other advocates, politicians, and everyday Americans at a Day of Action rally in Richmond, Virginia Sunday. The Day of Action was an opportunity for people across the country to stand up for the Affordable Care Act, Medicare, and Medicaid. The Richmond rally – attended by Richtman, Senator Tim Kaine, Rep. Bobby Scott (D-VA), and Governor Terry McAulife – was one of more than 40 protests nationwide.
Some one thousand people gathered on the grounds of the Virginia State Capitol to make their voices heard. Max Richtman rallied the crowd early on with a reminder of the struggle to defend Social Security in 2005. “We had a president (George W. Bush) whose top agenda item was to privatize Social Security. Even with a GOP House and Senate, we were able to kill it. Not a single bill reached the floor. And that’s what we can do today. We can defeat any changes to the ACA which will endanger Medicare.”
Ricthman reminded the crowd in stark terms exactly what is at stake if the Affordable Care Act is repealed, “despite a lot of the myths that citizens have heard in the past few years.” Medicare beneficiaries, in particular, would lose the valuable improvements that the ACA provided. “Here is the truth,” Richtman said from the podium, “For the first time ever, Medicare beneficiaries were able to get annual wellness exams with no out of pocket costs under the ACA. For the first time ever, they could get preventative screenings with no out of pocket costs, including mammograms, colon cancer screenings, and diabetes screenings. All of that will disappear if the ACA is repealed.” He warned that the Part D Prescription Drug “donut hole” – which the ACA was rapidly closing – would return with repeal, costing the average beneficiary more than $1000 a year.
As the Washington Post reports, the Day of Action was the brainchild of Senator Bernie Sanders and other democratic leaders in Congress. At rallies across the country, crowds heard poignant testimonials from Americans who benefitted from the Affordable Care Act. Kate Barrett of Richmond worried that her daughter suffering from incurable cancer could be denied coverage or won’t be able to afford treatment if the ACA is repealed. 73-year old Scott Gledhill said he was diagnosed with pancreatic cancer two months after signing up for Medicare. “My bill would have been half a million dollars. I would have lost everything I had, after a whole lifetime of work and saving.”
Day of Action organizers want Republicans in Congress to feel public pressure against ACA repeal, and urged attendees to contact their elected representatives right away. “Don’t agonize. Organize!” was the rallying cry of the day, said Richtman. “As we've learned from our past battles,” he explained, “Once politicians feel the heat, they begin to see the light.”
Posted on 1/4/2017 11:01 AM By NCPSSM
At a family gathering over the holidays in Florida, the conversation inevitably turned to politics. Some of the seniors at the table who voted for Trump expressed their certainty that no one in Washington will really touch their earned benefits. “Trump’s not going to let the Congress cut Social Security,” said a Great Aunt in her 70s. “Paul Ryan’s not really going to mess with Medicare,” insisted her husband. Of course, these beloved family members could not be more wrong.
Their complacency (or, in this case, complicity) sets up a dangerous opportunity for the GOP-controlled 115th Congress, which was just sworn in yesterday. Claiming a mandate that most certainly does not exist, Congressional Republicans are rolling out proposals that will destroy Social Security and Medicare as we know them, not to mention deep cuts to Medicaid and the repeal of the Affordable Care Act. These actions will hurt not only the seniors at the holiday table, but their children and grandchildren, too. As we have been warning for years, all Americans have a lot to lose if these programs are compromised by capricious politicians.
President-Elect Trump shows no signs of honoring his campaign pledge not to touch Social and Medicare. He has been strangely silent about Congressional proposals that will wreck these two programs, and his appointments to crucial administration positions speak volumes – most notably Rep. Tom Price (a notorious privatization proponent) as Health and Human Services Secretary and Rep. Rick Mulvaney (a fiscal hardliner) as director of the Office of Management and Budget --- a likely ally for Congressional Republicans looking to cut entitlements.
A quick survey of GOP proposals shows just how much current and future beneficiaries of these crucial income security programs have to lose. House Social Security Subcommittee Chair Sam Johnson (R-TX) has introduced a so-called Social Security “reform” bill that will result in benefit cuts, raise the retirement age to 69, and reduce Cost of Living Adjustments (COLAs) that seniors on fixed incomes rely on. House Speaker Paul Ryan, who Tuesday gaveled the 115th Congress into session, has long promised to privatize Medicare, turning it into a voucher (or “Coupon Care”) program that would leave future beneficiaries to fend for themselves in the private insurance market while traditional Medicare slowly dies. This will mean skyrocketing premiums and reduced coverage for seniors thrust into the private insurance market.
The 115th Congress just took the first procedural steps to repeal the Affordable Care Act, which not only jeopardizes health care coverage for 30 million Americans, but puts real improvements to Medicare at great risk. If the Affordable Care Act is recklessly repealed, seniors will lose free preventative screenings under Medicare. The Part D prescription drug “donut hole” will open up again, costing more than 11 million Medicare beneficiaries $2,100 per person on prescriptions. Worse yet, Medicare beneficiaries will face higher premiums and deductibles to make up for the roughly $800 billion in cost savings that the ACA provided over 10 years. Insurers will once again be able to overcharge or deny coverage to people with pre-existing conditions.
Combine this with GOP plans to block-grant Medicaid, which millions of seniors depend on for nursing home care and long term care services, and Americans are confronting a full-fledged assault on their earned benefits and income security. As the 115th Congress convened yesterday, Democrats promised vigilance. Incoming Senate Democratic leader Chuck Schumer declared from the Senate floor, “We demand that (Trump) keep his promise not to cut Social Security and Medicare… We will hold the President-elect accountable.” On GOP efforts to dismantle the Affordable Care Act, Schumer warned, “It is not acceptable to repeal the law, throw our health care system into chaos” and leave the solution for another day. Senator Bernie Sanders has called for a national Day of Action on January 15th “to oppose any cuts to health-care plans or subsidies,” including rallies in Congressional districts across the country.
We stand with our allies on Capitol Hill, our fellow advocacy groups, and our millions of members to protect Social Security, Medicare, Medicaid, and the Affordable Care Act. We see the danger quite clearly… and hope that the seniors and their families who sat around holiday tables the past two weeks will, too.
Posted on 12/21/2016 3:05 PM By NCPSSM
While we at the National Committee extend warm holiday wishes to all our readers, the joy of the season is overshadowed by the knowledge that the coming year is full of unprecedented peril for our cherished income security programs – and our health care.
Throughout the year, we warned about the dangerous positions Trump and the GOP had taken on Social Security, Medicare, Medicaid, and the Affordable Care Act. As early as March, we exposed Trump’s past statements in favor of raising the retirement age to 70 and privatization. At the same time, we warned about renewed GOP plans to slash Medicare benefits. In June, we predicted that Speaker Ryan and Donald Trump would eventually join forces to privatize Medicare. After Donald Trump locked up the nomination, we flagged the dangers to Social Security in the Republican platform. When Trump picked his running mate, we shined a harsh light on Mike Pence’s long history attacking Social Security and Medicare. After the election, the National Committee began pushing back against the GOP’s race to dismantle our income security programs, beginning with a benefit-slashing bill by House Social Security Subcommittee Chair Sam Johnson, and Trump’s naming a notorious privatizer for Health and Human Services Secretary.
Make no mistake about it, the GOP-led 115th Congress will waste no time implementing their plans to destroy Medicare and Social Security as we know it – and repeal the Affordable Care Act. President-elect Trump has offered no assurance that he will stand by his campaign promise not to touch Social Security and Medicare, and as we reported, his past statements on both programs are not comforting. Pending legislation on Capitol Hill could cut Social Security benefits by 1/3, raise the retirement age, and decrease COLAs. If Paul Ryan gets his way, Medicare will be turned into “Coupon Care” and seniors will be given vouchers to fend for themselves in the private insurance market. Thirty million Americans could lose health insurance (including a disproportionate number in areas that Trump won in November) if the Affordable Care Act is repealed (not to mention the lost improvements to Medicare included in the ACA). Americans who depend on any of these programs could sink into poverty.
Working Americans, the disabled, seniors, and their families should know what’s at stake – and they must participate in the movement to stop Republicans from snatching away their earned benefits and health care. The National Committee will vigorously lobby members of Congress, gather millions of petition signatures, and encourage working Americans to contact their elected representatives about these critical issues. We will partner with our allies to promote an agenda that protects – and boosts – our earned benefits instead of slashing them. So, by all means enjoy the holidays and ring in a peaceful New Year. Then… let’s shift gears into battle mode and stop the war on the working class together.
Posted on 12/19/2016 3:02 PM By NCPSSM
After his re-election in 2004, President George W. Bush declared he would spend his political capital to realize a long-held conservative goal: end Social Security as we know it and turn it over to Wall Street. Bush didn't realize he had stepped on a political landmine. I was Executive Vice President of the National Committee to Preserve Social Security and Medicare in 2005, when we beat back Bush's attempt to privatize one of America's most popular and successful government programs.
We and other advocacy groups banded together to oppose the plan. We lobbied on Capitol Hill. We held town halls and rallies across the country. We mobilized at the grass roots level. We mounted a paid media campaign. By the summer of 2005, Bush's scheme was dead. Not a single piece of privatization legislation made it to the floor in Congress. The people had spoken: Hands Off our Social Security!
Here we are, eleven years later, facing another existential threat to our health and retirement income security. But this time the threat is worse, the peril more palpable. The millions of workers, retirees, the disabled and their families who depend on Social Security and Medicare have cause for grave concern. Why do I say that? After all, we prevailed in saving Social Security in 2005, with Republicans in control of the White House and Congress - just like today. But there are several key differences between then and now:
*In 2005, there were more GOP moderates in the House and Senate. There was no Tea Party or Freedom Caucus. We've seen in the past 6 years how these extremists are the tail that wags the dog in the House. They are determined to privatize or cut Social Security and Medicare, and they have considerable clout with the House GOP leadership.
*The 2005 privatization proposal came from the White House; Congressional Republicans were lukewarm to the idea of monkeying with Social Security. Today, House Republicans are leading the charge to privatize both programs. While Speaker Paul Ryan nearly salivates at the opportunity to convert Medicare into "Coupon-Care", the House Social Security Subcommittee Chairman, Sam Johnson (R-TX), has already introduced a bill that would raise the Social Security retirement age, slash benefits, and cut Cost of Living Adjustments (COLAs). No doubt, similar GOP bills will quickly follow in the new Congress this January.
*On the Senate side, the two most powerful Republicans on this issue have openly advocated "Social Security reform" - which is usually code for replacing guaranteed benefits with personal investment accounts. Senate GOP leader Mitch McConnell has perpetuated the myth that Social Security and Medicare have "driven the [national] debt," going so far as to call these cherished entitlement programs "the single biggest threats to our future." Meanwhile, Senate Finance Committee Chairman Orrin Hatch peddles the falsehood that Social Security "will be bankrupt unless we enact significant reform."
*President-elect Trump, who promised not to touch Social Security and Medicare during the campaign, advocates reform on his transition website and nominated a fervent privatizer, Rep. Tom Price, as Secretary of Health and Human Services. His second in command, Governor Mike Pence, is a well-documented privatization proponent. We can't count on Mr. Trump to protect current and future Social Security beneficiaries.
The movement in Washington to gut our most crucial social insurance programs - not only Social Security and Medicare, but Medicaid, too - amounts to nothing less than a war on the working class: people at all levels of income and employment who are counting on retirement income and health security. We in the advocacy community, empowered by workers and beneficiaries across the country, are gearing up for battle.
We are gathering millions of petition signatures demanding that Congress keep its hands off of Social Security and Medicare. We are organizing phone banks and letter writing campaigns to our elected representatives. Borrowing a campaign idea from Mr. Trump, we also need to build a wall - a firewall to be specific - in the Senate, to ensure that none of the privatization or benefit-cutting legislation makes it out of Capitol Hill and up to 1600 Pennsylvania Avenue.
Senate Democrats and Independents must stand together. Incoming Senate Minority Leader Chuck Schumer and Senator Bernie Sanders will make that happen with the reinforcement of seniors' advocates. However, several in the GOP must also stand with Democrats to put a simple majority vote out of reach. Senators including John McCain (AZ), Susan Collins (ME), Lamar Alexander (TN), and Charles Grassley (IA) know how important Social Security and Medicare benefits are to their constituents - and value the billions of dollars pumped into their state economies. We call upon these Senators to stand up for the future retirement security of America's workers.
There is no question the struggle will be harder than it was in 2005. The political climate is more hostile. The forces aiming to destroy our treasured social insurance programs are more insidious. The stakes are higher. But we can protect Social Security and Medicare and keep them solvent for the future without cutting benefits for millions of Americans if we organize, mobilize, and make our voices heard on Capitol Hill.
Together, we can stop this war on the working class.