Why Seniors Should Watch Senator-elect Al Franken
By NCPSSM | July 1, 2009
We say watch Al Franken, not because he’s a former comedian turned Senator (and Washington loves ‘celebrities’) or because his election fight seemed never-ending or even because he’ll play the critical role as the 60th Democrat in the Senate. American seniors should keep their eyes on Al Franken because he “gets it”. He understands the importance of Social Security uniquely and personally. You see…his wife, Franni, lost her father when she was just a toddler. Her mother and her four siblings survived on Social Security survivor benefits. Franken tells her story in his book, The Truth (With Jokes):
“Franni takes the same attitude toward Social Security that she took to our kids when they were toddlers. Don’t touch. If you touch them, I will destroy you.
See, when Franni Bryson was seventeen months old, her father, Donald, a World War II vet, died in a car accident on his way home from his job at the paper mill. That left her twenty-nine-year-old mother to take care of Franni and her four siblings-Kathy, seven; Carla, five; Neil, three; and Bootsie, threemonths old. Franni’s mom has a high school education and, as soon as Bootsie started school, got a job working odd hours in the produce department at a nearby supermarket. Her paycheck, a very small veterans’ widows’ benefit, and the survivor benefits from Social Security weren’t always enough to keep the heat on during the Maine winters, or the telephone or the lights for that matter, but they did put food on the table. (Though a terrific cook, my mother-in-law sometimes had to serve fried dough to feed her family).
Today, Social Security survivor benefits are giving financial protection to 2 million children who’ve lost a working parent. Benefits for an average wage earner who dies and leaves a spouse and two children is equivalent to a $433,000 life insurance policy. The average monthly payment for the same family is about $2,243 per month. As Franni Bryson’s personal story illustrates, that monthly check can make a huge difference in maintaining the surviving family’s quality of life.
“Frannie vs. Bush” is the title of an entire chapter in Franken’s book detailing President Bush’s failed privatization campaign and the historical events leading up to his attack on Social Security. As promised, it is the truth (with jokes). We’ll be watching and hoping for more of the same in the U.S. Senate.
Topics: Social Security | No Comments »
Bush Tax Cuts Continue to Hurt Social Security
By NCPSSM | June 30, 2009
While deficit projections made the headlines in recent coverage of the Congressional Budget Office’s Long-Term Budget Outlook, we were especially interested in Chapter 3 on Social Security.
Since years and dates are always what people ask about first when talking about Social Security, here are CBO’s dates: analysts say Social Security will be able to pay full benefits until the year 2047 or 2045 (depending on which fiscal scenario is used). That’s up to a full decade longer than projected in the 2009 Social Security Trustees Report. CBO also continues to make the case for health care reform as a top fiscal priority:
“Constraining the costs of those health care programs will be a key to developing a sustainable fiscal policy. Social Security has a smaller effect on the budget outlook: CBO projects that Social Security spending will increase from less than 5 percent of GDP today to about 6 percent in 2035 and then roughly stabilize at that rate through 2080.”
But what is even more interesting in this CBO analysis is its description of two fiscal scenarios, one (Extended Baseline Scenario) which allows the Bush tax cuts to expire with no alternative minimum tax (AMT) adjustments-meaning no change in current law-and another scenario (Alternative Fiscal Scenario) which includes these policy changes.
CBO’s analysis shows just how much damage the Bush tax cuts would do to the Social Security Trust Fund and our long-term debt. Extending these tax cuts (under the Alternative Fiscal Scenario) would worsen Social Security’s long-term solvency by .21%, meaning even larger cuts in benefits would be needed for long-term solvency. In other words, younger workers would get their tax cuts now and would likely suffer larger Social Security benefit cuts in the future. You can be sure that’s not a trade-off Congressional tax-cutters are too eager to advertise.
Bruce Webb at Angry Bear describes the tax cuts’ impact on long-term debt this way:
“So if we let the Bush tax cuts sunset we buy ourselves about 20 years to figure out what to do long-term. If we extend them we are looking at a situation by 2037 where debt held by the public is a full 200% of GDP as opposed to 75% under current law (i.e. tax cuts sunset). So those people who are attacking Obama spending effects on the deficit over the next 10 to 20 years using CBO numbers need to confront the fact that there is a lot more long term impact from the foolish policy of tax cuts on top marginal rates.”
Topics: Retirement, Social Security, Uncategorized, entitlement reform, healthcare | No Comments »
Let’s See the Fine Print on PhRMA’s Doughnut Hole Promise
By NCPSSM | June 24, 2009
Following the old admonition that, “if you don’t have anything nice to say, don’t say anything at all”…we’ll start with the obvious truth. We’re glad the drug industry appears willing to take steps to reduce the outrageous coverage gap created when Medicare Part D was passed in 2003.
The so-called “doughnut hole” has trapped millions of seniors each year in a coverage limbo, where they pay full premiums but receive no prescription drug coverage. It’s a provision created by those who wanted to give drug makers and private insurers access to the senior market through the privatization of Medicare…without bearing the cost of full coverage.
PhRMA’s promise to spend about $30 billion over ten years to offer discounted coverage (for brand-name drugs only) to seniors in the doughnut hole is certainly a good start. However, this proposal does not eliminate the doughnut hole as we have advocated. There are also few details about where the remaining $50 billion in savings promised by PhRMA will come from. But some analysts predict, wherever they come from, it’s an investment that should pay off for drug makers:
“‘Apparently industry feels these concessions are manageable and will allow them to maintain credibility with Congress and the White House while preserving, and potentially expanding, the number of prescriptions written,’ said a market report by Washington Analysis distributed Monday. Wall Street analysts described the $80 billion giveback as a “good deal” for pharmaceutical companies, which they said would be more than offset by gains from selling more drugs to more insured. Many analysts estimate expanded insurance coverage could increase yearly drug sales in the U.S. by $9 billion to $12 billion, or 3% to 4% of annual sales.” Wall Street Journal, June 23
We believe there are a number of questions that must be answered as Congress considers this PhRMA offer as part of the larger healthcare reform debate:
- Will there be statutory language providing HHS enough leverage to enforce the discounts with pharmaceutical manufacturers?
- Will audits be sufficient to ensure that prices are not manipulated? (The drug industry has a history of gaming of the Average Wholesale Price which is used for reimbursement under Medicaid and Medicare.) What other safeguards will be provided in addition to audits?
- Will seniors benefit from the bulk of these promised savings?
- What cost savings will the federal government see and how will that impact Medicare?
Seniors need real relief from the Part D doughnut hole. We hope this is the first step toward getting there.
Topics: Medicare, Part D, Uncategorized, healthcare | No Comments »
Social Security and Medicare…Meet Facebook
By NCPSSM | June 17, 2009
Chances are someone has said to you lately…”Do you have a Facebook page yet?” And if that hasn’t happened to you yet, trust us it’s just a matter of time.
The social network has grown to more than 225 million active users with the fastest growing age demographic now 35-65 year-olds, especially women over 55. That’s why the National Committee is continuing its social media outreach with the creation of a Facebook Page and Group.
Please join the conversation and help us work to preserve and strengthen Social Security and Medicare for all ages by becoming a fan of our Facebook Page and a Member of our Facebook Group.
Topics: Aging Issues, Barbara B. Kennelly | No Comments »
Social Security and Medicare Videos Win National Honors
By NCPSSM | June 9, 2009
The National Committee to Preserve Social Security and Medicare, one of the nation’s largest membership organizations for seniors, has been selected as the winner of four coveted Videographer Awards, sponsored by the Association of Marketing and Communications Professionals. The video, “Then and Now”, chronicles the history of Social Security and Medicare and the National Committee’s 25-year legacy protecting these vital programs. Produced in celebration of our 25th anniversary, the video received two Awards of Excellence in the Special Events/Non-Profit and Corporate Image categories.
Two other National Committee videos produced as part of our educational outreach to younger and older audiences, also received high marks from the AMCA. “Don’t be Tricked…Privatization is No Treat” and “Tune Out the Noise” received Videographer Awards of Distinction. Organizers report about 1,800 entries were submitted to this year’s Videographer Awards and 14% were award winners.
A growing number of Americans are turning to the internet for their news and information making the National Committee’s YouTube channel an increasingly popular source of information for all generations. As one of the nation’s leading advocates for strengthening Social Security and Medicare for the future, the National Committee will continue to use video, internet campaigns, and social media to build support for the preservation of America’s most successful federal programs.
“Our National Committee videos and social media campaign help us to share the facts about Social Security and Medicare to an intergenerational audience. I’m especially excited about the National Committee’s new Facebook Page and Group. We’ll be looking for friends, fans, and members to join our movement to strengthen America’s commitment to Social Security and Medicare for all generations.” Barbara B. Kennelly, President/CEO
Find the National Committee in all of the following places:
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Topics: Uncategorized | 1 Comment »
Protecting Your Social Security benefit from Your Bank
By NCPSSM | June 3, 2009
Courtesy: Flickr-ncindc
Banks, these days, are about as popular as politicians are. So, news about the growing number of Social Security beneficiaries losing their benefits to bank fees and garnishments certainly won’t win the industry any more friends or allies.
The Wall Street Journal provides a detailed description of a banking loophole, which has allowed many banks to seize Social Security funds from seniors’ accounts, even though federal law says creditors can’t take these protected funds to pay a debt.
“In April, for instance, U.S. Bancorp seized the Social Security survivor benefits of two children in Kalispell, Mont., when a creditor garnished the account for the children’s unpaid medical bills (the family has no health insurance). The benefits are the family’s primary source of income, following the death of the children’s father in 2007. Unaware that the account was frozen, the children’s mother, Nicole Murphy, 32, used a debit card to pay for gas and groceries for Easter. Each purchase triggered an insufficient-fund fee of $37.50. When the children’s account fell below zero, the bank debited a negative balance fee of $8 a day.
A lawyer with Montana Legal Services Association helped Mrs. Murphy unfreeze her account. But the bank again froze the account. On May 7, the U.S. Treasury deposited into the account a $250 Economic Stimulus payment, which the government sent to low-income households. But the payment was unavailable to the family because the account was frozen, and because the bank’s fees had created a negative balance.”
Again, federal law says creditors can’t take Social Security, disability, veterans’ and children’s survivor benefits, so how does this happen? It happens because the law doesn’t say how banks should protect direct deposit checks coming from SSA and other federal sources. According to the Social Security Administration’s Inspector General two-thirds of America’s 12 largest banks are violating federal law by garnishing over $30 million from accounts containing government benefits.
Unfortunately, all of this is also leading some seniors to opt out of using Social Security’s highly promoted (and cost saving) direct deposit program.
Yesterday, the California Supreme Court ruled that the Bank of America does not have to pay a $1.6 billion verdict in a customer suit claiming the bank illegally took overdraft fees out of Social Security direct deposits. Bank of America argues this practice isn’t debt collection but simply balancing the books.
Senators Herb Kohl and Claire McCaskill have written Treasury Secretary Timothy Geithner urging the administration to draft a rule protecting seniors from illegal bank garnishment.
In a similar letter to Secretary Geithner, four House Committee chairs also urge the administration to intervene immediately:
“…the economic downturn has also caused my distress among the most vulnerable Americans, such as retirees and people with disabilities. Thus, the problem of aggressive and illegal debt collection practices targeting Social Security, SSI beneficiaries and veterans deserve immediate attention.”
Topics: Social Security | 1 Comment »
Medicare: A Critical Element of Health Care Reform
By NCPSSM | May 22, 2009
We gathered an impressive panel of senior advocates and health policy experts on Capitol Hill this week to discuss current efforts to reform our national health care system and a growing consensus that Medicare should play a role in that debate.
The National Committee and the Alliance for Retired Americans co-sponsored this panel discussion, focusing on a number of issues including; Medicare Advantage overpayments, cost containment proposals, out-of-pocket costs, Low Income and Part D improvements.
The briefing began with the National Committee’s latest video “Medicare = Health Care Reform“.
Dr. Brian Biles, Professor at George Washington University’s School of Public Health and Health Services, detailed a variety of strategies to trim or eliminate an estimated $150 billion dollars in Medicare Advantage overpayments going to private insurers over the next decade. He also provided an important historical reminder of how these subsidies were created in the first place.
Marilyn Moon is the Vice-President and Director of the Health Program at the American Institutes for Research. She detailed a number of Medicare improvements she’d like to see included in any health care reform package.
The Center for Medicare Advocacy knows first hand the impact skyrocketing out-of-pocket costs has on beneficiaries. Vicki Gottlich is the Center’s Senior Policy Attorney and she described the critical need for limits on out-of-pocket costs in Medicare.
As the nation’s largest purchaser of health services, it is inevitable that policymakers will look to Medicare - both as a model and as a tool for system wide health care reform. Reforming health care is vital to our nation’s long-term economic health and today’s panelists say improving Medicare is critical to that health care reform effort.
Video clips and power point slides from this panel discussion along with relevant position papers are also available on our website.
Topics: Barbara B. Kennelly, Medicare, Medicare Advantage, Part D, healthcare, privatization | No Comments »
The Truth about the 2009 Social Security and Medicare Trustees Report
By NCPSSM | May 12, 2009
Here’s the bottom line from this year’s Trustees Report:
- Social Security is still fully funded for 28 years
- No COLA increase planned for retirees
- Skyrocketing health costs nationwide continue to threaten Medicare
Undoubtedly, these facts truths will probably be buried in coverage of this year’s Trustees report as the anti-entitlement crowd revs up its billion dollar engine to convince the media and Americans that this time there really is a crisis. They’re using the recession and new math as the foundation for the same old crisis calls. Michael Lind did a wonderful piece on Salon on the Trustees report and the well-financed crisis campaign against Social Security and Medicare.
Our President Barbara Kennelly says:
“Contrary to alarmists’ claims of impending doom for Social Security, this Trustees Report confirms what we already know-Social Security will weather this recession, continuing to provide vital benefits for millions of retirees. I’m sure this 4 year adjustment will rally the doom and gloom crowd, which has been claiming there’s a crisis for years. But let’s not forget, today’s report projects Social Security will pay full benefits for nearly 30 years which is almost a decade more than the trustees predicted just twelve years ago.”
Fact: The 2009 Trustees report shows Social Security is not facing an immediate threat.
Trustees project Social Security will be able to pay full benefits until the year 2037. After that, Social Security will have sufficient revenue to pay 76% of benefits. The change in short-term projections is a fiscal problem, not a Social Security problem. Social Security’s trust fund surplus is not disappearing as some have claimed. What is happening is the annual cash surpluses collected in payroll taxes are below last year’s projections due to the economic downturn. Moreover, Trustees report a healthy $2.6 trillion in accumulated Social Security assets and project that, even after factoring in the effects of the recession, full benefits will be paid for another 38 years. Low inflation could mean two years of no cost of living increases for beneficiaries. By statute, zero COLA’s would also mean no Medicare Part B premium increase for about three-quarters of all beneficiaries. However, the remaining beneficiaries, including newly enrolled seniors and higher income seniors, will see larger premium hikes in Part B to cover the difference. Premiums for Part D, the prescription drug benefit, are not subject to this limitation and are expected to continue increasing by 11% annually through 2018.
Fact: The 2009 Trustees report shows the persistent and rapidly rising cost of health care continues to threaten Medicare.
Trustees project Medicare’s Part A Trust Fund, which covers hospital services, will be exhausted in 2017. The cost of Medicare Part B is projected to increase by 8.5-9% annually, and Medicare Part D by 11% - more than double the projected 4.5% growth in GDP over the next decade. We must effectively address long-range cost containment across all public and private health care systems. Actuaries project that 67% of the average senior’s Social Security benefit check will be consumed by Medicare out-of-pocket costs by 2080. Some of the Medicare cost savings recommended to Congress by the Obama administration should be reinvested into the program to: lower drug prices through government negotiation, close the prescription drug doughnut hole and limit seniors’ out-of-pocket costs
Barbara told reporters today:
“Reforming health care is vital to our nation’s long-term economic health…system-wide and in the Medicare program. At least some of the savings proposed in Medicare should be reinvested to improve the nation’s largest health care provider. We must seize this historic opportunity to improve the quality of care to all Americans, young and old alike”
You can see our detailed analysis of this year’s Trustees report here.
Topics: Barbara B. Kennelly, Medicare, Social Security, Uncategorized, baby boomers, entitlement reform, healthcare | 2 Comments »
Seniors Ask…Why Social Security Now?
By NCPSSM | May 7, 2009
Majority Leader Steny Hoyer’s promise to put Social Security reform on the legislative agenda this fall has many seniors asking…why? America’s retirees understand the need to strengthen Social Security for future generations. For them, Social Security isn’t just a political issue — it’s what pays the bills. But given the long list of critical challenges this nation faces right now…it’s hard to imagine why Social Security would share space at the top of the legislative priority list with issues like health care reform, economic recovery and climate change. After all, Social Security is able to pay full benefits for at least 30 more years.
Here’s Roll Call’s coverage of Hoyer’s comments:
“Of our entitlement programs, I believe we would have the easiest challenge in reforming Social Security,” Hoyer said. “Frankly, I believe Social Security is not very difficult mathematically. It may be difficult politically, but not mathematically.”
But again, why now? Some worry Social Security will be used as a bargaining chip in the healthcare debate, others see this as part of ongoing efforts to balance the budget through entitlement program cuts.
Thankfully the House leadership understands that fast tracking such important legislation through Congress is not the way to go. Congress Daily reports:
While some lawmakers have proposed forming a commission to reform entitlements and the tax code, Hoyer said he preferred to go through regular legislative order, adding that he wants the public to be engaged in the entitlement reform process. “If the incentives are going to change, the voters have to be the ones to change them,” Hoyer said.
Legislation creating an entitlement commission was also introduced yesterday. The SAFE Commission would fast-track Social Security and tax reforms through just six town hall meetings before creating a report. Then within 60 days of this report, the commission would submit a legislative proposal that would be subject to an up-or-down vote within another 60 days.
Leaving seniors to ask not only, “Why now? but also “Why the rush?”
Topics: Social Security, entitlement reform | 2 Comments »
Reforming Health Care and Medicare
By NCPSSM | May 4, 2009
As part of our ongoing efforts to ensure Medicare is more than just the piggy-bank for system wide health care reform, we’ve run a full page ad in Politico today.
Seniors do have a stake in this historic health care debate and this marks just the beginning of our efforts to ensure seniors are engaged. Reinvesting at least some of the savings from Medicare reforms back into Medicare is vital for the millions of seniors current and future who depend on this program.
Topics: Medicare, Medicare Advantage, healthcare | 2 Comments »
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