Would a Government Shutdown Affect Social Security and Medicare?
First, the good news. Even if the government shuts down at the end of this week because of House Republican intransigence, Social Security benefits will continue to be paid and customer service for retirees should not get significantly worse – in the short term, anyway. Medicare benefits would not be affected, either — but beneficiaries would be unable to obtain replacement Medicare cards during a shutdown. (Social Security cards would still be available, but benefit verifications will not.)
Now, the bad news. The impending shutdown is symptomatic of a disorder in Congress that seniors should care about: MAGA hardliners once again gumming up the works of a government which best serves the public when operating smoothly, without needless disruptions. (See last spring’s default crisis, promulgated by the House GOP.) Many of these are the same House Republicans who have proposed to cut Social Security. The MAGA faction also wants to slash the already underfunded Social Security Administration’s (SSA) budget by 8%, which could have devastating effects on customer service.
Fortunately, Social Security benefits would continue to be paid during a shutdown because they are considered by law to be mandatory spending. (It should be noted that GOP Senator Ron Johnson proposed in 2022 that Social Security and Medicare no longer be considered mandatory.) Any Social Security Administration employees with a role in administering Social Security benefits are considered “essential personnel” and would not be furloughed during a shutdown. But these workers will not be paid until the shutdown is over. Some 8,500 of SSA’s 62,000 employees would be furloughed as “non-essential,” according to NCPSSM’s senior Social Security analyst, Maria Freese.
“Anything that slows the process down, and makes it more challenging, is something that everybody ought to worry about. This is an agency with over 60,000 employees — none of whom is going to get paid during a shutdown. Yes, the agency will continue to function. But it costs the government money as the agency falls further behind” – Maria Freese, NCPSSM senior Social Security analyst
While retirement benefits should remain largely unscathed, Social Security Disability Insurance (SSDI) determinations could be affected by a shutdown. Kathleen Romig of the Center on Budget and Policy Priorities told CBS News that state-level offices that determine eligibility for disability benefits may close, as they have in the past. “Because there are already huge backlogs in SSDI disability decisions, a government shutdown could worsen delays,” Romig said.
The House and Senate are running out of time to pass legislation (known as a “continuing resolution” or CR) to keep the government open past the end of the fiscal year on September 30th. “Sometime between now and the end of the week, the House would have to pass a CR, and there’s no agreement on how to do that,” said Freese. This is largely because MAGA House Republicans have demanded painful spending cuts (along with several spurious and unrelated demands). House Speaker Kevin McCarthy does not have the support within his own caucus to pass a CR, and he has so far been unwilling to work with Democrats to amass enough votes to avoid a shutdown.
Last week, we asked Maria Freese why some House Republicans seem perfectly willing to shut the government down for ideological reasons, regardless of the impact on everyday Americans. “I like to hope that they are simply unaware of the hardships that shutdowns cause to their own constituents, as some Republicans have said publicly that they don’t believe anyone would notice or care if the government closed,” said Freese. ” I believe this kind of cavalier attitude about our government demonstrates a lack of understanding and appreciation for the many services agencies like SSA provide to the average American senior.”
House GOP Spending Proposal Would Slash Social Security Administration Funding
House Republicans have agreed on a short-term measure to avert a government shutdown. They propose a continuing resolution (CR) that would run through the end of October. The proposed CR includes an overall cut in spending of 1% for those 31 days, but fully protects defense, veterans and disaster relief funding. That means an 8% spending cut from current funding for all other agencies, including the Social Security Administration (SSA). We spoke to NCPSSM senior legislative representative, Maria Freese, about what this means for the beleaguered SSA and the millions of claimants who rely on it.
Q: What would an 8% cut in the operating budget of SSA do to the SSA? What impact would that have on customer service?
A: Of course we don’t know exactly what the impact of any cut will be on SSA, but we do know they have already requested an increase of $727 million above current funding, as a minimum, for FY 2024. Without this level of funding, they will be forced to reduce staffing and overtime, which will hurt the agency’s ability to serve the public. Without that minimum level of funding, SSA’s customers will wait significantly longer for field office services, disability decisions, and phone support. A cut in funding will only make the problem worse, especially as the agency will have little time to plan for and implement such a drastic cut.
Q: If anything, SSA Needs a funding BOOST, doesn’t it?
A: Absolutely. We still have an average of 10,000 baby boomers reaching retirement age every day, which means demand for services from SSA continues to increase. When combined with the impact of inflation, it’s clear the agency needs more money to operate. Not only do they need to keep up with an increasing current demand, but decades of underfunding have left the agency with significant backlogs that they need to address. About 110,000 Americans have already died over the last decade waiting for disability determinations from SSA, a problem which will only get worse if the agency continues to be underfunded.
Q: How much of a funding increase would NCPSSM like to see SSA receive?
A: At a minimum, we support the Administration’s request of $15.5 billion for FY 2024, an amount which would help the agency keep up with current demand while continuing to reduce backlogs and update its technology. This is still a billion dollars below what the agency itself believes it needs to do its job adequately, but well above any of the funding levels being considered by Congress.
Q: Also, isn’t SSA supposed to be funded mainly through payroll taxes? So why slash it? Haven’t workers already paid for these services, in effect?
A: Yes, that is one of the truly frustrating things about SSA’s funding conundrum. SSA is fully funded by workers’ payroll taxes but unfortunately, (for accounting purposes) the agency is technically ‘on budget.’ This means that although SSA operations have already been paid for by American workers with every paycheck, the agency still must compete with every other government service for funding.
Q: What does it say about House Republicans’ priorities that they want to exempt military spending from cuts but are anxious to slash domestic spending like SSA operations in exchange for keeping the government open?
A: I like to hope that they are simply unaware of the hardships that shutdowns cause to their own constituents, as some Republicans have said publicly that they don’t believe anyone would notice or care if the government closed. I believe this kind of cavalier attitude about our government demonstrates a lack of understanding and appreciation for the many services agencies like SSA provide to the average American senior.
Q: NCPSSM has previously said that a shutdown, if it happens, would negatively impact SSA services. Is that still the case?
A: Yes, though the extent of the impact will partly depend on the length of the shutdown. Most SSA employees are exempt from the furloughs required during a government shutdown because the law requires that Social Security checks continue to be paid. Any employee essential to ensuring that those benefits are paid remains on the job. But agency employees are limited in the functions they can perform during a shutdown, so some services, such as the processing of disability claims, inevitably would be impacted.
It’s Time to Repeal WEP & GPO, Says NCPSSM & National Task Force
NCPSSM participated in an event on the Capitol Grounds Wednesday to call for the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which prevent millions of public employees and their families from collecting full Social Security benefits. The event was organized by the National WEP/GPO Repeal Task Force — a coalition of advocates representing public sector workers.
Congress created the GPO in 1977 to help ensure that spousal and widow(er) benefits of those with covered or non-covered lifetime earnings would be roughly equal. The Windfall Elimination Provision (WEP), enacted in 1983, reduces the Social Security benefits of workers who receive pensions from a federal, state, or local government for employment not covered by Social Security.
Advocates argue that these provisions – originally intended to make Social Security benefits fairer – actually penalize public sector employees like teachers, firefighters, police officers, and federal workers.
“In enacting the WEP and GPO, Congress created a completely different set of inequities, slashing Social Security benefits for some even though their payroll contributions might be exactly the same as their fellow Americans whose work history was entirely within the Social Security system,” said NCPSSM President Max Richtman at the Wednesday event.
The WEP and GPO, Richtman said, leaves millions of retirees and their families with little or no Social Security benefits, despite decades of contributions in payroll taxes.
NCPSSM has endorsed legislation favored by the National WEP/GPO Repeal Task Force, the Social Security Fairness Act:
The bill eliminates the government pension offset, which in various instances reduces Social Security benefits for spouses, widows, and widowers who also receive government pensions of their own.
The bill also eliminates the windfall elimination provision, which in some instances reduces Social Security benefits for individuals who also receive a pension or disability benefit from an employer that did not withhold Social Security taxes.
The National WEP/GPO Repeal Task Force is leading a grassroots movement to spur Congress to enact the Social Security Fairness Act. “This is a serious issue that’s gone on way too long,” said Suzie Dixon, President of the California Retired Teachers Association and vice-chair of the task force. “It is time to let teachers, firefighters, police officers and other public sector employees live their senior years in dignity.”
NCPSSM also strongly endorses Rep. John Larson’s Social Security 2100 Act, which would repeal the WEP & GPO in addition to strengthening the program’s finances and boosting retirees’ benefits.
NCPSSM To Participate in Harkin Social Security Symposium in DC
The National Committee to Preserve Social Security and Medicare will participate in a special Social Security symposium hosted by former U.S. Senator Tom Harkin and the Harkin Institute of Drake University. Featuring NCPSSM President Max Richtman and other prominent leaders from the national advocacy community, the summit will take place on September 13th (8:00am to 4:00pm) at the National Education Association headquarters in Washington, DC. The focus of the event is “preserving and enhancing Social Security for future generations.”
The Harkin Institute’s Director of Retirement Security, Rayna Stoycheva, says the symposium, Preserving and Enhancing Social Security for All, comes at a crucial time for Social Security. “In the last couple of years, there has been an uptick in legislative proposals focused on balancing the trust fund and enhancing the Social Security program,” says Stoycheva. “We thought that a symposium that focuses on the program in more detail was timely — and would serve our mission to connect citizens with the policy making process.”
For the National Committee to Preserve Social Security and Medicare, the exchange of ideas with other advocates is crucial to its mission. “Senator Harkin is the chair of our advisory board and a true champion of Social Security, so we are especially honored to have a role in this symposium,” says Richtman.
“We applaud the Harkin Institute for bringing together so many thought leaders in this field at a time when Social Security faces considerable financial and political challenges. Events like this are crucial to ensure that the program is protected and expanded rather than cut and privatized, as some in Washington have proposed.” – Max Richtman, NCPSSM President and CEO
The keynote speakers for the symposium are Stephen Goss, Chief Actuary at the Social Security Administration and Rep. John Larson (D-CT), author of the Social Security 2100 Act to protect and expand the program.
Social Security Chief Actuary Stephen Goss & Rep. John Larson are keynote speakers
Registration is now open for up to 200 attendees. The intended audience for the symposium is: policymakers, researchers, practitioners, and retirement security professionals. “Anyone dedicated to improving retirement security and reducing poverty and inequality will find value in this symposium,” says Stoycheva. “The event will lay out what options we can consider in the coming years to achieve the mission of preserving Social Security.”
Specifically, the symposium will shed light on some important questions, including:
How has the Social Security program evolved over the years?
What role does it play for retirement security in the current retirement system?
What are the distributional effects of different proposals?
What is the outlook for specific legislative action in the next 10 years?
NCPSSM President Richtman will lead a panel entitled, “Public Opinion on Social Security Reform and Legislative Agenda,” featuring several speakers including Nancy LeaMond, Executive Vice President and Chief Advocacy & Engagement Officer at AARP.
Other VIP panelists at the symposium include: William Arnone (NASI), Rich Fiesta (Alliance for Retirement Americans), Monique Morrissey (Economic Policy Institute), Kathleen Romig (CBPP), Teresa Ghilarducci (New School for Social Research), Jeff Cruz (AFGE), Rebecca Vallas (Century Foundation), and Nancy Altman (Social Security Works).
“This is an amazing group of policy leaders in this space!” says Stoycheva. “Putting together the program has truly been a collaborative effort involving many different people.” Stoycheva credits, in particular, Alicia Munnell of the Center for Retirement Research at Boston College and William Arnone (Executive Director at the National Academy of Social Insurance) for helping put the program together, with additional input from Richtman and Social Security Works president, Nancy Altman.
There still is time to register for the symposium at: https://harkininstitute.drake.edu/2023/07/19/2023-harkin-retirement-security-symposium/
“There are still some spaces left,” says Stoycheva. “We encourage anyone in this field with a stake in the future of Social Security to avail themselves of this opportunity.”
NCPSSM At White House for Release of First Ten Drugs for Medicare Price Negotiation
NCPSSM President Max Richtman and Policy Director Dan Adcock were at the White House Tuesday as the Biden administration released the names of the first ten drugs to be subject to price negotiation between Medicare and Big Pharma. They are some of the most common and most expensive prescription medications that seniors take. These essential medications do everything from preventing blood clots and strokes to treating diabetes, and they will soon cost a lot less for the federal government and for patients.
“This is a sea change in the government’s ability to lower prescription drug prices for older Americans, who all too often are compelled to ration medications or forgo filling prescriptions because of soaring costs.” – Max Richtman, NCPSSM President & CEO, 8/29/23
The Inflation Reduction Act of 2022 empowered Medicare to begin negotiating prices for targeted prescription drugs, something advocates including NCPSSM have struggled to achieve for more than twenty years. Here is a list of the first ten drugs that will be subject to price negotiation with Medicare:
- Eliquis, for preventing strokes and blood clots
- Jardiance, for diabetes and heart failure
- Xarelto,for preventing strokes and blood clots
- Januvia, for diabetes
- Farxiga, for diabetes, heart failure and chronic kidney disease
- Entresto, for heart failure
- Enbrel, for arthritis and other autoimmune conditions
- Imbruvica, for blood cancers
- Stelara, for Crohn’s disease
- Fiasp andNovoLog insulin products for diabetes
Drugmakers made a whopping $493 billion in revenue from these ten drugs, which have accounted for more than $170 billion in gross Medicare spending, according to a report from the nonprofit, Protect Our Care.
President Biden hailed the release of the first ten medications for negotiation as a victory for everyday Americans, who have been subject to price gouging by the drug industry. “There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets,” he said
According to the White House, the 9 million seniors who take the ten targeted drugs will see their costs decrease. These seniors currently pay up to $6,500 in out-of-pocket costs per year for these prescriptions. The nonpartisan Congressional Budget Office reports that this will save taxpayers $160 billion by reducing how much Medicare pays for drugs through negotiation and inflation rebates.
The seniors who have been victimized by price gouging and now will finally get some relief are front of mind for advocates, including Patients for Affordable Drugs Now. The group quotes a Medicare beneficiary in North Carolina who lives with a rare cancer and type 2 diabetes:
“To treat my diabetes, I take Januvia, which carries a monthly list price of $547. Drugmaker Merck has made a fortune from patients like me who are forced to pay whatever price the company dictates. A fairer price for Januvia will mean a world of difference.” – Steven Hadfield, Matthews, NC
The list of drugs subject to negotiation will expand next year to 15, followed by another 15 medications the year after. Negotiated prices for the first ten drugs do not go into effect until 2026.
NCPSSM’s senior health policy expert, Anne Montgomery, says the Biden administration (HHS & CMS) did a “savvy job” of selecting the first set of drugs for negotiation because they are “ten of the highest cost and most commonly used medications” among seniors. “That’s very smart,” she says, “as a way of building a constituency among beneficiaries for the movement to lower drug prices.”
Several drugmakers are suing the Biden administration, claiming that Medicare drug price negotiation is unconstitutional — despite the fact that the V.A. has been successfully negotiating drug prices with Big Pharma for years. Administration officials say that they believe the drug companies have a weak case and will not prevail.
Advocates like NCPSSM are not resting with the implementation of the Inflation Reduction Act’s drug provisions. “The next step is to enlarge the number and type of medications subject to negotiation, to deliver maximum relief to seniors on fixed incomes,” says Richtman. “No one should have to choose between groceries, rent, or essential medications — especially our nation’s senior citizens.”
Would a Government Shutdown Affect Social Security and Medicare?
First, the good news. Even if the government shuts down at the end of this week because of House Republican intransigence, Social Security benefits will continue to be paid and customer service for retirees should not get significantly worse – in the short term, anyway. Medicare benefits would not be affected, either — but beneficiaries would be unable to obtain replacement Medicare cards during a shutdown. (Social Security cards would still be available, but benefit verifications will not.)
Now, the bad news. The impending shutdown is symptomatic of a disorder in Congress that seniors should care about: MAGA hardliners once again gumming up the works of a government which best serves the public when operating smoothly, without needless disruptions. (See last spring’s default crisis, promulgated by the House GOP.) Many of these are the same House Republicans who have proposed to cut Social Security. The MAGA faction also wants to slash the already underfunded Social Security Administration’s (SSA) budget by 8%, which could have devastating effects on customer service.
Fortunately, Social Security benefits would continue to be paid during a shutdown because they are considered by law to be mandatory spending. (It should be noted that GOP Senator Ron Johnson proposed in 2022 that Social Security and Medicare no longer be considered mandatory.) Any Social Security Administration employees with a role in administering Social Security benefits are considered “essential personnel” and would not be furloughed during a shutdown. But these workers will not be paid until the shutdown is over. Some 8,500 of SSA’s 62,000 employees would be furloughed as “non-essential,” according to NCPSSM’s senior Social Security analyst, Maria Freese.
“Anything that slows the process down, and makes it more challenging, is something that everybody ought to worry about. This is an agency with over 60,000 employees — none of whom is going to get paid during a shutdown. Yes, the agency will continue to function. But it costs the government money as the agency falls further behind” – Maria Freese, NCPSSM senior Social Security analyst
While retirement benefits should remain largely unscathed, Social Security Disability Insurance (SSDI) determinations could be affected by a shutdown. Kathleen Romig of the Center on Budget and Policy Priorities told CBS News that state-level offices that determine eligibility for disability benefits may close, as they have in the past. “Because there are already huge backlogs in SSDI disability decisions, a government shutdown could worsen delays,” Romig said.
The House and Senate are running out of time to pass legislation (known as a “continuing resolution” or CR) to keep the government open past the end of the fiscal year on September 30th. “Sometime between now and the end of the week, the House would have to pass a CR, and there’s no agreement on how to do that,” said Freese. This is largely because MAGA House Republicans have demanded painful spending cuts (along with several spurious and unrelated demands). House Speaker Kevin McCarthy does not have the support within his own caucus to pass a CR, and he has so far been unwilling to work with Democrats to amass enough votes to avoid a shutdown.
Last week, we asked Maria Freese why some House Republicans seem perfectly willing to shut the government down for ideological reasons, regardless of the impact on everyday Americans. “I like to hope that they are simply unaware of the hardships that shutdowns cause to their own constituents, as some Republicans have said publicly that they don’t believe anyone would notice or care if the government closed,” said Freese. ” I believe this kind of cavalier attitude about our government demonstrates a lack of understanding and appreciation for the many services agencies like SSA provide to the average American senior.”
House GOP Spending Proposal Would Slash Social Security Administration Funding
House Republicans have agreed on a short-term measure to avert a government shutdown. They propose a continuing resolution (CR) that would run through the end of October. The proposed CR includes an overall cut in spending of 1% for those 31 days, but fully protects defense, veterans and disaster relief funding. That means an 8% spending cut from current funding for all other agencies, including the Social Security Administration (SSA). We spoke to NCPSSM senior legislative representative, Maria Freese, about what this means for the beleaguered SSA and the millions of claimants who rely on it.
Q: What would an 8% cut in the operating budget of SSA do to the SSA? What impact would that have on customer service?
A: Of course we don’t know exactly what the impact of any cut will be on SSA, but we do know they have already requested an increase of $727 million above current funding, as a minimum, for FY 2024. Without this level of funding, they will be forced to reduce staffing and overtime, which will hurt the agency’s ability to serve the public. Without that minimum level of funding, SSA’s customers will wait significantly longer for field office services, disability decisions, and phone support. A cut in funding will only make the problem worse, especially as the agency will have little time to plan for and implement such a drastic cut.
Q: If anything, SSA Needs a funding BOOST, doesn’t it?
A: Absolutely. We still have an average of 10,000 baby boomers reaching retirement age every day, which means demand for services from SSA continues to increase. When combined with the impact of inflation, it’s clear the agency needs more money to operate. Not only do they need to keep up with an increasing current demand, but decades of underfunding have left the agency with significant backlogs that they need to address. About 110,000 Americans have already died over the last decade waiting for disability determinations from SSA, a problem which will only get worse if the agency continues to be underfunded.
Q: How much of a funding increase would NCPSSM like to see SSA receive?
A: At a minimum, we support the Administration’s request of $15.5 billion for FY 2024, an amount which would help the agency keep up with current demand while continuing to reduce backlogs and update its technology. This is still a billion dollars below what the agency itself believes it needs to do its job adequately, but well above any of the funding levels being considered by Congress.
Q: Also, isn’t SSA supposed to be funded mainly through payroll taxes? So why slash it? Haven’t workers already paid for these services, in effect?
A: Yes, that is one of the truly frustrating things about SSA’s funding conundrum. SSA is fully funded by workers’ payroll taxes but unfortunately, (for accounting purposes) the agency is technically ‘on budget.’ This means that although SSA operations have already been paid for by American workers with every paycheck, the agency still must compete with every other government service for funding.
Q: What does it say about House Republicans’ priorities that they want to exempt military spending from cuts but are anxious to slash domestic spending like SSA operations in exchange for keeping the government open?
A: I like to hope that they are simply unaware of the hardships that shutdowns cause to their own constituents, as some Republicans have said publicly that they don’t believe anyone would notice or care if the government closed. I believe this kind of cavalier attitude about our government demonstrates a lack of understanding and appreciation for the many services agencies like SSA provide to the average American senior.
Q: NCPSSM has previously said that a shutdown, if it happens, would negatively impact SSA services. Is that still the case?
A: Yes, though the extent of the impact will partly depend on the length of the shutdown. Most SSA employees are exempt from the furloughs required during a government shutdown because the law requires that Social Security checks continue to be paid. Any employee essential to ensuring that those benefits are paid remains on the job. But agency employees are limited in the functions they can perform during a shutdown, so some services, such as the processing of disability claims, inevitably would be impacted.
It’s Time to Repeal WEP & GPO, Says NCPSSM & National Task Force
NCPSSM participated in an event on the Capitol Grounds Wednesday to call for the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which prevent millions of public employees and their families from collecting full Social Security benefits. The event was organized by the National WEP/GPO Repeal Task Force — a coalition of advocates representing public sector workers.
Congress created the GPO in 1977 to help ensure that spousal and widow(er) benefits of those with covered or non-covered lifetime earnings would be roughly equal. The Windfall Elimination Provision (WEP), enacted in 1983, reduces the Social Security benefits of workers who receive pensions from a federal, state, or local government for employment not covered by Social Security.
Advocates argue that these provisions – originally intended to make Social Security benefits fairer – actually penalize public sector employees like teachers, firefighters, police officers, and federal workers.
“In enacting the WEP and GPO, Congress created a completely different set of inequities, slashing Social Security benefits for some even though their payroll contributions might be exactly the same as their fellow Americans whose work history was entirely within the Social Security system,” said NCPSSM President Max Richtman at the Wednesday event.
The WEP and GPO, Richtman said, leaves millions of retirees and their families with little or no Social Security benefits, despite decades of contributions in payroll taxes.
NCPSSM has endorsed legislation favored by the National WEP/GPO Repeal Task Force, the Social Security Fairness Act:
The bill eliminates the government pension offset, which in various instances reduces Social Security benefits for spouses, widows, and widowers who also receive government pensions of their own.
The bill also eliminates the windfall elimination provision, which in some instances reduces Social Security benefits for individuals who also receive a pension or disability benefit from an employer that did not withhold Social Security taxes.
The National WEP/GPO Repeal Task Force is leading a grassroots movement to spur Congress to enact the Social Security Fairness Act. “This is a serious issue that’s gone on way too long,” said Suzie Dixon, President of the California Retired Teachers Association and vice-chair of the task force. “It is time to let teachers, firefighters, police officers and other public sector employees live their senior years in dignity.”
NCPSSM also strongly endorses Rep. John Larson’s Social Security 2100 Act, which would repeal the WEP & GPO in addition to strengthening the program’s finances and boosting retirees’ benefits.
NCPSSM To Participate in Harkin Social Security Symposium in DC
The National Committee to Preserve Social Security and Medicare will participate in a special Social Security symposium hosted by former U.S. Senator Tom Harkin and the Harkin Institute of Drake University. Featuring NCPSSM President Max Richtman and other prominent leaders from the national advocacy community, the summit will take place on September 13th (8:00am to 4:00pm) at the National Education Association headquarters in Washington, DC. The focus of the event is “preserving and enhancing Social Security for future generations.”
The Harkin Institute’s Director of Retirement Security, Rayna Stoycheva, says the symposium, Preserving and Enhancing Social Security for All, comes at a crucial time for Social Security. “In the last couple of years, there has been an uptick in legislative proposals focused on balancing the trust fund and enhancing the Social Security program,” says Stoycheva. “We thought that a symposium that focuses on the program in more detail was timely — and would serve our mission to connect citizens with the policy making process.”
For the National Committee to Preserve Social Security and Medicare, the exchange of ideas with other advocates is crucial to its mission. “Senator Harkin is the chair of our advisory board and a true champion of Social Security, so we are especially honored to have a role in this symposium,” says Richtman.
“We applaud the Harkin Institute for bringing together so many thought leaders in this field at a time when Social Security faces considerable financial and political challenges. Events like this are crucial to ensure that the program is protected and expanded rather than cut and privatized, as some in Washington have proposed.” – Max Richtman, NCPSSM President and CEO
The keynote speakers for the symposium are Stephen Goss, Chief Actuary at the Social Security Administration and Rep. John Larson (D-CT), author of the Social Security 2100 Act to protect and expand the program.
Social Security Chief Actuary Stephen Goss & Rep. John Larson are keynote speakers
Registration is now open for up to 200 attendees. The intended audience for the symposium is: policymakers, researchers, practitioners, and retirement security professionals. “Anyone dedicated to improving retirement security and reducing poverty and inequality will find value in this symposium,” says Stoycheva. “The event will lay out what options we can consider in the coming years to achieve the mission of preserving Social Security.”
Specifically, the symposium will shed light on some important questions, including:
How has the Social Security program evolved over the years?
What role does it play for retirement security in the current retirement system?
What are the distributional effects of different proposals?
What is the outlook for specific legislative action in the next 10 years?
NCPSSM President Richtman will lead a panel entitled, “Public Opinion on Social Security Reform and Legislative Agenda,” featuring several speakers including Nancy LeaMond, Executive Vice President and Chief Advocacy & Engagement Officer at AARP.
Other VIP panelists at the symposium include: William Arnone (NASI), Rich Fiesta (Alliance for Retirement Americans), Monique Morrissey (Economic Policy Institute), Kathleen Romig (CBPP), Teresa Ghilarducci (New School for Social Research), Jeff Cruz (AFGE), Rebecca Vallas (Century Foundation), and Nancy Altman (Social Security Works).
“This is an amazing group of policy leaders in this space!” says Stoycheva. “Putting together the program has truly been a collaborative effort involving many different people.” Stoycheva credits, in particular, Alicia Munnell of the Center for Retirement Research at Boston College and William Arnone (Executive Director at the National Academy of Social Insurance) for helping put the program together, with additional input from Richtman and Social Security Works president, Nancy Altman.
There still is time to register for the symposium at: https://harkininstitute.drake.edu/2023/07/19/2023-harkin-retirement-security-symposium/
“There are still some spaces left,” says Stoycheva. “We encourage anyone in this field with a stake in the future of Social Security to avail themselves of this opportunity.”
NCPSSM At White House for Release of First Ten Drugs for Medicare Price Negotiation
NCPSSM President Max Richtman and Policy Director Dan Adcock were at the White House Tuesday as the Biden administration released the names of the first ten drugs to be subject to price negotiation between Medicare and Big Pharma. They are some of the most common and most expensive prescription medications that seniors take. These essential medications do everything from preventing blood clots and strokes to treating diabetes, and they will soon cost a lot less for the federal government and for patients.
“This is a sea change in the government’s ability to lower prescription drug prices for older Americans, who all too often are compelled to ration medications or forgo filling prescriptions because of soaring costs.” – Max Richtman, NCPSSM President & CEO, 8/29/23
The Inflation Reduction Act of 2022 empowered Medicare to begin negotiating prices for targeted prescription drugs, something advocates including NCPSSM have struggled to achieve for more than twenty years. Here is a list of the first ten drugs that will be subject to price negotiation with Medicare:
- Eliquis, for preventing strokes and blood clots
- Jardiance, for diabetes and heart failure
- Xarelto,for preventing strokes and blood clots
- Januvia, for diabetes
- Farxiga, for diabetes, heart failure and chronic kidney disease
- Entresto, for heart failure
- Enbrel, for arthritis and other autoimmune conditions
- Imbruvica, for blood cancers
- Stelara, for Crohn’s disease
- Fiasp andNovoLog insulin products for diabetes
Drugmakers made a whopping $493 billion in revenue from these ten drugs, which have accounted for more than $170 billion in gross Medicare spending, according to a report from the nonprofit, Protect Our Care.
President Biden hailed the release of the first ten medications for negotiation as a victory for everyday Americans, who have been subject to price gouging by the drug industry. “There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets,” he said
According to the White House, the 9 million seniors who take the ten targeted drugs will see their costs decrease. These seniors currently pay up to $6,500 in out-of-pocket costs per year for these prescriptions. The nonpartisan Congressional Budget Office reports that this will save taxpayers $160 billion by reducing how much Medicare pays for drugs through negotiation and inflation rebates.
The seniors who have been victimized by price gouging and now will finally get some relief are front of mind for advocates, including Patients for Affordable Drugs Now. The group quotes a Medicare beneficiary in North Carolina who lives with a rare cancer and type 2 diabetes:
“To treat my diabetes, I take Januvia, which carries a monthly list price of $547. Drugmaker Merck has made a fortune from patients like me who are forced to pay whatever price the company dictates. A fairer price for Januvia will mean a world of difference.” – Steven Hadfield, Matthews, NC
The list of drugs subject to negotiation will expand next year to 15, followed by another 15 medications the year after. Negotiated prices for the first ten drugs do not go into effect until 2026.
NCPSSM’s senior health policy expert, Anne Montgomery, says the Biden administration (HHS & CMS) did a “savvy job” of selecting the first set of drugs for negotiation because they are “ten of the highest cost and most commonly used medications” among seniors. “That’s very smart,” she says, “as a way of building a constituency among beneficiaries for the movement to lower drug prices.”
Several drugmakers are suing the Biden administration, claiming that Medicare drug price negotiation is unconstitutional — despite the fact that the V.A. has been successfully negotiating drug prices with Big Pharma for years. Administration officials say that they believe the drug companies have a weak case and will not prevail.
Advocates like NCPSSM are not resting with the implementation of the Inflation Reduction Act’s drug provisions. “The next step is to enlarge the number and type of medications subject to negotiation, to deliver maximum relief to seniors on fixed incomes,” says Richtman. “No one should have to choose between groceries, rent, or essential medications — especially our nation’s senior citizens.”