Tag Archives for Medicare

GOP Trial Balloon Called “Trojan Horse”

Published in Woonsocket Call on April 16, 2017

In previous years, the GOP leadership, now controlling both chambers of Congress, pushed legislative proposals to eliminate Social Security and Medicare by privatizing these programs. These attempts were clearly visible for all to see. But, we are in new political times with a GOP White House seeking the destruction of these programs, too, but as some say through the back door.

According to an Associated Press story, published on April 10, 2017, as the Trump Administration begins to learn from its failed attempt to repeal Obamacare, tax code reform is now on its agenda. One trial balloon, being floated by a GOP lobbyist with close ties to the Trump Administration, would eliminate the mandated payroll tax that all American workers pay to fund Social Security and Medicare.

“This approach would give a worker earning $60,000 a year an additional $3,720 in take-home pay, a possible win that lawmakers could highlight back in their districts even though it would involve changing the funding mechanism for Social Security, according to a lobbyist, who asked for anonymity to discuss the proposal without disrupting early negotiations,” says Writers Josh Boak and Stephen Ohlemacher in their Associated Press story.

Currently, about 163 million American workers pay Social Security taxes and 59 million retired and/or disabled persons collect monthly benefits. About one family in four receive income from Social Security. The nation’s social insurance and welfare program is a “pay-as-you-go-program.” Today’s workers support the program by paying their taxes into the program and the money flows back out to the program’s current beneficiaries.

GOP Stealth Attack on Social Security

Responding to the GOP trial balloon, in her blog post published last Tuesday on the Huffington Post, a politically liberal American online news web site, Contributor Nancy Altman, President of Social Security Works called the GOP trial balloon “a Trojan horse”, noting that “It appears to be a gift, in the form of middle class tax relief, but would, if enacted, lead to the destruction of working Americans’ fundamental economic security.”

If President Trump proposes “the Trojan horse, it would be the newest shot in the ongoing Republican war against Social Security. That war has failed so far. The American people overwhelmingly support Social Security because they appreciate that it provides working families with basic economic security when wages are lost as the result of death, disability, or old age. And it does so extremely efficiently, securely, fairly, and universally,” says Altman in her April 11, 2017 blog post.

According to Altman’s blog posting, after Trump and GOP lawmaker have suffered legislative defeats in their “frontal attacks” against Social Security to eliminate the programs “it appears they are contemplating a “stealth attack instead.” She noted, “In the 1980s, Republicans, who had long tried but failed to cut government programs directly, discovered a new tactic. They realized that they could undermine government and eventually force cuts to spending by cutting taxes and, in their words, starve the beast. Now, Trump is making plans to use that same tactic against Social Security.”

“Not only would the Trump proposal starve Social Security of dedicated revenue, it would ultimately destroy it. Social Security is not a government handout. It is wage insurance that the American people earn, as part of their compensation, and, indeed, pay for with deductions from their pay,” observed Altman.

Altman warns that GOP lobbyist’s proposal to eliminate the payroll tax to fund Social Security is consistent with Trump’s previous actions. “No one should be fooled by Trump’s campaign promise not to cut Social Security. Before he became a candidate, he called it a Ponzi scheme and advocated privatizing it. He chose, as his vice president, Mike Pence, who complained that the Bush privatization proposal didn’t go far enough, fast enough. As President, he has chosen a staunch opponent of Social Security, Mick Muvaney, as his budget director, and another staunch opponent, Tom Price, as Secretary of Health and Human Services (one of Social Security’s trustees.), she said.

In an email urging recipients to sign a petition to protect Social Security’s funding [the payroll tax], Michael Phelan, Deputy Director of Social Security Works noted, “For decades, Republicans in Washington and Wall Street bankers have told us that Social Security is going broke―even though Social Security has a $2.8 trillion surplus and can pay out 100% of benefits for the next 17 years and over 75% of benefits owed after that.” He warns the “Republican’s tax plans might be a self-fulfilling prophecy. By starving Social Security of funding, they could finally receive their wish―replacing Social Security’s guaranteed benefit with unstable Wall Street retirement plans.”

The “Great Wisdom” of a Payroll Contribution Tax

Max Richtman, President & CEO of the National Committee to Preserve Social Security and Medicare, says, “It’s no surprise that the GOP lobbyist who suggested this dangerous idea and remained anonymous. After all, who would want to own up to an idea that would trigger the collapse of the most successful government program in U.S. history?”

Richtman adds, “Peddling this kind of scheme reminds me of President George W. Bush’s 2005 privatization proposal. Only in this case, the risk factor shifts from the uncertainty of Wall Street to benefit cuts that will almost certainly occur when Social Security is forced to compete for government funding with other discretionary programs. There was great wisdom in President Roosevelt’s plan for funding Social Security through a dedicated payroll tax. As President Roosevelt said, ‘We put those payroll contributions there to give the contributors a legal, moral and political right to collect their pensions…No damn politician can ever scrap my social security program.”

Darrell West, Vice President and Director of Governance Studies at the Washington, D.C.-based the Brookings Institution, sees an uphill battle to formalize the tax policy to eliminate the payroll contribution to fund Social Security. “I don’t think Trump will be able to eliminate or reduce the Social Security tax because of its dire consequences for the program itself. The program is very popular with the general public and many recipients count it as their sole support. Republicans will get killed if they try to do this. It is not a viable option now or anytime in the near future.”

When Trump releases his tax code reform proposal, aging advocates must remember that the devil is in the details. Read the proposal thoroughly with a fine-tooth comb

GOP Health Care Proposal Pulled at Last Moment

Published in Woonsocket Call on March 26, 2017

Days ago, unified Democratic lawmakers combined with a deep philosophical wedge between the conservative House Freedom Caucus and moderate Republicans over policy details of the American Health Care Act (AHCA), forced the Trump Administration and House Speaker Paul Ryan to pull the AHCA proposal minutes from a floor vote to steer it away from a humiliating legislative defeat last Friday. Interestingly, the seventh anniversary of President Barack Obama signing the Affordable Care Act (ACA), his signature health care law, took place one day before the House vote.

A day before Friday’s scheduled vote to dismantle and repeal Obama’s ACA, President Donald Trump taking a high-risk negotiation tactic straight out of his bestselling book, “The Art of the Deal,” gave a late-Thursday night ultimatum to the House GOP lawmakers. Trump told to them to vote up or down on AHCA or he would be prepared to move on to other legislative agenda items.

As to Trump’s ultimatum to GOP House lawmakers, CNN Presidency Historian Timothy Naftali noted on CNN Newsroom with Fredricka Whitfield, “He played chicken and he blinked.”

House GOP Making Legislative Sausage

In a report issued on March 13, the Congressional Budget Office (CBO), detailed the drastic impact of the initial AHCA legislative proposal. CBO, a federal agency that provides budget and economic information to Congress, found that AHCA would result in 24 million losing health insurance coverage by 2026, Medicaid would be cut by $880 billion over the next ten years, and premiums and out-of-pocket costs would skyrocket increase, particularly for older adults and individuals with lower incomes.

Earlier this week, on Monday, Ryan and his House GOP Leadership team made eight amendments to AHCA to pull in skeptical GOP moderate and conservative lawmakers, including the controversial speeding up tax cuts while whittling down the Medicaid program. Later, on March 23, CBO confirmed that these amendments would lead to essentially the same level of coverage losses, about 24 million people and cost increases for individuals and would yield $187 billion less in savings than the original GOP health care proposal.

Meanwhile, on Wednesday, Senator Wyden and Congressman Pallone revealed that the Center for Medicare & Medicaid Services’ independent Actuary “estimated that the repeal of the tax on prescription medications, known as the ‘pharma fee,’ beginning January 1, 2017 would increase Medicare Part B premiums by $8.7 billion through fiscal year 2027.” noted the Center for Medicare Advocacy.

On Thursday, three more amendments were offered to sway GOP House critics. One would strip the requirement that insurance companies cover essential health benefits (EHB). This amendment would effectively eliminate annual out-of-pocket caps, reinstate annual and lifetime coverage limits, and gut protections for pre-existing conditions. Another would delay – but not remove – the Medicare payroll tax cut that will undermine Medicare’s financing and its future stability.

After the defeat of AHCA, Trump blamed the Democrats for the House GOP’s failure to pass its health care proposal to scrap Obamacare. “The Democrats were not going to give us a single vote,” he said, warning that “Obamacare will explode” forcing the opposition party back to the negotiation table to craft a better health care law.

House Speaker Ryan also noted that “We are going to be living with Obamacare for the foreseeable future.”

“We just really did not get a consensus today,” say Ryan. “That’s why I thought the wise thing to do was not proceed with a vote but to pull the bill. When asked if he was going to try “to prop it up, Ryan responded by saying “it is so fundamentally flawed, I don’t know that that is possible.”

Sighs of Relief from Aging Groups, Democrats

“The American Health Care Act is not American in spirit or health care in substance. In fact, it’s a tax cut bill for the wealthy, not a health care bill for the people. It will make America sicker. Congress should reject this charade and this disaster of a bill today,” states Judith Stein, Executive Director of the Center for Medicare Advocacy.

“The House Congressional leadership was destined to lose on their disastrous American Health Care Act, which would have effectively repealed Obamacare and hurt seniors, including beneficiaries of Medicare and Medicaid. It doesn’t matter whether they pulled or failed to pass the bill,” says Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare in a statement. “It needed to go down and we thank the millions of National Committee members and supporters – and those of other senior advocacy organizations – whose protests were loud, numerous, and furious.”

“No one knew’ that health care could be so complicated. Hopefully, he has learned a lesson… that health legislation is built on a complex foundation that considers the real human needs – and costs – of changes to the system. A common refrain from Donald Trump during the campaign was, ‘What do you have to lose by electing me?’ Now we know what’s at stake: affordable health care for older Americans, Medicare, and Medicaid,” says Richtman.

“The leadership’s decision to withdraw the bill from consideration proves that the voices of Americans are very powerful. This harmful legislation would have added an Age Tax on older Americans and put vulnerable populations at risk,” says AARP Executive Vice President Nancy LeaMond, in a statement.

LeaMond calls on Congress to focus on the issues important to older Americans and their families, including: protecting and improving Medicare’s benefits and financing; providing access to affordable quality coverage; preventing insurers from engaging in discriminatory practices; lowering prescription drug costs; providing new incentives to expand home and community based services; and strengthening efforts to fight fraud, waste, and abuse.

Adds, Justice in Aging Executive Director, Kevin Prindiville, “Congress tried to rush this disastrous bill through Congress without regard for the health and safety of older Americans and their families, and such a bill cannot and should not be revived. Older adults and their families rely on Medicaid and Medicare and these programs must be protected.”

Compromise might well be the way to make sound changes to the nation’s health care law, says Rep. David N. Cicilline (D-RI), who serves as House Democratic Policy and Communications Committee. “The Affordable Care Act is a good law, and Republicans and Democrats should be working together to make it even better. If Republicans ever decide to come to the table, we should work together to increase competition, expand coverage, and bring down premiums. That’s a decision that Republicans have to make – whether to work with Democrats or continue down the path they’re on,” he says.

Rep. James Langevin (D-RI) also stresses the importance of reaching over the aisle to create a better health care law and getting away from partisan bickering. “It’s time for Republicans to move on from their misguided crusade to dismantle the ACA. The health care law has brought insurance coverage to millions of Americans. Its consumer protections, premium assistance, essential health benefits, and countless other provisions that were at risk of elimination have improved our nation’s health and saved lives. We must work together in a bipartisan manner to strengthen and improve the ACA, not risk the health and wellbeing of everyday Americans for an empty, partisan victory,” he says.

Cicilline: Let’s Bring Back the House Permanent Select Committee on Aging

Published in the Woonsocket Call on March 5, 2017

Twenty-three years after the House eliminated the House Permanent Select Committee on Aging, Rep. David N. Cicilline (D-RI) introduced a House resolution days ago to reestablish the House select committee, once charged with investigating and putting a spotlight on aging policy, spurring legislation and other actions. During the last Congressional session, Cicilline, attracting 63 cosigners (no Republicans) out of 435 lawmakers, threw his simple resolution into the House legislative hopper only to see no action taken.

During the 115th Congress, on March 1, 2016, Cicilline introduced House Resolution 16, which would bring back the House Permanent Select Committee on Aging. Its charge would be to conduct a continuing comprehensive studies on specific aging policy to identify issues, problems and trends. Like the former House Select Committee, its work would not be limited by narrow jurisdictional boundaries of the standing committees but broadly at the targeted aging issue.

According to Cicilline, all standing and select committees of the House (except Appropriations) are authorized by a simple House resolution, detailing purpose, defining membership and any other issue that needs to be addressed, and funding is then provided through appropriations.

House Aging Panel to Play Important Role in Today’s Congress

It is extremely obvious to Cicilline and his 24 Democratic cosigners that included Rep. James R. Langevin (D-RI), about the important role the House Permanent Select Committee on Aging would play in today’s Congress. In explaining why he introduced the simple resolution, Cicilline tells this writer that, “Our nation’s seniors deserve dedicated attention by lawmakers to consider the legislative priorities that affect them, including Social Security and Medicare, the rising cost of prescription drugs, poverty, housing issues, long-term care, and other important issues.”

“As you know, the House Permanent Select Committee on Aging was active in the House of Representatives between 1974 and 1993 with the purpose of “advising Congress and the American people on how to meet the challenge of growing old in America,” noted Cicilline, who represents the state’s First Congressional District. “ The select committee did not have legislative authority, but conducted investigations, held hearings, and issued reports to inform Congress on issues related to aging,” he said.

Cicilline says, “The reestablishment of this Select Committee would emphasize Congress’ commitment to our current and future seniors and would allow us to focus our energy to ensure that they are able to live with dignity and enjoy a high quality of life,”

A newly operational House Permanent Select Committee on Aging would be charged with conducting ongoing comprehensive studies to examine the myriad of problems that older Americans face, taking a look at income maintenance, poverty and welfare, housing, health (including medical research), employment, education, recreation, and long-term care.

The newly established House Select Committee would also study ways that would encourage the development of public and private sector programs and policies that would keep older Americans active in their community. Finally, hearings would generate federal policies to encourage coordination of both governmental and private sector programs designed to deal with problems of aging. House Lawmakers and staff on this Select Committee would also review any policy recommendations made by the President or by the White House Conference on Aging that impact the nation’s older population.’

Hammering the Nail in the Casket

Claude Pepper’s death in 1989, who had served as a former Chairman of the House Permanent Select Committee on Aging, might have been an omen to aging groups of the bleak future of the House Aging panel. In 1993, Congress moved to tighten its belt to match President Clinton’s White House staff cuts. Democratic House leadership’s efforts to streamline its operations by slashing $1.5 million from its budget jurisdictions over aging policy would lead to its elimination in that year.

If alive in 1993, Rep. Pepper (D-Florida), serving as the House Permanent Select Committee on Aging, its chair for six years and considered by many to be the nation’s most visible Congressional advocate for the nation’s seniors, would have fought tooth and nail to save his beloved Select Committee.
House lawmakers who opposed the elimination of this Select Committee warned that standing committee staff did not have the time nor resources to thoroughly investigate aging policy but this select committee did. Even with these arguments and the intense lobbying of aging groups, including AARP, National Council on Aging, National Council of Senior Citizens, and Older Woman’s League, the House Permanent Select Committee on Aging could not be saved. No vote was scheduled to continue its existence on March 31, 1993 when its authorization automatically expired.

The former House Permanent Select Committee on Aging did have an impact on crafting national aging policy. In 1993, with the demise of this select committee staff, writer Rebecca H. Patterson reported on March 31, 1993 in the St. Petersburg Times that Staff Director Brian Lutz said that during its 18 years, the House Aging panel “has been responsible for about 1,000 hearings and reports.”

Throughout its existence, the House Permanent Select Committee on Aging prodded Congress to abolish forced retirement, reform nursing home operations and reduce abuse against patients, to increase home care benefits, cover breast screening for older women, combat elder abuse, improve elderly housing as well as establish research and care centers for Alzheimer’s Disease.

Support from the Trenches

It’s about time that Congress brings back the House Permanent Select Committee on Aging, say long time aging advocates.

As a former Staff Director of the Senate Select Special Committee on Aging, Max Richtman, CEO and President of the Washington-DC based National Committee to Preserve Social Security and Medicare, says bringing back the House Permanent Select Committee on Aging is “long overdue.” The House Aging panel will once again provide serious oversight and lay the ground work for House legislative proposals impacting Social Security, Medicare and Medicaid, he says.

According to Richtman, the Rhode Island Congressman is highly regarded by House Democratic lawmakers and was recently appointed to a Democratic leadership position,” he says. “America’s seniors have been looking for “a champion in the mold of the late Rep. Claude Pepper for a very long time, he says, noting that Cicilline “may well be just the person to fill his shoes.”

Fernando Torres-Gil, M.S.W., Ph.D., Director of the Center for Policy Research on Aging at the UCLA Luskin School of Public Affairs, says “The U.S. House Select Committee on Aging was a leading voice for older persons and an aging society and with illustrious champions for the elderly. Claude Pepper and Edward Roybal were examples of congressional leadership on protecting Social Security and enhancing nursing home protections.” As a former staff director of this select committee during the l980s, Torres-Gil remembered how important it was to have this committee “gerontologize” Congressional lawmakers. “It became in its time the largest committee in the Congress with members on both sides of the aisle vying to be appointed to this committee,” he said.

After the elimination of the House Permanent Select Committee on Aging in 1993, a brief effort was undertaken by Rep. Nancy Pelosi (D-California) when she became House Speaker to bring back the Aging panel but this attempt was not successful. It’s time for Pelosi and her Democratic lawmakers to make a full court press to make it happen in 2017.

Cicilline’s legislative efforts to resurrect the House Permanent Select Committee on Aging is in the hands of GOP House Speaker Paul Ryan who controls the chamber. The Washington, DC-based Leadership Council of Aging Organizations, a coalition of 72 national nonprofit aging advocacy groups, could play a key role in advocating for and supporting the Resolution that would establish, once again, a House Select Committee focused on the issues of aging in America.