The Roadmap to Privatization
By NCPSSM | February 3, 2010
It appears the GOP Budget philosophy is…if at first you don’t succeed with a failed idea try, try again (and again, and again.) This week the ranking Republican on the House Budget Committee, Paul Ryan, reintroduced his “Roadmap for America’s Future”.
In short, it is a budget plan which decimates Social Security and Medicare in the name of deficit reduction. The only thing new about this strategy, is the fact that Rep. Ryan isn’t shy about acknowledging that he believes seniors should foot the bill for our current economic nightmare.
Ezra Klein described the plan this way:
To move us to surpluses, Ryan’s budget proposes reforms that are nothing short of violent. Medicare is privatized. Seniors get a voucher to buy private insurance, and the voucher’s growth is far slower than the expected growth of health-care costs. Medicaid is also privatized. The employer tax exclusion is fully eliminated, replaced by a tax credit that grows more slowly than medical costs. And beyond health care, Social Security gets guaranteed, private accounts that CBO says will actually cost more than the present arrangement, further underscoring how ancillary the program is to our budget problem.
Let’s see, seniors have to find private insurers who will accept their vouchers which will by definition cover less and less of what health care actually costs. In other words, let’s ignore any effort to reign in the skyrocketing costs of health care nationwide in favor of shifting all of those skyrocketing costs directly to seniors. This is a roadmap for disaster.
The CBO said this about the Ryan plan:
Both the level of expected federal spending on Medicare and the uncertainty surrounding that spending would decline, but enrollees’ spending for health care and the uncertainty surrounding that spending would increase.
Under the Roadmap, the value of the voucher would be less than expected Medicare spending per enrollee in 2021, when the voucher program would begin. In addition, Medicare’s current payment rates for providers are lower than those paid by commercial insurers, and the program’s administrative costs are lower than those for individually purchased insurance. Beneficiaries would therefore face higher premiums in the private market for a package of benefits similar to that currently provided by Medicare.
Moreover, the value of the voucher would grow significantly more slowly than CBO expects that Medicare spending per enrollee would grow under current law. Beneficiaries would therefore be likely to purchase less comprehensive health plans or plans more heavily managed than traditional Medicare, resulting in some combination of less use of health care services and less use of technologically advanced treatments than under current law. Beneficiaries would also bear the financial risk for the cost of buying insurance policies or the cost of obtaining health care services beyond what would be covered by their insurance.
As for Social Security, the GOP Roadmap leads to the same privatization dead-end for seniors, who are already reeling from Wall Street excesses and collapse which have decimated their nest-eggs. Once again, just as we saw in President Bush’s failed privatization plan, long-term solvency isn’t the goal. The goal is to turn Social Security over to Wall Street through the creation of Social Security private accounts.
Texas Rep. Jeb Hensarling describes it as a little “re-engineering” of the social contract.
Visit msnbc.com for breaking news, world news, and news about the economy
That “re-engineering” would put your Social Security in the hands of the same Wall Street money managers the federal government just bailed out. What would your Social Security look like now, if we had privatized the system two years ago? Here’s what CAP reported back in 2008, before the worst of the economic collapse…
As a Center for American Progress Action Fund report found, under a Bush-style privatization plan, a October 2008 retiree would have lost $26,000 in the market plunge. If the U.S. stock market had behaved like the Japanese market during the duration of that retiree’s work life, “a private account would have experienced sharp negative returns, losing $70,000 — an effective -3.3 percent net annual rate of return.” And this doesn’t take into account the full plunge of the stock market, which dipped below 7,000 in March 2009.
As the Cunning Realist pointed out, failed investment banks Bear Stearns and Lehman Brothers were both “blue chips, the sort of companies that proponents of private accounts insisted any new system would be limited to.” Can you imagine the mess that would have occurred — and the leverage those companies would have held — had not only the financial system’s health, but the retirement accounts of untold seniors, been tied up in them?
The Center for Economic and Policy Research found that, “as a result of the collapse of the housing bubble, the vast majority of baby boomers will be approaching retirement with little wealth outside of Social Security.” Privatization opponents would have had seniors sacrifice that safety net as well.
Destroying Social Security and Medicare, under the guise of deficit reduction, isn’t about creating sound economic policy it’s just more of the same old privatization politics, rewrapped, repackaged and rejected by the American people just two years ago.
Are our collective memories really so short? Because the truth is…this roadmap puts America’s seniors on a highway to hell.
Topics: Uncategorized | 1 Comment »
Budget Breakdown for Seniors
By NCPSSM | February 1, 2010
Policy analysts all over town are pouring over the President’s budget searching for answers about funding levels for their issues and programs. What’s up, what down? The President summed up the budget challenges this morning…
Of course, seniors want to know about Social Security and Medicare. Here is what the White House has to say in it’s Fact Sheet for Seniors:
To support our Nation’s seniors, the Budget will:
Protect Social Security. The President recognizes that Social Security is indispensable to workers, people with disabilities, seniors, and survivors and is probably the most important and most successful program that our country has ever established. Based on current forecasts, Social Security can pay full benefits until 2037. The President is committed to making sure that Social Security is solvent and viable for the American people, now and in the future. He is strongly opposed to privatizing Social Security and looks forward to working in a bipartisan way to preserve it for future generations.
Protect and Improve Medicare. The President recognizes that Medicare is a sacred trust with America’s seniors and supports policies that will strengthen the Medicare program and extend the life of the Medicare trust fund. The Budget includes new Medicare and Medicaid demonstration projects that evaluate reforms to provide higher quality care at lower costs, improve beneficiary education and understanding of benefits offered, and better align provider payments with costs and outcomes. Special emphasis will be placed on demonstrations that improve care coordination for beneficiaries with chronic conditions, that better integrate Medicare and Medicaid benefits for beneficiaries enrolled in both programs, and that provide higher value for dollars spent.
Reduce Social Security Backlogs, Improve Customer Service, and Cut Waste. The Budget proposes $12.5 billion for the Social Security Administration (SSA), an increase of $925 million, or 8 percent, above the 2010 enacted level of $11.6 billion. This amount includes resources to increase staffing in 2011 and will allow SSA to provide services faster with a focus on key service delivery areas, such as processing initial retirement and disability claims, and disability appeals. It will enable SSA to lower the initial disability claims backlog and the appeals hearing backlog. The Budget also dedicates a significant amount of funds to Social Security program integrity efforts so that the right amounts are paid to the right person at the right time.
Fight Waste and Abuse in Medicare and Medicaid. Reducing fraud, waste, and abuse is an important part of restraining spending growth and providing quality service delivery to beneficiaries. In November 2009, the President signed an Executive Order to reduce improper payments by boosting transparency, holding agencies accountable, and creating incentives for compliance. This Budget puts forward a robust set of proposals to strengthen Medicare, Medicaid, and CHIP program integrity efforts, including proposals aimed at preventing fraud and abuse before they occur, detecting it as early as possible when it does occur, and vigorously enforcing all penalties and recourses available when fraud is identified. It proposes $250 million in additional resources that, among other things, will help expand the Health Care Fraud Prevention & Enforcement Action Team (HEAT) initiative, a joint effort by the Departments of Health and Human Services and Justice. As a result, the Administration will be better able to minimize inappropriate payments, close loopholes, and provide greater value for beneficiaries and taxpayers.
In addition, to help those most affected by the recession, the Budget will extend emergency assistance to seniors and families with children, Unemployment Insurance benefits, COBRA tax credits, and relief to states and localities to prevent layoffs.
The emergency assistance referenced here is a one-time payment of $250 to seniors who did not receive a Social Security cost-of-living increase for the first time since its creation. This is something seniors desperately need as they continue to struggle thru this economic recession.
Tribune’s Swampland blog has a concise ‘Winners and Losers’ description. Of course, now it’s Congress’ turn to craft budget resolutions of its own. Or as CBS News puts it:
“Staffers all over the Capitol are pouring over each proposed cut and each spending proposal carefully to start picking which battles need to be fought.”
Topics: Budget, Medicare, Social Security | Comments »
Fast-track Commission Derailed in Senate
By NCPSSM | January 26, 2010
… Seniors Applaud today’s Senate Vote Defeating Conrad/Gregg’s Fast Track Commission
Following is our press statement after the vote:
“America’s seniors understand what this commission proposal has been all about from the beginning—finding a way to balance the budget on the back of Social Security. For too long, fiscal hawks have tried to blame Social Security for the nation’s fiscal problems even though the program has not contributed one dime to our nation’s bleak debt and deficit picture. We are thankful the Senate saw through this political fiction. They are to be commended for refusing to turn over their legislative responsibilities to a fast-tracked process that would cut benefits absolutely essential to millions who depend on Social Security.” …Barbara B. Kennelly, President/CEO
National Committee members have been calling, writing, and emailing Congress expressing their opposition to the Conrad/Gregg Commission. The National Committee ran radio, print and internet ads this week and joined other seniors’ advocates to flood the Senate with thousands of letters and phone calls against the Conrad-Gregg Fast Track Commission proposal. They are strongly opposed to any efforts to reduce Social Security benefits in order to balance the federal budget. Social Security represents the bedrock retirement income of nearly every American providing a modest benefit of only $13,800 a year for the average retiree. It is the only source of retirement income for nearly 20 percent of retirees and represents over half the income of nearly two-thirds of beneficiaries.
Next up…White House proposals to create it’s own version of the “Debt” Commission, expected to be announced in the State of the Union address tomorrow night. More on that to follow!
Topics: Barbara B. Kennelly, Medicare, Social Security, entitlement reform | Comments »
Should Middle Class workers and Seniors Pay America’s Debt Bill?
By NCPSSM | January 25, 2010
A USA Today’s editorial tells us they should.
“Yet whenever someone says the popular programs need to be trimmed, the “don’t-touch-my-Medicare” and “don’t-touch-my Social Security” lobbies come out in full force. As long as Democrats refuse to curb benefits and Republicans refuse to raise taxes, the country slips ever closer to disaster. To be sure, there’s bloat in the federal bureaucracy and defense spending. But the real drivers of looming deficits are Medicare, projected to grow from $516 billion this year to $932 billion in 2018, and Social Security, forecast to grow from $581 billion this year to $966 in 2018 as Baby Boomers retire.”
Unfortunately, USA Today follows the “lump it all together” strategy popularized first by the Bush administration and continued today by anti-entitlement foes. The vast majority of the “looming deficits” we face are in Medicare which is suffering from the same skyrocketing health care costs seen system wide. Refusing to pass health care reform is a far bigger threat to our debt and deficit picture than Medicare singularly. And while Social Security will payout more over the next decade as baby boomers retire, this isn’t news to anyone. Workers have been paying extra payroll taxes for decades to build up a trust fund to cover this demographic bulge. Of course, Congress has already spent that money elsewhere. USA Today doesn’t even touch on that issue.
Our President/CEO, Barbara Kennelly, provided the Opposing View to today’s editorial. Her response focuses on plans to create a commission to target just the kind of cuts USA Today champions:
“Creating a commission that places a big red target on Social Security is an incredibly bad idea because Social Security is not the problem. Shifting blame onto social programs for the economic collapse caused by Wall Street excess, tax cuts during two wars and a housing bust ignores one basic fact: Social Security hasn’t contributed one dime to our nation’s bleak deficit and debt picture. In fact, the extra contributions made by American workers to build up the Social Security trust fund surplus have been used for decades to cover up our true budget picture. In classic Washington style, so-called fiscal hawks have selectively redefined our debt and deficit problem in order to fit their preconceived solution — cutting Social Security. And the political cover of a commission is just what they need to do their dirty work.
America’s seniors want fiscal accountability to return to Washington. However, they understand that creating a commission to target deep cuts in a program that has kept millions of American afloat, while at the same time Wall Street executives claim million dollar bonuses thanks to a government bailout, is not fiscal responsibility. They are strongly opposed to the budget cutters’ strategy to use Social Security as a piggy bank to pay down the debt and balance our federal ledgers.
The political fiction underlying the creation of this commission consists of misleading claims that Social Security is an “entitlement monster” that is “bankrupting” our nation. Fiscal hawks have argued, even in times of budget surpluses, that our nation can’t afford a Social Security program which provides an average retirement benefit of $13,800 per year. In fact, as this economic collapse has proven once again, we can’t afford not to preserve and strengthen this basic retirement income for Americans. Slowing the rate of growth in healthcare spending nationwide, revisiting our tax priorities, and closing the long-term Social Security shortfall are judicious strategies that can bolster the economic picture for our country. However, these are not the stated goals of commission proponents.
Our elected officials must understand what millions of seniors, the disabled, and their families already know; a commission is a predefined solution to a misdiagnosed problem putting a target squarely on middle class America, young and old alike. “
The Senate will vote on its fast-track entitlement Commission proposal tomorrow. Already, our members have sent Congress thousands of emails and phone calls urging them to vote NO on plans to sub-contract Congress’ work to a commission with one goal in mind…cutting Social Security and Medicare.
Take a minute and use our Legislative Action Center to send an email or our Legislative Hotline 1-800-998-0180 to call your Senator.
Topics: Barbara B. Kennelly, Medicare, Social Security, entitlement reform, healthcare | Comments »
The Status Quo is Not an Option for Seniors in Medicare
By NCPSSM | January 22, 2010
There’s been plenty of hand-wringing, Monday morning quarterbacking and fortune telling about what the Democrats’ loss of 60 votes in the Senate really means for health care reform.
Any way you cut it…it can’t be good. The current system doesn’t work and we simply can’t allow political tide shifts to stop vital health care reforms.
American seniors, especially, have a lot at stake in this health care reform debate. The Medicare provisions included in health care reform bills being debated now are among the most beneficial reforms for seniors since Medicare’s creation. Closing the Part D doughnut hole, allowing government negotiation of drug prices in Part D, and eliminating billions of dollars of wasteful subsidies to private insurers in Medicare are dollars-and-cents and common sense reforms.
We’ll continue to work hard to mobilize support for Medicare proposals that would improve efficiency and care for millions of Medicare beneficiaries while also providing savings for system-wide health care reform efforts. We’ll also work to defeat provisions which don’t benefit seniors in Medicare such as the Medicare Commission provision being debated. Contrary to the rhetoric heard from opponents, these bills don’t cut Medicare; rather they includes provisions to ensure that seniors receive high-quality care and the best value for our Medicare dollars. Without system wide health care reform, the skyrocketing costs of health care will continue to climb unchecked making Medicare unsustainable.
That’s why inaction is the true threat facing Medicare.
Topics: Medicare, Part D, healthcare | Comments »
National Call-In Day Underway
By NCPSSM | January 19, 2010
Tomorrow the Senate will consider a proposal to create a fast-track commission targeting Social Security and Medicare for cuts. Fiscal hawks in Congress have selectively redefined our debt and deficit problem in order to fit their preconceived solutions — cutting Social Security and Medicare – and they see this commission as the best political way to get that job done. Rather than address the real causes of our national debt including; a decade of borrow and spend policies, skyrocketing health care costs, tax cuts for the wealthiest Americans and two unfunded wars some in Congress are intent on making Social Security and Medicare pay the price.
Of course, this makes no sense especially for the millions of Americans and their families who know that without Social Security and Medicare, this economic collapse would have been even more devastating for so many. That why today is the National Call-In Day for Americans to tell their members of Congress…Vote NO on this undemocratic commission proposal.
Take a moment and join the Call In by dialing
800-998-0180
There’s also a new video, produced by OWL, we recommend you watch and share.
Don’t have time to call…send Congress a quick email and our Legislative Action Center will connect you directly.
Topics: Medicare, Social Security, entitlement reform, privatization | 1 Comment »
Seniors Mobilize in Opposition to Fast-track Commission Targeting Cuts to Social Security
By NCPSSM | January 15, 2010
Next week we’ll kick off our radio and print advocacy campaign in Washington urging Congress to oppose creation of a fast-track entitlement commission. Our National Committee to Preserve Social Security and Medicare members and supporters have made it clear they oppose creating a commission which targets cuts to the very programs, which have kept seniors afloat during these tough economic times. The Conrad/Gregg Commission proposal will be voted on during the Senate debate on extending the debt limit next week.
Contrary to the political rhetoric, Social Security and Medicare did not cause our economic problems. Seniors believe fiscal discipline is needed, but not at the cost of crippling Social Security and making seniors the scapegoats for the excesses of Wall Street. You can see a sneak peak of next week’s Print Ad here.
Radio ads will also run in Washington during the week before the Senate vote. You can listen to our radio campaign here. National Committee President/CEO, Barbara Kennelly, tells listeners:
“There’s a move in Congress to paint a big, red target on Social Security and create a commission to pull the trigger. Americans have a right to the Social Security benefits they’ve earned. But fiscal hawks want Social Security to pay the tab for years of borrow and spend policies and Wall Street excess. Congress should understand what seniors already know – a commission will cut Social Security.”
National Committee members have been calling, writing, and emailing Congress expressing their opposition to the Conrad/Gregg Commission. Next week, we’ll also join other seniors’ advocates such as OWL, AFSCME Retirees, Alliance for Retired Americans, American Association of University Women, Generations United, National Senior Citizens Law Center, NOW, Pension Right Center and Wider Opportunities for Women (WOW) in a January 19th Call In Day to flood the Senate with phone calls against the Conrad-Gregg Fast Track Commission proposal. Take a moment and join the Call In by dialing
800-998-0180
The National Committee has also written members of the Senate urging them to reject the creation of a commission targeting Social Security. The letter is available on our website.
Still need more? “Fast Track”, the National Committee’s YouTube video describing the Commission proposal and its impact on Social Security and Medicare is posted on our YouTube channel .
Topics: Social Security, Uncategorized, entitlement reform | 1 Comment »
This Picture is Truly Worth a $Billion Words
By NCPSSM | January 13, 2010
We’ve written a lot this New Year about the Peterson Foundation’s billion dollar campaign to persuade Americans that we can’t afford Social Security and Medicare…especially the organization’s ongoing efforts to persuade Congress to create a commission targeting these programs for cuts. A Senate vote on the commission proposal is expected anytime after they return, January 20.th
Most recently, the news has focused on where some of that billion dollars is being spent. Specifically, the creation of a “news service” to feed Peterson funded propaganda to organizations like the Washington Post. That’s how we found our new favorite website…muckety.com. They too covered the Washington Post sellout but the best thing about their story was a graph that shows just how far the Peterson Foundation’s tentacles reach into the moneyed elite on Wall Street and in Washington.
By expanding just a few of the boxes, (you can dig even further than in this graph) you can see a clear picture of the organization’s deep Wall Street ties. It certainly explains why these so-called “fiscal hawks” support Wall Street tax breaks and bailouts while at the same time calling for cuts in Social Security and Medicare. It’s Wall Street vs. Main Street , once again.
Topics: Budget, Medicare, Social Security, Uncategorized, entitlement reform, privatization | 2 Comments »
What’s on your Mind?
By NCPSSM | January 12, 2010
The White House wants to know. Really.
As President Obama wraps up his first year in office, the White House is providing access to administration advisors throughout the week on a variety of topics. Each day a senior advisor will provide a guest blog post.
Then, in the afternoon, that advisor will host a live video chat with the public. If you’re into Facebook you can also join the discussion there.
Let the administration know how important Medicare and Social Security are to you. If you really want to shake things up…give them your thoughts on the Part D donut hole, rising drug costs and the privatization of Medicare! Tomorrow you can post your questions to HHS Secretary Kathleen Sebelius at Noon.
Here’s a summary of the event so far this week. And Here’s the schedule for the rest of the week:
- Wednesday, 12:00 EST: HHS Secretary Kathleen Sebelius will talk about health reform, from how far we’ve come to how reform will benefit American families and small businesses
- Thursday, TBD: The nation’s first Federal Chief Technology Officer, Aneesh Chopra, will join Norm Eisen, special counsel to the President for ethics and government reform, to talk about all the ways in which the President has changed Washington.
- Friday, 1:00 EST: Christina Romer, Chair of the Council of Economic Advisers, talks about the President’s primary focus on restoring the economy for all Americans and creating jobs for the American people.
Topics: Aging Issues, Medicare, Part D, healthcare | 1 Comment »
Fast Tracking Cuts to Social Security and Medicare
By NCPSSM | January 7, 2010
Our New Web Video details the New Year’s surprise Fiscal Hawks hope to Deliver to millions of Americans in 2010
The National Committee to Preserve Social Security and Medicare has produced a new video on Congressional proposals to create an Entitlement Commission targeting massive cuts to Social Security and Medicare. The Commission plans would put these cuts on the legislative fast track with limited debate and no amendments.
The commission idea certainly isn’t new; however, fiscal hawks are now using the economic mess created by years of failed borrow and spend policies as an excuse to balance the budget on the backs of Social Security and Medicare. The National Committee and its millions of members and supporters know that these vital programs have provided the only stable and reliable retirement benefits for millions of Americans suffering during this devastating economic recession. Contrary to the political rhetoric, Social Security and Medicare did not cause our economic woes; instead, they certainly have reduced the suffering for millions of seniors and their families.
This web video is just the latest in a long list of efforts by the National Committee to educate the public and Congress about the true consequences of this Commission, including:
Latest Letters to Congress here and here.
Blog Posts on Entitled to Know here, here, and here.
President/CEO, Barbara B. Kennelly’s Post on Huffington
Viewpoint – Commissions, Cuts and Crisis Calls
Topics: Medicare, Social Security, entitlement reform | 1 Comment »
« Previous Entries