House Bill to Expand, Strengthen Social Security

Published in Woosocket Call on February 3, 2019

With the 116th Congress kicking off on January 3, 2019 and the Democrats seizing control of the House, it did not take long for a bill to emerge that would strengthen and expand the nation’s Social Security program. Seven years ago, when U.S. Congressman John Larson (D-CT) first introduced the Social Security 2100 Act during the 113th Congress, the GOP controlled Congress blocked a fair hearing and vote. Now, with a Democratic majority in the House Larson’s Social Security proposal will finally get a thorough review as Democrats take control of the House Ways and Means, Energy and Commerce, and Education and Labor. These committees have oversight of Social Security.

Larson chose to throw the bill into legislative hopper on the 137th anniversary of President Franklin D. Roosevelt’s birth, who signed Social Security into law in 1935.

On January 30, 2019, Larson, recently appointed to chair of the House Ways and Means subcommittee on Social Security, introduced H.R.860, the Social Security Act 2100 Act, with over 202 House Democrats cosponsors (including Rhode Island Representatives David N. Cicilline and James R. Langevin), to ensure the retirement security of working Americans for another century.

Passage of the Social Security 2100 Act only requires a simple majority vote of 218 lawmakers. With 235 Democratic lawmakers sitting in this chamber, it is expected to pass. But, with the Senate-controlled by Republican Majority Leader Mitch McConnell of Kentucky and his GOP caucus, it will be difficult for Senators Chris Van Hollen (D-MD) and Richard Blumenthal (D-CT) to see their companion measure make it to the Senate floor for a vote.

H.R. 860’s eight provisions expand benefits for 62 million Social Security beneficiaries. It would provide an across-the-board benefit increase for current and new beneficiaries that is the equivalent of 2 percent of the average benefit. It also calls for an improved cost-of-living adjustment (COLA), through adopting a CPI-E formula, that takes into account the true costs (include health care expenses) incurred by seniors and a stronger minimum benefit set at 25 percent above the poverty line, tied to their wage levels to ensure that the minimum benefit does not fall behind. Finally, the bill would ensure that any increase in benefits from the bill do not result in a reduction in SSI benefits or loss of eligibility for Medicaid or Children’s Health Insurance Program. Finally, 12 million Social Security recipients will receive a tax cut through the eliminating the tax on their benefits.

Increasing the Financial Solvency of Social Security

According to an independent analysis of the Social Security’s Office of the Chief Actuary, H.R. 860 proposal would also strengthen and protect the Trust Funds by 75 years.

H.R. 860 would have wealthy individuals pay the same rate as everyone else. Presently, payroll taxes are not collected on wages over $132,900.
Larson’s legislation would apply the payroll tax to wages of $400,000, affecting the top 0.4% of wage earners. The bill gradually phases in an increase in the pay roll contribution rate beginning in 2020, of 50 cents per week, so that by 2043 workers and employers would pay 7.4 percent instead of 6.2 percent. Finally, the bill’s provisions would combine the Old-Age and Survivors, called Social Security, and the Disability Insurance trust funds into one Social Security Trust Fund, to ensure that all benefits will be paid.

“Social Security is a promise that after a lifetime of hard work, you should be able to retire with dignity and economic security. It’s critical that Congress preserve and strengthen this promise for years to come,” said Cicilline, who serves as Chair of the Democratic Policy and Communications Committee, representing Rhode Island’s 1st congressional district.

Larson, recently appointed chair of the House Ways and Means Subcommittee on Social Security, noted, “With 10,000 baby boomers becoming eligible for Social Security every day, the time to act is now. The Social Security 2100 Act will provide economic security not just for today’s seniors but for future generations too,” said Larson, as the bill was thrown into the legislative hopper.”

There have not been any significant adjustments to Social Security since 1983, when Tip O’Neill was Speaker and Ronald Reagan was President, said Larson. “It’s time for Congress and the President to come together again, just like Speaker O’Neill and President Reagan did to make this a reality, he said.

“For years, fiscal hawks have told us that the only way to ‘save’ Social Security is to cut benefits for future retirees. Congressman Larson’s bill is a resounding rebuke to those claims. The Social Security Act 2100 keeps the program financially sound for most of this century while boosting benefits for millions of beneficiaries,” said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare.

Richtman says, “Congressman Larson has promised that, for the first time, this legislation will receive thorough consideration in the U.S. House, including hearings with testimony from experts and the public. We applaud him for his vision, persistence, and advocacy on behalf of America’s current and future retirees in moving this bill forward.”

Today, more than 222,000 Rhode Islanders receive Social Security benefits today. It is the most important retirement income for 4 out of 5 seniors and provides financial protections to disabled workers and families who have lost a breadwinner.

For decades, GOP lawmakers pushed its Social Security reforms by privatization, raising the retirement eligibility age and imposing stingier COLA formulas. But, national poll after poll, across party lines and age groups, revealed the public’s strong support for the nation’s retirement program.

Washington Insiders expect Larson’s Social Security bill to pass the House. While GOP Senate leadership keeps the companion measure at arms-length, the upcoming 2020 elections may well grease the legislative wheels for passage. Over 20 Republican Senate, whose seats are at serious risk, may well vote for passage with Democratic Senators.
Stay tuned…

Scully Selected to Head Federal Health care Agency

Published in the Pawtucket times on May 14, 2001

Thomas A. Scully, a Washington, D.C.-based health care association executive who holds a law degree from Catholic University and has previous experience on Capitol Hill as a senate staffer and as a high-level White House official, has been tapped by the new Bush administration to run the Health Care financing Administration (HCFA), the federal agency providing health care to 74 million Medicare, Medicaid and the State Children’s Health Insurance Program.

The nomination of Scully, president and CEO of the Federation of American Hospitals, a trade group that represents 1,700 for-profit hospitals, went to Capitol Hill in early May.  When confirmed as HCFA administrator by the U.S. Senate, Scully will replace Nancy Min DeParle, who left last October for a teaching stint at Harvard University. With her departure, a string of acting directors temporarily took the reins of the federal agency.

At press time, Jill Kozney, a spokesperson for Chairman Chuck Grassley of the Senate Finance Committee, stated that a confirmation hearing has not been scheduled yet. “Not every piece of paper work is in, but the chairman would like to act on the nomination as soon as possible,” the Senate staffer says.

A Washington Insider

As Washington insider, Scully brings a potpourri of health policy experiences to HCFA. The health care association executive comes with legal expertise gleaned from his legal practice, which focused on regulatory and legislative work in health care. Scully also brings an understanding of the intricacies of Capitol Hill, gained by serving as a staff assistant to U.S. Senator Slade Gorton (R-Wash.), and as associate director of the White House Office of Management and Budget (OMB) and later as deputy assistant to the president and counselor to the director of OMB under the senior Bush administration.

Ties to the former Bush administration were forged when Scully served on the communications staff of the Bush-Quayle campaign in 1988 and as deputy director of the congressional affairs for the president-elect’s transition team.

“Scully is smart, quotable, and politically savvy,” says Edward Howard, executive vice president of the Alliance for Health Care Reform. “He’s described as a problem solver rather than an ideologue,” Howard adds.

Howard expects Scully to turn his attention to internal problems at HCFA, because the agency has “substantial management problems.” He notes that HCFA has lost a number of good people and Congress will most certainly give the agency new tasks to handle.

“At least Scully will not have to spend one and a half years to learn about the programs he supervises, because he knows them well with his past OMB experience and at the Federation of American Hospitals,” Howard adds.

Bill Benson, former deputy assistant secretary for aging and president of the Maryland-based Benson Consulting Group, warns “Don’t look for Scully to, be much of a consumer advocate,” because he will be sympathetic to providers because of his ties to the hospital provider community.

“That does not mean Scully’s going to be in any position to get hospitals any more money but he will be more attuned to less regulation and more flexibility in rules, and regulations or health care providers,” Benson states.

According to Benson, one of Scully’s first tasks will be to carry out Health ad Human Service Secretary Tommy Thomson’s wish to reorganize HCFA because “this agency is one that everyone loves to hate, especially Republicans.”

Providers Rally Around Scully

Meanwhile, provider groups give thumbs up to Scully’s nomination as HCFA administration.

“Tom Scully has a unique combination of both real-world perspective and public service experience,” states Rick Pollack, executive vice president of the American Hospital Association. “That makes him a great choice for HCFA administrator.”

“From crafting Medicare regulation and budgets to building strong relationships with lawmakers on both sides of the aisle, Tom has the right mix of knowledge or the job,” Pollack adds.

In a letter being distributed to U.S. senators, who must vote to confirm Scully, Dr. Charles H. Roadman, II and AHCA Legislative Counsel Bruce Yarwood states: “As HCFA administrator, Tom Scully will have the responsibility for leading dramatic change.”

The opportunity for HCFA reform is the brightest it’s been in years,” Roadman predicted, expressing confidence that the controversial survey and enforcement apparatus will be closely scrutinized by Scully and the Bush White House.

In a public statement, the American Association of Homes and Services for the Aging’s senior vice president Suzanne M. Weiss states that her nonprofit provider group looks forward to working with the new HCFA administrator.

“As we look for ways to improve the current nursing home and inspection and enforcement system and reimbursement system.  We hope Mr. Scully will be o pen to our efforts in his new position,” Weiss says.