News
-
Benefit Bulletin November 2015
Did Members of Congress receive a COLA this year? If so did they get more than the 3.6% that seniors received? Is it true they don't pay into Social Security? .TSCL strongly supports quick passage of the urgently needed legislation to stop the cuts. .Can Home Health Agencies Provide Rebates? … Continued
-
Loss Of Buying Power
Congressman Mulvaney also expressed his commitment to reforming the Social Security program during Tuesday's confirmation hearings. He recommended increasing the age of eligibility for Social Security benefits, and in the recent past, he has voted in favor of legislation that would reduce cost-of-living adjustments (COLAs) by adopting the "chained" COLA. According to TSCL's research, "chaining" the Social Security COLA would amount to an across-the-board benefit cut of around 8 percent. .Under current law, the Social Security COLA is determined by the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index surveys the spending patterns of younger working adults under the age of 62 and doesn't include the households of people who are retired. But older and disabled Social Security recipients allocate their budgets differently than younger working adults, spending a larger share of their income on medical and housing costs which, in many years, tend to rise faster than overall all inflation. .But while the temporary payroll tax cut won't affect Social Security's finances, it also won't change the need to put the Social Security system's finances on a sound footing for future generations. Over the last 30 years, proposals have been made to allow future workers to put some of their Social Security contributions into "personal" or "privatized" investment accounts – with the hope of getting more money back than they would get from Social Security as we know it today. … Continued
Proponents of cutting benefits argue that Social Security, as it is currently structured, is unstainable because there are fewer workers to support current retirees. Social Security is estimated to run short of funds in about 15 years. Without changes and soon, Social Security benefits would have to be reduced by about 22% to match the amount of revenues that the program receives. .Despite the new endorsement from the Freedom Caucus, leaders in the House do not yet have the votes needed to win passage. On Thursday evening, House Majority Leader Kevin McCarthy (CA-23) told reporters, "We've been making great progress, and when we have the votes we'll vote on it." .The FDA is particularly concerned that these deceptive and misleading products might cause Americans to delay or stop appropriate medical treatment, leading to serious and life-threatening harm. It's likely that the products do not do what they claim, and the ingredients in them could cause adverse effects and could interact with, and potentially interfere with, essential medications. .After being suspended since November 2, 2015, the debt cap was reinstated last week. "Although the Treasury secretary is using ‘extraordinary measures' to fund the budget for now, a failure to lift the debt limit in time would affect all Americans, including the timely payment of Social Security benefits," says TSCL Social Security and Medicare policy analyst, Mary Johnson. .The ongoing problem of extremely low COLAs, and double digit Part B premiums could be eliminated entirely if Congress were to focus instead on ensuring a higher net Social Security benefit. This could be done by enacting a one - time benefit boost or an emergency COLA. Either approach would satisfy the Social Security Act's hold harmless requirement that an individual's net benefit will not decrease from one year to the next as a result of an increase in the Part B premium, as specifically stated in section (§1839[f]). To prevent the triggering of hold harmless it would be very important that an emergency COLA payable in January 2021 is structured as an actual boost to the net benefits of Social Security recipients, rather than simply providing a flat emergency payment by check. .Last fall, as part of his deficit reduction plan, President Obama recommended charging a 30 percent surcharge on Part B premiums to new beneficiaries who purchase Medigap polices with "near first-dollar" coverage. But do Medigap supplements encourage the over use of services? According to the Kaiser Family Foundation, about 20% of Medicare beneficiaries have a Medigap policy and they paid an average of 8 per month for premiums in 2010 (premiums vary significantly). People purchase the policies specifically to protect against the considerable costs that Medicare does not cover, and to help keep budgets in retirement years more predictable. They have modest incomes, but don't qualify for Medicaid. About 66% have incomes below ,000 and nearly 31% have incomes below ,000. .Sources: "Feds Announce Biggest-Ever Medicare Fraud, Totaling 0 Million," Scott Cohn, CNBC, May 4, 201"Report: Suspect Billings At 2,600 Drugstores," Ricardo Alonso-Zaldivar, The Associated Press, May 13, 201"Obstacles To Collection Of Millions In Medicare Overpayments, Office of Inspector General, Department of Health and Human Services, May 2012. .The Centers for Medicare and Medicaid Services said the rule would be mandatory and will focus on 50 single source drugs and biologic drugs that comprise the largest majority of Medicare Part B drug spending. .TSCL will be working for legislation to ensure both hospitals and Medicare Part A weather COVID-19 and its aftermath to keep both strong and working for all who depend on Medicare!
