Social Security Advocates Warn Against Cuts

In a briefing held Friday by the National Academy of Social Insurance (NASI), Social Security advocates said cuttning seniors’ benefits to pay down the nation’s deficit would be highly destructive for current Social Security recipients and future beneficiaries.

Recently, lawmakers have suggested reforming America’s Social Security plan out of concern that it will run out of money by 2036.

Wilhelmina Leigh, Senior Research Associate at the Joint Center for Political and Economic Studies, pointed to the deficit reduction plan co-authored last year by Erskine Bowles and Alan Simpson.

Under the proposal, the full-benefit retirement age would be increased beyond 67, the cost-of-living adjustment would be lowered for current and future beneficiaries and the formula for calculating benefits would be heavily altered.

Leigh said the proposal “will close the shortfall by cutting benefits.”

NASI officials argued that the Bowles-Simpson plan would reduce benefits for 92 percent of seniors by 2070.

To help portray the effect of such a proposal on future retirees, participants of the briefing presented micro-simulation models developed by the Social Security Administration that depict how the plan would impose large cuts by 2070 for one in three women and one in two men, one in four black and Hispanic seniors, half of all white seniors and 45 percent of all middle-income seniors.

“Cutting from these modest, average levels for any group could make it very difficult for people to continue to exist,” Leigh said.

Additionally, the Bowles-Simpson plan would raise revenues by gradually lifting the cap on earnings taxed for Social Security.

“The question for all of us is how to craft a Social Security program for the future that is both well-financed and provides adequate retirement security for the children and grandchildren of today’s retirees,” said NASI President Janice Gregory.

In related news, a new survery released Thursday shows that a majority of younger Americans do not believe that government-run Social Security will be around for them when they reach retirement.

According to the poll, conducted by the group, Generation Opportunity, 66 percent of adults ages 18-29 indicated that they believe their Social Security money is safer under their pillows than in the US Treasury.

“Young people…are simply looking for competent leadership that respects their interests and places a higher value on unleashing America’s economic engine to more create jobs and economic opportunity,” said Paul T. Conway, President of Generation Opportunity and a former Chief of Staff for the United States Department of Labor.

Drug Companies To Cut Drug Costs For Seniors, Aid Obama’s Health Care Reform Plan

President Barack Obama announced an agreement between the administration and pharmaceutical companies Monday to lower the cost of medication for Medicare recipients.

The agreement seeks to eliminate the so-called “doughnut hole”, in which Medicare only covers prescription drug costs up to $2,700 annually and again when drug costs exceed $6,154 a year, but not the costs landing between the two benchmarks.

Through the agreement, pharmaceutical companies will provide $80 billion to lower the costs of medication for Medicare recipients over the next ten years.

“Drug and insurance companies stand to benefit when tens of millions more Americans have coverage. So we’re asking them, in exchange, to make essential concessions to reform the system and help reform costs,” said Obama. “It’s only fair.”

Medicare putting seniors at risk; leaving them vulnerable/

This morning there was a full committee hearing on Medicare improvements titled "Seniors at Risk: Improving Medicare for Our Most Vulnerable," focusing on Medicare Part D's Low Income Subsidy. Ranking Member Senator Gordon Smith (R-OR) and others were on hand to hear testimony.

After a brief introduction of the Medicare program and part D's low income subsidy, testimony was heard from multiple people including representatives from the AARP, Georgetown University Health Policy Institute, and SHIBA, The Senior Health Insurance Benefits Assistance.

Perhaps the most interesting testimony came from Judy Korynasz, a beneficiary witness and caregiver for her mother whom does not qualify for low income subsidy due to personal assets. Mrs. Korynasz has medicare along with her husband, in addition to her mother Charlotte Wachdorf, as noted above. Mrs. Wachdorf has chronic obstructive pulmonary disease, diabetes, congestive heart failure, chronic anemia, and many other illnesses. She has to take many medications, use a walker, and is restricted to using oxygen. Unfortunately, paying for this health care uses a significant amount of her money, even with the help of Medicare. Due to the confusing wording of the program, some seniors are being confused as to which program is the best for them. In the meantime, seniors are paying outrageous costs for health care, which is a clear indication that the program needs to strengthen. Though the program has helped some, it could help more.