Tag Archives for Max Richtman

Trustee reports: Social Security and Medicare still face financial woes

Published in RINewsToday on April 10, 2023

Over a week ago, the Trustees of the Social Security and Medicare trust funds released their annual reports on the financial health of these two programs. As in prior years, the trustees found that the Social Security and Medicare programs both continue to face significant financing issues.

The latest Social Security projections show the program is quickly heading toward insolvency and calls for Congress to find policy solutions sooner rather than later to prevent abrupt changes to tax or benefit levels.  The Washington, DC-based National Committee to Preserve Social Security and Medicare (NCPSSM) and other aging advocates are urging Congress to take prompt action to strengthen and expand Social Security, while Republicans have been calling for cuts to future retirees’ benefits and at least partly privatizing the program. 

This 270- page 2023 Social Security Trustees Report warns that if Congress does not act, Social Security’s Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds, which help support payouts for the elderly, survivors and disabled, will become depleted in 2033 (that’s a year earlier than forecast last year), becoming totally insolvent in 2034 when beneficiaries would only receive about 80% of their scheduled benefits. 

According to the Social Security Administration (SSA), roughly 66 million people received monthly Social Security checks in 2022 (175,840 in Rhode Island). A vast majority, or about 57 million of those beneficiaries, received benefits through the OASI Trust Fund, compared to nearly 9 million people who received benefits through the DI Trust Fund. 

The trustees say that Social Security funds would be fully depleted in 2034 because of expectations of a slowed economy and reduce labor productivity, considering inflation and economic input.

Although the DI Trust Fund asset reserves are not projected to become depleted during the 75-year projection period, being able to pay full benefits through 2097, the combined Social Security funds would only be able to pay 80% of the scheduled benefits after 2034, says the trustees report.

Taking a look at Medicare’s fiscal health

Medicare, the hospital insurance trust fund referred to as Medicare Part A, will only be able to pay scheduled benefits in full until 2031, according to the 273-page trustees’ annual report. The program covered 65 million seniors and people with disabilities in 2022, and will only be able to cover89% of total scheduledbenefits at that time.

Although the Medicare Part A Hospital Insurance trust fund will become insolvent in just eight years, Medicare spending as a whole (including Parts A, B, D, and Medicare Advantage, will continue to grow over the coming years.

The Medicare Trustees project a shortfall of 0.62 percent of payroll, or 0.3 percent of Gross Domestic Product (GDP), noting that it would take about a 21 percent (0.6 percentage point) increase in the payroll tax rate or a 13 percent spending cut to restore the program’s solvency.

The improvement of Medicare’s hospital trust fund’s finances over last year’s projections can be tied to lower estimates for health care spending after the height of the Covid-19 pandemic along with more projected income that the trustees estimate coming from a larger number of covered.

Dueling political statements

With the Social Security and Medicare Trust Fund reports released on March 31, 2023, the Chair and Ranking Members of the House Ways and Means (HWM) were quick to issue dueling statements to give their political spins. HMW’s Subcommittee on Social Security has jurisdiction on bills and matters related to the Social Security Act.

House Ways and Means Chairman Jason Smith (R-Missouri) charged that reckless Democratic spending has impacted the financial viability of the Social Security and Medicare Programs.  “Thanks to President Biden’s economic failures, seniors’ hard-earned benefits are further under threat. Social Security’s combined trust funds are expected to become insolvent a full year sooner than forecast in the previous report as a result of a slowed economy and Democrats’ inflation continuing to outpace wage growth. And Medicare’s latest report comes amidst Biden’s plans to slash seniors’ access to innovative new cures and treatments,” says Smith, stressing that “the first step to protecting these programs is “growing the economy – not budget gimmicks or tax increases that hold back economic growth.

On the other hand, House Ways and Means Committee Ranking Member Richard E. Neal (D-MA) counters Smith’s political perspective. “While Democrats are committed to the long-term health of these programs, Republicans are launching another shameful assault on the economic well-being of millions of workers and retirees with their plan to make drastic cuts to Social Security and Medicare, warns Neal. “Their playbook is clear: slashing a critical resource that Americans have rightfully earned to give another tax cut to the top 1%. Democrats won’t let their reckless attacks stand, and we will continue to defend and protect Social Security and Medicare for generations to come.”

Rhode Island Congressmen were quick to give their comments about the release of the two trustee reports, too. “Unlike the nearly three-quarters of House Republicans who endorsed slashing Social Security in 2022 – reducing benefits by $729 billion over 10 years – House Democrats are working to protect Social Security for generations to come,” says Congressman David N. Cicilline, representing Congressional District 1.  Cicilline, who is retiring his seat on May 31, 2023, has pushed to expand and strengthen Social Security over his six-terms in office.

Cicilline asks: “Sixty-six million Americans rely on this essential program to make ends meet and we cannot allow Republicans to make any cuts to this hard-earned benefit. The drug spending savings implemented by our Inflation Reduction Act will not only keep money in seniors’ pockets but will also drive down costs to Medicare itself. We’ve been taking real action to strengthen these programs and help our seniors – what have Republicans done?”  

As Rhode Island’s newly elected Congressman, Seth Magaziner says he will “fight tooth and nail to protect Rhode Islander’s hard-won Social Security benefits.”   In responding to the trustee’s report about Social Security’s financial woes, Magaziner called for raising the cap on Social Security taxes, forcing “millionaires and billionaires to pay the same rate as teachers and fire fighters.”

“I stand ready to work with anyone who is serious about strengthening Social Security, not cutting hard-earned benefits,” says Magaziner. 

While there are few fixes being proposed by either party or leader, some fixes identified by the Program for Public Consultation at the University of Maryland that “Americans might be willing to support” include:

–        raising the Social Security payroll tax cap

–        reducing benefits for high earners

–        gradually raising the retirement age

–        increasing the payroll tax

–        raising the minimum benefit

–        changing cost-of-living adjustment calculations

–        increasing benefits for beneficiaries over age 80

Social Security advocacy group gives its two cents

“Contrary to conservative claims, Social Security is not ‘going bankrupt’; the program will always be able to pay benefits because of ongoing contributions from workers and employers. In fact, this is yet another Trustees report showing that Social Security remains strong in the face of turmoil in the rest of the economy,” says Max Richtman, NCPSSM’s President and CEO in a release on the Social Security Trustee Report. He notes that the program’s insolvency date has stayed roughly the same even after a global pandemic and recent economic upheavals. 

Congress can strengthen Social Security by bringing in additional revenues into the program, says Richtman.  NCPSSM endorses legislation introduced by Senator Bernie Sanders (D-Vermont) and Congressman John Larson (D-Connecticut) to keep the trust fund solvent for the rest of this century while expanding program benefits.  Both bills would adjust the Social Security payroll wage cap so that higher-income earners begin contributing their fair share, he notes.

As to Medicare, in a release Richtman called on Congress to take “pre-emptive action now” to protect the Medicare Part A trust fund from becoming depleted in 2031, three years later than estimated in their previous report, at which time Medicare could still pay 89% of benefits.  

“Beyond trust fund solvency, the Trustees reported that the standard Medicare Part B premium will rise next year to $174.80 per month – a $10 or six percent monthly increase,” says Richtman. “Any 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,” he said. 

“We support President Biden’s plan to strengthen Medicare’s finances, as laid out in his FY 2024 budget.  His 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 prescription drug costs — and some of those savings would be used to extend the solvency of the Part A trust fund,” said Richtman.

For a copy of the 2023 Social Security Trustee Report, go to https://www.ssa.gov/OACT/TR/2023/.

For a copy of 2023 Medicare Trustee Report, go to https://www.cms.gov/oact/tr/2023.

Problem Solvers Caucus may be key to re-establishing Committee on Aging

Published in RINewsToday on Jan. 16, 2023

H.R. Res. 583, Reestablishing the Permanent House Select Committee on Aging (HSCoA), chances were growing slim in getting Congressional attention for passage in the final days of the 117th Congress. Extensive media coverage of the ongoing Ukraine War, the wrap up and issuance of the Jan. 6th hearing’s report and midterm election coverage kept Congressman David Cicilline’s (D-RI) resolution from getting political traction from being considered by the House Rules Committee for ultimate passage and floor action.

The HSCoA was a permanent select committee of the U.S. House of Representatives between 1974 and 1992. The committee was initially created with the intent not of crafting legislative proposals, but of conducting investigations and holding hearings to put the Congressional spotlight on aging issues. Its purpose was to push for legislation and other action, working with standing committees, through regular committee channels. If  H. Res. 583 was passed by the House Rules Committee, it would have brought back the HSCoA. No Senate action was required.

According to the Congressional Research Services, it is a very simple process to create an ad hoc (temporary) select committee by just approving a simple resolution that contains language establishing the committee—giving a purpose, defining membership, and detailing other issues that need to be address.  Salaries and expenses of standing committees, special and select, are authorized through the Legislative Branch Appropriations bill.

Taking a Looking Back

Last Congress, Cicilline’s H. Res 583 would reestablish a HSCoA without having legislative jurisdiction, this being no different than when the select committee previously existed. It would be authorized to conduct a continuing comprehensive study and review of aging issues, such as income maintenance, poverty, housing, health (including medical research), welfare, employment, education, recreation, and long-term care. These efforts influenced legislation taken up by standing committees.

H. Res. 583 would authorize the reestablished HSCoA Committee to study the use of all practicable means and methods of encouraging the development of public and private programs and policies which will assist seniors in taking a full part in national life and which will encourage the utilization of the knowledge, skills, special aptitudes, and abilities of seniors to contribute to a better quality of life for all Americans.

It would also allow the HSCoA to develop policies that would encourage the coordination of both governmental and private programs designed to deal with problems of aging and to review any recommendations made by the President or White House Conference on Aging in relation to programs or policies affecting seniors.

Cicilline’s H. Res. 583 drew the support and attention of the Max Richtman, President and CEO of the Washington, DC-based Leadership Council on Aging and a former Staff Director of the Senate Permanent Special Committee on Aging, along with President Nancy Altman of Social Security Works, and Chair of Strengthen Social Security Coalition.   

Robert Weiner, former chief of staff of the HSCoA, Tom Spulak, former staff director and General Counsel of the House Rules Committee and Vin Marzullo, a well-known aging advocate in Rhode Island, including this writer were strong advocates for passage of this resolution.

Although H. Res. 583 had strong backing from the aging network, the bill never was endorsed by House Speaker Nancy Pelosi nor considered by the Democratic controlled House Rules Committee As a result, the resolution never reached the House floor for a vote. As a result, the resolution died at the end of the 117th Congressional session.

The House must reestablish the HSCoA

It is now crucial for Cicilline to reach across the aisle for Republican cosponsors when he reintroduces H. Res. 583 during the new Congress. The need for reestablishing this investigative committee still exists today as when it was first introduced eight years ago.

“America’s seniors have spent a lifetime working hard and moving our country forward and they deserve the financially secure retirement that they worked and paid for. The pandemic disproportionately impacted seniors, and now those with fixed incomes are bearing the burden of inflation and the higher costs food, housing, and other essentials,” says Cicilline.

“I’m extremely proud that we were able to institute a $35 cap on insulin costs and bring down prescription and medical costs for seniors through the Inflation Reduction Act, but there is more work to be done. Reauthorizing the House Permanent Select Committee on Aging will give us the dedicated staff and resources necessary to study and address the issues that affect seniors to make sure they can live the rest of their lives with dignity and security,” adds Cicilline.

“It is vitally important that we ensure Rhode Island seniors have the financial security, access to high quality health care and quality of life they have earned. For this reason, I am proud to support the reestablishment of the HSCoA, and encourage my colleagues on both sides of the aisle make senior citizens’ issues a priority in the 118th Congress,” adds newly elected Congressman Seth Magaziner.

In the article, “Senior’s Need House of Reps to Bring Back Aging Committee,” I previously coauthored with Tom Spulak and Robert Weiner on this statewide news blog last July, provides the rational and reasoning for reestablishing the HSCoA.

Specifically…

“Every day, 12,000 Americans turn 60. By 2030, nearly 75 million people in the U.S.—or 20 percent of the country—will be age 65 or older. As America grows older, the need for support and services provided under programs like Social Security, SSI, Medicare, Medicaid and the Older Americans Act also increases,” and the need for re-establishing the HSCoA becomes even more important.”

“Historically, the HSCoA served as a unique venue that allowed open, bipartisan House debate from various ideological and philosophical perspectives to promote consensus that, in turn, helped facilitate the critical work of the standing committees. Addressing the needs of older Americans in a post-pandemic world will require this type of investigative, legislative oversight, work which can only be advanced and promoted by reestablishing the HSCoA.”

“As Americans are aging, we also face a variety of intergenerational concerns that merit the investigation by the HSCoA, such as growing demands on family caregivers and a burgeoning retirement security crisis.”

“Restoring the HSCoA would provide the House with an opportunity to more fully explore a range of aging issues and innovations that cross Standing Committee jurisdiction of importance to both Republicans and Democrats, while holding field hearings, convening remote hearings, engaging communities and promoting understanding and dialogue.”

“Today, the Senate Permanent Special Committee on Aging is working on everything from scams against seniors to increasing HCBS services, to calling out questionable billing practices by Medicare Advantage insurers. Seniors have been better off over the last 30 years with a Senate Aging Committee in existence — and the Senate investigative committee would benefit from a reestablished HSCoA, whose sole mission would be to look out for older American.”

“Over 30 years ago, working closely with authorizing committees with jurisdiction over aging programs and services, the HSCoA put an end to mandatory retirement.  Alzheimer’s became a household word because of its investigative hearings. Legislation was passed to improve the quality of care in the nation’s nursing homes, even creating the nation’s National Institute’s for Health.“

Centralist to play key role in passage 

“This is a unique moment in time where centrists from both sides in the House could influence legislative action thru genuine bipartisan collaboration”, said Vin Marzullo, who served 31 years as a career federal civil rights & social justice administrator at the National Service agency.   “I am urging our newly elected Congressman, Seth Magaziner, to join with the lead sponsor, Congressman David Cicilline, in the re-introduction of the House Resolution to re-establish HSCoA. 

Additionally, I would advise that bipartisan efforts begin by reaching out to Congressmen Brian Fitzpatrick (R-PA and Josh Gottheimer (D-NJ), co-chairs of the “Problems Solvers Caucus,” for their co-sponsorship/support”, added Marzullo.  “That could be a pathway for better legislating and governing and Congressman Magaziner stated during the campaign that he’d look for common ground with members on the other side of the aisle.  This is it — we need an adult conversation about the Aging of America and how we intend to aid and support our elders, caregivers, and long term care options.”

We’ll see if Cicilline and Magaziner tag-team for a fifth attempt to reestablish the HSCoA.  For the sake of improving the quality of life of America’s seniors, House Speaker Kevin McCarthy (R-Calif) must put politics aside and work with a Bi-Partisan Coalition and the Democratic Caucus, to achieve real results for our nation’s older adults. 

For details about the House Problem Solvers Caucus, go to  https://problemsolverscaucus.house.gov/.

Pelosi passes gavel to “younger” generation

Published in RINewsToday on Nvember 21, 2022

With the dust settling after the mid-term elections and GOP taking control of the lower-chamber, House Speaker Nancy Pelosi (D-CA), followed by the No. 2 Democratic, House Majority Leader Steny Hoyer (D-Maryland), will give up their leadership positions although both will keep their Congressional seats next year.

“While [House Majority Whip] Jim Clyburn [D-SC] has ceded his No. 3 position, he’s now seeking to remain in leadership next year in the No. 4 assistant leader slot,” reports Mike Lillis and Mychael Schnell, in a Nov. 19 article, “Democrats’ Leadership Shakeup in Decades Takes Shape with No Drama – Almost,” on the website, The Hill. In a letter to his Caucus members, Clyburn makes his case to stay in leadership by saying he would be a benefit to the new leadership team coming in next Congress.

Pelosi was first elected to Congress in 1987. Since 2003, Hoyer and Clyburn have led the House Democratic Caucus.

Kudos to retiring House Speaker Nancy Pelosi

Last Thursday, Nov. 17, Pelosi, 82, announced on the House floor that she would not seek a Democratic leadership role in the 108th Congress.  This came after the House lost its Democratic majority to the Republicans, albeit by a small margin.

“And with great confidence in our Caucus, I will not seek re-election to Democratic leadership in the next Congress,” she said. “For me, the hour has come for a new generation to lead the Democratic caucus that I so deeply respect. And I am grateful that so many are ready and willing to shoulder this awesome responsibility,” said Pelosi, the first and only woman who served as House Speaker and led the Democratic House Caucus for over two decades.

With a slim Republican majority in the House, President Joe Biden had encouraged Pelosi to stay as House Speaker for the last two-years of his term. After her announcement, the President recognized her legislative accomplishments and serving her San Francisco constituents for over 35 years. “With her leading the way, you never worry about whether a bill will pass. If she says she has the votes, she has the votes,” he said.

“Speaker Pelosi, as President Biden said, will be remembered as the most consequential Speaker in our nation’s history. A key part of that role is empowering the next generation, and ensuring that the Democratic Caucus has strong leadership moving forward. I am thrilled that the Speaker will continue to serve in the 118th Congress, representing her home of San Francisco, and enabling the Caucus to continue to learn from her and benefit from her wisdom and experience,” says Congressman David Cicilline, representing RI Congressional District 1.

Cicilline calls Pelosi a brilliant political tactician 

In a statement released after Pelosi took to the House floor to step down from House Democratic leadership, Cicilline stated:   

“Today is a bittersweet day for our country as we mark the end of Speaker Nancy Pelosi’s tenure as the leader of the House Democratic Caucus. I have been lucky enough to serve with and learn from one of the greatest political minds in our country for the past twelve years and am honored to call her a mentor, and most importantly, a close friend.  I remain in constant awe of her brilliance, toughness, and dedication to service. Nancy Pelosi led our party to the majority twice and saw our country through some of the toughest times in our nation’s history including the COVID pandemic and the attack on our democracy on January 6, 2021.” 

“The House Speaker’s historic career will not just be remembered for the barriers she broke but also for the incredible progress she delivered for the American people and her beloved San Francisco, said Rhode Island’s Senior Congressman.

According to Pelosi’s House leadership, the Democrats were able to reform the nation’s delivery of health care, deliver accessible and affordable care to millions of Americans, make the largest investment in infrastructure improvements and climate change mitigation in the country’s  history, also ensuring that every single American got the relief they needed and deserved as they faced a once in a lifetime global pandemic.  Pelosi also “protected the nation’s democracy against those who sought to overturn the election result and destroy the very fabric of our nation,” he said.

“Speaker Pelosi has always supported my work since I first came to Congress in 2011 and has been a steadfast ally on gun safety legislation and LGBTQ+ equality. I am also grateful for the trust she placed in me to serve as an impeachment manager following the attack on the Capitol on January 6, 2021, says Cicilline.  

“In addition to our work in Washington, I’ve had the pleasure of welcoming her to Rhode Island many times, where her grandparents first met, and am thankful for her focus on delivering for every American and all Rhode Islanders,” noted the Rhode Island Congressman.

Cicilline added: “Having come from big, loving Italian families, we both learned from a young age the importance of putting family first and looking after our neighbors. We share a commitment and belief that every hardworking American deserves the ability to provide a safe, warm home for their children and the opportunity to get ahead. She has helped to deliver monumental legislation to empower Americans, including the Lily Ledbetter Fair Pay Act, providing paid parental leave for federal workers, expanding educational opportunities and student aid, and increasing the minimum wage.” 

“An outspoken proponent of equality, she has been a champion of the Equality Act and the Respect for Marriage Act and led the repeal of the homophobic ‘Don’t Ask, Don’t Tell’ policy to finally allow every member of our nation’s military to serve fully as themselves,” said Cicilline, noting that her “trailblazing 35-year tenure in Congress, 19 of those as Democratic Caucus leader, have been defined by her unwavering commitment to service, the American people, and belief that each of us deserves the chance to live our own American Dream.”   

Adds says Congressman-elect Seth Magaziner. “House Speaker Nancy Pelosi has served this democracy here and around the globe, while never losing sight of what matters most: rebuilding the American Dream for working people across the country.” 

“I thank Speaker Pelosi for her tremendous leadership and am excited for the next generation of leaders that will tackle the biggest questions of our time— rebuilding our middle class and creating a fairer economy, fighting climate change, and turning the page on Trump-extremism once and for all,” added Magaziner.

“Nancy Pelosi not only has been master of legislative procedure, a unifier of her caucus, a skilled tactician – and someone who broke the ‘marble ceiling’ for women in the halls of Congress. She shepherded several crucial pieces of legislation through Congress to improve the health and well-being of older Americans, including the Affordable Care Act and the Inflation Reduction Act,”  says Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM).

“She will be missed as a leader and a champion for our most vulnerable citizens,” says Richtman, noting that NCPSSM looks forward to a continued working relationship on issues vital to America’s seniors with whomever emerges as the next Democratic leadership team in the House.

During Pelosi’s announcement the Republican side of the chamber was nearly empty except for a few members, including House Republican Whip Steve Scalise (R-Louisiana). Scheduled meetings kept House Minority leader Kevin McCarthy from attending Pelosi’s noontime announcement that she was stepping down as the House Democratic leader. Later he would tell reporters, “I had meetings but normally the others would do it during votes — she could’ve done that, I would’ve been there,”  he said.

While Senate Minority Leader Mitch McConnell (R-Kentucky) noted that he had frequently disagreed “forcefully” over the years he congratulated the Democratic House Speaker on “concluding her historic tenure” and her “consequential and path-breaking career.”

Is Passing the Political Touch a Good Thing?    

At press time, Reps, Hakeem Jeffries, 52, of New York, Katherine Clark, 59, of Massachusetts and Pete Aguilar, 43, of California are jockeying for the top three Democratic House leadership slots.

“The new leadership team is great, but it should not be exclusively composed of young lawmakers,” says Robert Weiner, former Chief of Staff to Congressman Claude Pepper’s House Select Committee on Aging, former White House staffer, who has written over 1,000 Op Eds published in major media outlets throughout the nation.  

Many characterize Pelosi, Hoyer, and Cyburn stepping down as the “passing of the political torch,” in the House, from one generation to the next, even though the new up and comers are in their 40s and 50s. Weiner questions, “Is this a good thing to celebrate.”

“I am very concerned about the lack of aging leadership with all the wisdom and guidance leaving the podium. “I have written about age discrimination including it occurrence in politics,” says Weiner, calling for voters to decide when it is time to go.

Will the new leadership team take guidance from the outgoing House Democratic Leadership Team?  “We will see how the new team seeks and takes the advice of recent leadership that had such success or puts them on the shelf,” says Weiner.