Tag Archives for AARP Rhode Island

Social Security funds could be up for grabs

Published in Pawtucket Times on September 10, 2001

Don’t expect quick government action to provide prescription drug benefits to seniors or immediate meaningful Social Security or Medicare reforms soon.  With the backdrop of a $1.35 trillion Bush White House tax cut, a shrinking budget surplus combined with an ailing economy and dwindling consumer confidence, Congress may be forced to take from “Peter to pay Paul.”

But let me give you the political translation…According to a recent released Congression Budget Office (CBO) August 2001 report, the federal government will need to use $9 billion of the tax receipts used to buy bonds invested in the Social Security trust fund in the fiscal year that ends September 30 to made ends meet, increasing the likelihood that heated bipartisan bickering and congressional gridlock will occur when lawmakers being their efforts to pass next year’s 13 spending bills.

Don’t look for things to get better soon, says the nonpartisan CBO, because by 2003 it’s estimated that $18 billion in Social Security reserves will be needed to keep the government in operation.  By 2005, CBO notes that if current tax and spending policies are followed, and the economy performs as the agency estimates, on budget surpluses will emerge.

Senior groups have expressed concern about the federal government having the dip into the cash generated from Social Security payroll taxes, calling it a tragedy that will block passage of any meaningful prescription drug benefit proposals or Medicare and Social Security reforms.  “The loss of tax revenue due to the present’s tax cuts and the slowing economy will lead to new federal debt and $600 billion in additional interest payments over the next ten years,”  predicted Max Richtman, executive director of the Washington D.C. based National Committee to preserve Social Security and Medicare.

“It’s enough to pat for a generous prescription drug benefit under Medicare,” Richtman says.

“Now it looks like the federal government will have to pay bondholders instead of providing seniors with the help they need on prescription drugs, Richtman added, noting that it’s a case of misplaced priorities.

“The $600 billion (in additional interest payments) could fund a prescription drug program with co-payments and deductible at a level that is more affordable for all seniors,”  Richtman says.  Meanwhile, any funds not used could help pay for repair of glasses, refitting dentures and new batteries for hearing aids, all costs not covered by Medicare. 

Adds Ed Zesk, president of Aging 2000, a nonprofit consumer organization focused on improving health care for seniors, “Its is unfortunate that the Bush administration got caught up in tax cut rhetoric to the point where they are focused into a corner and gave a tax cut without accessing its impact on the future of Medicare and Social Security.  While Americans certainly appreciate a few bucks back from Uncle Sam it is a shame that a nation we are potentially mortgaging our future health care and Social Security for a short term tax rebate.

“Clearly the tax cut has made it virtually impossible to develop any kind of meaningful prescription drug proposal for Medicare,”  Zesk told All About Seniors.  “This is just one example of the long-term benefit being sacrificed for the short-term gains,” he says.

Kathleen S. Connell, executive director of AARP Rhode Island, states that  AARP also opposes a federal government raid on the Social Security funds to finance other government programs.  However, the nation’s largest senior advocacy group was pleased that earlier this year both Congress and President Bush had agreed to protect Social Security by using surplus funds in the program for only debt reduction.  “To use the surplus funds other than for debt reduction would undermine that consensus and signal a trend that we believe would not be good economic policy,” Connell said.

According to AARP research, the overall balances for the program funds would not be affected and full benefits could be paid up until 2038, Connell said.  “The key thing that needs to be understood as long as the surplus is used for debt reduction, it would reduce the obligation of future generations and free up money to help the economy.”

With Congress going back into session, lawmakers must now begin the task of passing 13 appropriation bills for the fiscal year beginning October 1.  With the CBO report raising the issue of spending the Social Security receipts, it is now time for Congress to quit finger-pointing and charging each other of raiding the  Social Security and Medicare program.

With the graying of America, Congress must be aside its political differences and work toward long-range bipartisan solutions to ensure the solvency of the Social Security and Medicare programs.  No longer should seniors accept quick political fixes from either political party.

AARP Rallies for Prescription Drug Benefit

Published in the Pawtucket Times on July 30, 2001

AARP gears up its grassroots advocacy machine to call for the expansion of Medicare at nationwide rallies, urging Congress to enact a prescription drug benefit in Medicare that is affordable, voluntary and available for all.

Using the 36th anniversary of the signing of Medicare as a backdrop, AARP Rhode Island has planned a rally today at 9:00 a.m. at the food court of the Warwick Mall to support the expansion of Medicare to cover the cost of prescription drugs. AARP officials expect hundreds of members and aging advocates at this gathering, hoping to raise the awareness of the Rhode Island congressional delegation about the importance of this policy issue.

“Advocacy and education” will be the goals of today’s event, stated AARP state Director Kathleen S. Connell. To raise the awareness of Medicare’s anniversary and the need for a prescription drug benefit, she stated that all seniors attending the rally will be give anniversary cake and coffee as well as prescription pill boxes with an informational brochure about the issue.

Connell notes that the Washington, D.C.-based advocacy group, which represents 34,000 million seniors, will use today’s Rhode Island rally to urge state lawmakers to act on adding a prescription drug package to Medicare. Costly drugs continue to hi seniors in the pocketbook, she says.

Later in the morning, AARP Rhode Island volunteers will present each of the state’s two senators and two congressman an anniversary cake with a missing piece, to symbolically represent the prescription drug benefit that is missing from the existing law, Connell said. “We will bring them a cake along with anniversary cards to remind them of Medicare’s anniversary and the high cost of prescription drugs.”

Opposing Medicare is considered to be political suicide by lawmakers, especially with the clout of senior voters. Everyone agrees that Medicare is an important federal program that helps 93 million seniors to stay healthy. Last year alone, more than 39 million Americans and their families relied on the nation’s largest health care program for their health care needs.

At present, there is no prescription drug benefit under Medicare because of a lack of political consensus as to how to pay for and implement the policy.

The final version of the Medicare Act was introduced by Rhode Island Congressman Aime J. Forand (D-RI). Connell told All About Seniors. According to Connell, during last year’s congressional elections every candidate had a favorable position on Medicare. “Here is Rhode Island Medicare’s promise has deeper roots in that our lawmakers were the prime movers of the original Medicare efforts. Our message to Rhode Island lawmakers is that we stated it here so let’s do what we need to complete it,” Connell added, noting that the final piece is a prescription drug package.

As with Congress, Rhode Island’s congressional delegation favors a prescription drug Medicare benefit and all are planning to attend today’s rally.

According to remarks that Sen. Jack Reed is expected to make, it is the right time for Congress to move on this issue. “Tremendous advancements in medical treatments, the explosive growth in the price of prescription drugs, and older Americans ever increasing reliance on medications, makes it essential that Congress enact a Medicare prescription drug benefit,” he says.

Taking his Congressional campaign pledge of making prescription drugs more affordable to older Rhode Islanders to Capito Hill, Rep. Jim Langevin also has penciled in the rally on his schedule. The state’s newest Congressman is expected to call for the passage of H.R. 1400, legislation that would drive down the cost of prescription drugs. The bill also provides protection to Medicare recipients from discriminatory pricing by drug companies. A study commissioned by the state’s congressman found that Rhode Island seniors pay on average, 78 percent more for most commonly used prescription drugs than those in five industrial countries.

Also, expect Rep. Patrick Kennedy to drop by the Warwick Mall to show his continued support for Medicare prescription drug coverage. He tells All About Seniors, “It is clear that we must bring Medicare into the 21st century with accessible and affordable insurance coverage of prescription drugs.” Over the years the Congressman has expressed concern not only for those who have no drug coverage at all but for those who pay high prices for private supplement policies or for managed care plans that include drug coverage.

Meanwhile, Republicans Sen. Lincoln Chafee will come to the rally to pitch S. 1135, a bipartisan, comprehensive bill, that would begin to overhaul Medicare and provide a universal prescription drug subsidy. The proposal also calls for different organizations to compete for Medicare’s prescription drug business. Sen. Chafee believes his approach of using a market-based competition will result in lower prices for prescriptions.

But the rising costs of prescription drugs will continue to make the prescription drug benefits a key advocacy issue for Rhode Island AARP and other senior advocacy groups at the national level. Congress must move away from legislative gridlock, away from the flowery words of support for a prescription drug package spoken at public events, to swiftly enact a viable bipartisan solution so this pressing public policy problem. Simply put, lawmakers must now realize that seniors at AARP rallies across the nation are telling you today to “walk your talk.”