News

  • Medicare Premiums May Soar 22 Next Year

    In 2014 the Congressional Budget Office estimated that the average tax payment of Social Security households equaled 6.7 percent of benefit income — an amount that is estimated to grow to 9 percent of benefits by 203"That growth is likely to occur much more rapidly due to changes in the tax law, which uses a more slowly growing consumer price index to adjust the tax code," Johnson says. .The payraise goes into effect automatically unless denied by legislation, or adjusted by a provision of law that prevents Congress from receiving a percentage of pay increase that would be greater than any payraise received by the General Schedule to federal workers. When Congress passed legislation in December of 2010 that froze the pay of federal workers through December 31, 2012, they effectively froze their own pay as well. No similar provision of law, however, prevents Congress from receiving a bigger COLA than seniors. The adjustment for Congress is not determined like the COLA for seniors, which is based on changes in consumer prices. Instead the Congressional COLA is based on changes in private sector wages and salaries as measured by the Employment Cost Index. Members of Congress were originally scheduled to receive a pay adjustment in January 2010, of 2.1%, and in 2011 of 0.9% had legislation not prohibited it. .Since you were born in 1959, your full retirement age is 66 and 10 months. Starting benefits prior to your full retirement age will lower your monthly payments. If you were to retire at age 62 instead of age 66 and 10 months, a ,000 per month benefit would be permanently reduced to ,416— a reduction of about 29.17%. The longer you delay starting your benefit, the more you will receive. But age 66 and 10 months is NOT your maximum benefit age. Your maximum benefit comes at age 70, no matter when you were born. … Continued

  • Tag Rising Costs

    Genetic testing is not routinely used by doctors to screen for cancer. Here's how the scam works— The "target" (that's anyone close to age 65 and up) might receive automated phone calls, often multiple times a week, or may be approached in-person by a "recruiter." The recruiter, who may present herself as a "certified Medicare counselor," convinces the target to take a genetic test promising that Medicare pays the full cost. The patient, however, often never receives a report, or the report may be incomprehensible. ."We should not allow health insurers to limit how much cost-sharing assistance can help patients at the pharmacy counter," the spokesperson said. .First, one new cosponsor, Representative Dean Phillips (MN-3), signed on to Congressman Larson's Social Security 2100 Act (H.R. 860), bringing the total up to 20If adopted, this critical bill would strengthen and reform the Social Security program responsibly, without enacting benefit cuts for current or future retirees. It would also cut taxes for millions of seniors and create a new Special Minimum Benefit set at 125 percent of the poverty line. … Continued

Under the cuts, House members have seen 948 fewer salaried positions in their offices. The 2012 budget calls for an additional 6.4 percent reduction and more cuts to Congressional staffs and office supplies. .Long-term solvency of the Social Security program is essential. In 2010, due largely to the economic downturn and a stagnant recovery, the Social Security Trustees estimated that the trust funds ran a cash deficit of billion and had to begin redeeming the U.S. government bonds held in the trust funds. Although the Social Security Trustees predict the trust funds will remain solvent, and that benefits can be paid in full until 2037, that assumes an unprecedented level of transfers from the general revenues. Leading economists, in the U.S. and worldwide, have said that the level of debt this would require risks undermining the stability of our economy. .A major study by two economists at the Social Security Administration found that the growth is mainly due to Baby Boomers moving into disability-prone ages, growth in the number of women covered for disability benefits, and ordinary population growth. But the researchers were unable to account for 10 percent of the growth that they attributed to what they dubbed the disability "incidence rate" — meaning the growth not attributable to something else. Some members of Congress and the public are beginning to question whether overly vague eligibility criteria, and too many applicants receiving benefits that they aren't entitled to, might be to blame. .This doesn't mean you should completely rule out starting widow's benefits. Depending on your finances, you may be able to start a reduced widow's benefit now and later switch to your own retirement benefits after your reach full retirement age or later if it would be higher than what you are entitled to now. If your own retirement would not be higher, then starting survivor's benefits now would lock in a permanently lower benefit. .TSCL strongly supports legislation that would correct how COLAs are calculated to more accurately represent what seniors and the disabled must spend on their out-of-pocket healthcare costs. We strongly encourage you to contact your Members of Congress and attend local town halls during the upcoming campaign season. Help us make the case why a fair and adequate COLA is a necessity to protect Social Security benefits from losing buying power as costs rise. .Congressional inaction on the debt ceiling is a growing concern of TSCL's for several reasons. If a default on the federal debt occurs, Social Security benefits would likely be delayed, and millions of seniors living on fixed incomes would suffer financially. In addition, doctors who treat Medicare patients would likely see postponements in their reimbursements from the federal government, and access to quality medical care would be jeopardized for beneficiaries. .However, one week ago a federal judge in California issued a ruling stopping the implementation of the rule because of the "government's failure to complete the notice and comment procedures required by the Administrative Procedure Act." .TSCL's research has consistently found that Medicare Part B premiums rank as one of the fastest growing senior costs. Yet Medicare premium costs are not included in the measure currently used to determine the annual COLA — one major reason why COLAs do such a poor job of keeping up with rising healthcare costs. TSCL continues to lobby for a more fair and accurate COLA and supports legislation that would use a seniors' index — like the Consumer Price Index for the Elderly (CPI-E) — to determine the annual boost. .Sources: Earnings Suspense File Data For 2008 and 2009, Social Security Administration, March 2, 201"The Growing Cost Of Illegal Immigration To Social Security," Mary Johnson, TSCL, June 2010.