"We support President Biden's plan to strengthen Medicare's finances, as laid out in his FY 2024 and 2025 budgets," says Richtman, noting that the president's plan would bring more revenue into the program, rather than cutting benefits as some Republicans have proposed. "Building on the prescription drug pricing reforms in the Inflation Reduction Act, the President's budget proposal would lower Medicare's costs -- and some of those savings would be used to extend the solvency of the Part A trust fund," he says.
According to Richtman, beyond trust fund solvency, the Trustees reported that the standard Medicare Part B premium will rise next year to $185 per month - a $20 or 6 percent monthly increase. "Any premium increase is a burden to seniors living on fixed incomes, who too often must choose between paying monthly bills or filling prescriptions and getting proper health care. Seniors need relief from rising premiums and skyrocketing out-of-pocket health-care costs. Fortunately, the Biden administration is taking steps to reduce those costs," said Richtman.
Key GOP Chair Responds to Trustee Reports
Chairman Jodey Arrington (R-TX), of the House Budget Committee, quickly released a statement, responding to the release of the 2024 Social Security and Medicare Trustees report.
According to Arrington, the House Budget Committee's Fiscal Year (FY) 2025 Budget, while not making any changes to Social Security or Medicare benefits, provides a way to prod Congress and the President to address the fiscal insolvency of these programs. The Budget Committee has also reported the Fiscal Commission Act, which will also give Congress the tools it needs to save and strengthen these vital programs," he noted.
"We have the highest levels of indebtedness in our nation's history, an inflationary and anemic economy, and the two most important senior safety net programs facing insolvency, says Arrington, noting that this year's trustees report "only reiterates why we need a bipartisan Fiscal Commission to address the Social Security and Medicare Trust Funds and the $140 trillion unfunded liability on America's balance sheet.
"Republicans and Democrats have both proven they will not fix Social Security and Medicare on their own. We must put our seniors and country first and work together to find a solution," he charges. "Doing nothing is condemning our seniors to automatic benefit cuts and our country to a future debt crisis," he says.
Fixing Social Security... A Difference in Perspective.
Both NCPSSM and Social Security Works strongly endorse financially shoring up Social Security by bringing in more money into the trust fund by increasing the payroll wage-cap to require higher-income beneficiaries to pay a higher Social Security payroll tax. Both Social Security advocacy groups endorse Rep. John Larson's (D-CT) Social Security 2100 Act, a legislative proposal would maintain the current payroll wage cap (currently set at $168,600), but subjecting wages $400,000 and above to payroll taxes, as well -- and dedicating some of high-earners' investment income to Social Security.
On the other hand, Republican lawmakers call for cutting earned benefits of younger workers by raising the full-retirement age, means-testing, and replacing the exiting COLA (CPI-W with the Chained CPI-U) that would result in a lower COLA over time. Also, no COLAs would be provided to high income earners.
Social Security is considered the third rail a nation's politics. Political pundits say that contact with the rail is like touching this high-voltage rail that can result in "political suicide". That is why the GOP-controlled House Budget Committee has proposed to create a fiscal commission to give lawmakers political cover to enact the cuts without having to vote on the record.
Over two months ago, the most recent budget hammered out by the Republican Study Committee, endorsed by 80 percent of the House Republicans, calls for over $1.5 trillion in cuts to Social Security in just the next ten years., including an increase in the retirement age to 69 and cutting disability benefits Medicare costs for seniors by taking away Medicare's authority to negotiate drug costs, repealing a $ 35 insulin, and $ 2,000 out-of-pocket cap in the Inflation Reduction Act.
Additionally, the House GOP budget transitions Medicare to a premium support system that the Congressional Budget Office has found would raises premiums for many seniors. Finally, it calls for cuts in Medicaid, the Affordable Care Act, and the Children's Health Insurance Program by $ 4.5 trillion over ten years, taking health-care coverage away from millions of people.
While President Donald Trump, the GOP's presidential candidate, has previously said he wouldn't make cuts to Social Security, recent interviews reveal a change. According to a March 11, 2024 web posting by CNN's Kate Sullivan and Tami Luhby, former President Donald Trump, the Republican candidate for president, "suggested [in a CNBC interview] he was open to making cuts to Social Security and Medicare after opposing touching the entitlement programs and attacking his GOP presidential primary rivals over the issue."
At the Polls
Legislative proposals to fix the ailing Social Security and Medicare programs are different as night and day. Rather than to continue to debate the fine points, let's put the differing policies on the ballot. With just 177 days left before the upcoming November presidential election, Congress must vote on Democratic and Republican legislative proposals, detailing differing provisions as to how these programs can increase the financial stability of these programs. Larson has already thrown his legislative proposal into the hopper, but it won't see the light of day with a GOP-controlled House.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
