THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ Celebrating 25 Years of Advocacy for Older Americans ~

January 28, 2008

NEWS RELEASE

The State of the Union for America’s Seniors is Anything But Strong

State of the Union Reaction by: Barbara B. Kennelly, President/CEO The National Committee to Preserve Social Security and Medicare

"For seven years this Administration has either attacked or neglected the programs that benefit older adults. Tonight's State of the Union address confirms that there will be no aging epiphany in the remainder of President Bush's last year in office.

The President talked about the economy tonight but for seniors there was much left unsaid. Here are just a few facts the President did not include in his State of the Union address:

Seniors Deserve Stimulus Help: While the President touts the need for a timely, targeted and temporary stimulus package, he doesn't mention that the nation's largest growing demographic, seniors, was virtually ignored in the initial stimulus proposal. That's in spite of the fact that senior households currently spend 92% of their income each year. Many retirees live check to check and would immediately spend any rebate they receive. They should be included in any plan to pump billions of dollars into the economy as quickly as possible yet the White House has called efforts to include seniors living on their Social Security checks 'political gamesmanship'.

America isn't facing an 'entitlement' crises it's facing budget and healthcare crises : Continuing to lump together the unique challenges facing Social Security, Medicare and Medicaid under the umbrella of 'entitlement reform' is a political strategy designed to persuade the American people to privatize these popular programs or accept massive benefit cuts rather than address seven years of borrow and spend policies which have left us with budget deficits and record debt. Tonight the President turned the issue over to Congress. Hopefully others will find reasonable solutions for these programs vital to American seniors.

Big Medicare Cuts Are Coming for Seniors But Insurer Subsidies Are Being Protected : The President also didn't talk tonight about the mandatory, arbitrary, and draconian cuts scheduled to hit millions of seniors who depend on the Medicare program.  Thanks to a little known provision in the 2003 Medicare privatization law, the federal budget this year will include cuts to limit government spending in Medicare to an arbitrary 45% threshold.  Incredibly, at the same time seniors will face these massive benefit cuts, private insurers will collect billions in Medicare subsidies paid for with taxpayer dollars.  Rather than work to reign in the costs of healthcare nationwide, or strengthen programs keeping millions from poverty, seniors will face losing benefits while at the same time private insurers in Medicare will collect billions in subsidies and record profits.

Retirees who live on fixed incomes are feeling the pinch of rising costs, threatened benefits and a shaky economy.  That is the State of the Union for American seniors. Unfortunately, nothing President Bush said tonight will help them sleep any easier.”