News

  • Legislative Update For The Week Ending July 8 2011

    Part B premiums are only part of what Medicare recipients pay. People also have premiums for a Medigap supplement and Part D plan, or a Medicare Advantage plan and those premiums are rising as well. Hold harmless protection does not apply to premium increases in these private plans, and any increase would leave retirees .This week, TSCL endorsed two new bills from Congressman Lloyd Doggett (TX-35) – the Transparent Drug Pricing Act (H.R. 4116) and the Competitive DRUGS Act (H.R. 4117). If signed into law, the bills would promote transparency in the prescription drug industry and prevent anti-competitive pay-for-delay deals, in which brand-name drug companies pay generic drug makers millions of dollars to delay the introduction of their generic medicines to the market. .The letter that TSCL delivered to congressional leaders this week urged lawmakers to begin immediate discussions about lifting the debt limit and preventing a default on the federal debt. Art Cooper – Chairman of TSCL's Board of Trustees – wrote: "Our supporters nation-wide hope you will act swiftly and responsibly to avert delays in Social Security benefits and payments to Medicare providers, and they will not tolerate additional cuts to their earned Social Security benefits." … Continued

  • Half Of Retirees Report Paying Tax On Social Security Benefits For 2019

    The message here isn't "work till you drop." Working even a few additional years can boost retirement security substantially when you finally do retire. There's a "triple whammy" effect -- delayed Social Security filings means higher monthly benefits; you have more years of contributions to retirement accounts; and you have fewer net years of drawing down those accounts. Working with financial planning experts, we estimated that these factors can boost income in retirement by one-third or more. ."This is a major reason why Social Security checks don't keep up with rising Medicare costs," explains Johnson. "In fact, Social Security benefits have lost 34 percent of buying power since 2000," Johnson adds. .TSCL is hopeful that the bill will fail to win passage in the House since it would negatively impact older Americans if adopted. The AHCA would restructure the Medicaid program, which helps fund health care for 11 million – or around 1 in 5 – Medicare beneficiaries. It would also base premium subsidies on age instead of income, and allow private health insurers to charge older Americans more than they charge younger folks for their coverage. In addition, it would deplete Medicare's Hospital Insurance Trust Fund by eliminating a key revenue source, and the program would face an immediate funding crisis. … Continued

Fortunately, H.R. 3 is not the only legislation in either house of Congress that could lower drug prices and accomplish the other things necessary to fix Medicare and Social Security. .Recently we learned of a woman, now in her 80's, who has moved twice in the past decade to be close to her daughter. Her first move was from the family home in Connecticut to an up-scale retirement community in Virginia, and more recently following her daughter to Arizona after her son-in-law's job changed. Her former Virginia home has been sitting on the market for months. That's posing a drain on her resources, adding unanticipated costs for new housing at a time when her need for caregiving services is growing. Her daughter worried that the former facility wasn't handling things well. .Instead of using the CPI-W or the "chained" CPI, TSCL has been advocating for an inflation index that we believe would actually result in a more accurate Social Security COLA. We favor the CPI for Elderly Consumers (CPI-E), which the BLS has been tracking &ndah; but not utilizing – for decades. This index has shown that the spending inflation for seniors averages about two-tenths of a percentage point higher than the rate at which the CPI-W increases. We estimate that a senior who retired with average Social Security benefits in 1984 would have received ,496 more through 2013 had the CPI-E been used. .When the pandemic hit early last year, seniors became more susceptible than ever to scams, because of the increased digitization of our daily lives. Newly-available resources are now being used as bait, and already existing scam techniques have unfortunately adapted to fit the pandemic narrative. .If you receive a call from a person claiming to be from SSA, and that person asks you to provide your Social Security number or other information don't give it out over the phone. Contact your local SSA and report the call – it's likely to be a scam. .In the past, supplemental benefits offered by MA plans were only required to be primarily health related and typically included dental, hearing or vision benefits. Starting in 2019, new supplemental benefits must be medically appropriate and recommended by a licensed provider as part of a care plan, and not offered simply to induce enrollment. Examples of the new supplemental benefits include adult day care services, in-home support services, home and bathroom safety devices, transportation, and home-based palliative care. However, to qualify for these benefits, you must be diagnosed with a condition for which these benefits are necessary, and the benefits must be listed by your physician as part of your plan of care. .The trillion Senate Republican stimulus proposal comes with a measure that could curb federal spending in the future by reducing costs tied to Social Security, Medicare, and highway trust funds. .Finally, one new cosponsor – Rep. Ted Yoho (FL-3) – signed on to the Social Security Fairness Act (H.R. 1795), bringing the total up to one hundred and seventeen. If signed into law, the bill would repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) – two federal provisions that unfairly reduce the earned Social Security benefits of millions of state and local government employees each year. .Editor's note: While I have a pretty reliable track record on estimating the COLA, this year's inflation is far different than at any previous time in the past 26+ years. Inflation has been so volatile that I worry my probability models may not work as well as they typically do. In most years I'm pretty certain about my September estimate of the COLA for the following year. But this time all bets are off. Be patient — I'm no psychic, and stay tuned to the news!