We Need Congress to Step Up and Fix Social Security, Medicare

Published in Woonsocket Call on July 3, 2016

Expect the nation’s Social Security program to be fully funded for nearly two decades, and Medicare’s solvency to continue courtesy of health care reforms. Social Security beneficiaries may even get a very small .2 percent cost of living (COLA) adjustment next year but will get wacked with a Medicare premium increase. These facts are reported in the recently leased 262 page report issued by the Trustees of the Social Security and Medicare funds, transmitted to Congress and President Obama. This is the 76th report issued by the Trustees that financially reviews these two of the nation’s largest entitlement programs.

This 2016 Trustee Report, released on Jun 22, should be of interest to Rhode Island’s retirees who receive checks from Social Security, According to AARP, 153,349 Rhode Islanders received Social Security checks as of the end of 2014. Also, 22 percent of Rhode Island retirees depend on their Social Security check for 90 percent or more of their income. Their average benefit is $1,341 per month.
The Devils in the Details

The recently released 2016 Trustees Report notes there is now $2.81 trillion in the Social Security Trust Fund, which is $23 billion more than last year and that it will continue to grow by payroll contributions and interest on the Trust Fund’s assets.

Meanwhile, Social Security remains well-funded. In 2016, as the economy continues to improve, Social Security’s total income is projected to exceed its expenses. In fact, the Trustees estimate that total annual income will exceed program obligations until 2020.

The Trustees say that Social Security will be able to pay full benefits until the year 2034, the same as projected in last year’s Report. After that, Social Security will still have sufficient revenue to pay about 79% of benefits if no changes are made to the program.

Although the Trustees project a .2% Cost of Living Adjustment increase, retirees will be hit with a premium increase next year. Medicare Part B premiums are projected to increase by only a very small amount for about 70 percent of beneficiaries in 2017 from $104.90 to $107.60. The standard monthly premium is projected to increase from $121.80 to $149.00 while the annual deductible is projected to increase from $166 to $204 for all beneficiaries.

The Trustees peg Medicare solvency to the passage of healthcare reform, with the program paying full benefits until 2028, 11 years later than was projected prior to passage of the Affordable Care Act. However, this is two years earlier than projected in 2015.

Congress Must Step to the Plate

Responding to the Social Security Trustees report, recently released report, AARP CEO Jo Ann Jenkins, said, “While the Trustees once again report that the combined Old Age, Survivor and Disability Insurance Trust can pay full retirement, survivor and disability benefits for some time, we know that if no action is taken, benefits could be cut by nearly 25 percent in 2034, and families could lose up to $10,000 per year in benefits.”

“Social Security remains a critical part of the fabric of our lives to protect us from both expected and unexpected challenge,” says Jenkins.

Jenkins calls on Presidential candidates and those running for Congress and the Senate to make a commitment to strengthening Social Security and outline their plans for the fix. “Throughout the 2016 election, we’ll continue to push candidates to take action if elected,” she says.

As to Medicare, Jenkins adds, “This year’s Medicare Trustees report reinforces the recent progress that has been made through greater Medicare savings and lower costs per enrollee. The report also highlights the financial challenges that continue to face the Medicare program, which is projected to provide critical health coverage to 64 million Americans by 2020.”

“A typical senior today has an annual income of just under $25,000 and pays roughly one out of every six dollars of this in out-of-pocket health care costs. The more than 55 million older Americans who today depend on Medicare for guaranteed, affordable health coverage simply cannot afford more than they already pay,” says Jenkins.

The Solution Could Be Simple

Jenkins urges Congress to make simple solutions to bring stability to the nation’s Medicare program. She suggests Congress find ways to reduce high prescription drug costs, improve the nation’s health care outcomes, eliminate unnecessary diagnostic testing, curb excess paperwork, and identify waste and fraud in the program.

Adds, Max Richtman, President/CEO of the National Committee to Preserve Social Security and Medicare, “What’s likely to be missing in headlines about today’s Social Security Trustees Report is that the program remains well-funded with total income, again, projected to exceed expenses. However, in order to head off a benefit cut in 2034 Washington should embrace the growing movement to lift the payroll tax cap and expand benefits for the millions of seniors struggling to get by on an average $1,300 retirement benefit.

The Trustees also project a tiny .2% cost of living adjustment next year yet Medicare premiums will increase in 2017, says Richtman. “Seniors continue to see their modest Social Security benefits eaten away by growing healthcare costs which illustrates, once again, that the current Social Security COLA formula isn’t accurately measuring seniors’ expenses. Congress needs to adopt a fully developed CPI for the elderly (CPI-E) and begin work on the many Social Security expansion bills now languishing in the House and Senate,” he adds.

This [Trustee’s] report reinforces the importance of ensuring that Social Security and Medicare are preserved and guaranteed, especially for working and middle class Rhode Islanders,” said Rep. David Cicilline (D-Rhode Island) who is a co-sponsor of the Protecting and Preserving Social Security Act. “Reasonable measures, such as raising the cap on high-income contributions, should be considered by Congress to extend the solvency of these programs. I will continue to advocate for commonsense legislation that strengthens benefits for working families and ensures the long-term stability of Social Security and Medicare,” he says.

RI. Reps Protect Social Security

Like Cicilline, Rep. Jim Langevin and Democratic Senators Jack Reed (D and Sheldon Whitehouse both view Social Security as an earned benefit and the primary source of income to millions of retirees that must be protected. The Rhode Island Congressional Delegation has fought off Republican efforts to privatize Social Security and have supported legislation to strengthen this program and Medicare.

It is very clear to aging advocates and to the Trustees of the Social Security and Medicare trust funds that the next President and Congress put political differences aside to make legislative fixes to strengthen and ensure the long-term stability of Social Security and Medicare.

The Trustees say this very clearly in their report, “Lawmakers have many policy options that would reduce or eliminate the long-term financing shortfalls in Social Security and Medicare. Lawmakers should address these financial challenges as soon as possible. Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.”

Political compromise will be the way to hammer out Social Security and Medicare reforms. When the dust is settled after the upcoming November president elections hopefully this message was delivered at the ballet box.

Retooling America’s Manufacturing Sector

Published in Pawtucket Times, February 15, 2013

Over 50 years ago, you could hear the humming of the machines coming from Rhode Island’s factories.  The piercing sound of factory whistles would rip through the surrounding neighborhood, alerting all that a shift was ending and the next would soon begin.  

Weaving cotton into textiles came from mills scattered throughout northern Rhode Island which translated into work opportunities for all.  Traveling from the City of Providence, the CapitalCity to the City of Pawtucket, the birthplace of the nation’s Industrial Revolution, through Central Falls and up through the City of Woonsocket, you will discover that once we were the hub for the manufacturing of fabric for the nation’s second world war effort. For those factories filling three shifts, meant thousands of workers working in these mills, giving them a place to earn an honorable living. Blue collar workers fueled the nation’s economy as they bought homes, automobiles, as well as providing the  resources to send their children to colleges and universities. “Made in America” was a lifestyle and we were proud of it. 

Today, there is silence in many of these mills and for many of them, a new identity as these same factories have been transformed into artist lofts and studios or renovated for condo living.    For those factories still in operation, many of these manufacturers have decreased the number of shifts, thus reducing their workforce and ultimately impacting many of the local small businesses, leading to closures because of lack of customers.  Simply put, it’s the domino affect and the last piece might fall without Congressional action.   

Manufacturing Goes Over Seas

Over this decade, America’s manufacturing sector has crumbled giving way to China and third world countries to pick up the ball.  Drastically lower wages enable Chinese manufacturers to make cheaper goods sold to consumers for less then it would cost for the items to be made by an American-based manufacturing company. Along with lower wages, Chinese manufacturers face less environmental and safety regulations, taxes and have subsidized operational costs.  Imbalanced trade agreements are not favorable to American manufacturers who are losing the “economic race”, thus resulting in a loss of profits and employee lay offs.  Many of the nation’s manufacturers are being forced out of business, permanently closing their doors in cities and towns throughout this nation.       

A shopping trip always leaves me very unsettled about the flood of cheap imported productions into our nation.  Lower price tags on goods made outside of this country are enticing, but how often is quality been sacrificed for price?  We’ve  become a country of ‘mediocraty’ where its “good enough”.  Imported products ultimately impacts America’s children, who are now less likely to experience the prosperity that their parents once achieved because of the country’s manufacturing economy, which has now begun to falter and tilt to a service economy.     

Shelves of big box stores are packed with electronics and appliances, with most of these items stamped “Made in China.” Your local department store filled with discount bins and clothing racks are certainly not immune from this labeling.  The next time you are shopping, examine the country of origin for that product you are holding.  You guessed it, clothing, dishes, pots and pans, picture frames, all made from Chinese manufacturing companies. 

 Manufacturing Plants Sitting Idle

 As America’s manufacturing sector is decimated by the Chinese along with our communities losing higher paying manufacturing jobs, only lower paying service sector jobs will become available to low and middle income Americans. US Bureau of Labor Statistics 2011 Quarterly Census of Employment and Wages show that the average Rhode Island manufacturing job pays $50,823 annually and that there are currently 40,341 employees directly related to manufacturing. Six years ago, over 52,000 Rhode Islanders worked in the manufacturing sector.

Currently, cities and towns now see manufacturing plants sitting idle and empty or underutilized, often times reducing their tax base. This continued trend will not allow for a balanced economy.  Rhode Island can ill afford to lose its existing manufacturing base, ultimately thousands of people to the state’s unemployment statistics.

 

 Once upon a time, “Made in America” stamped on products gave the buyer an assurance of quality.  Government recalls protected our citizens from products that might harm or kill.  As we are increasingly aware, “Made in China” does not always ensure quality (such as pharmaceuticals, tooth paste and defective tires) because of poor Chinese governmental oversight.  In 2007, newspapers reported that some exported toys “Made in China” were produced with high levels of lead paint, being sent to tens of thousands of toy stores throughout the nation, putting our nation’s children at risk. At this time, even lack of product quality control even allowed poisoned pet food manufactured by Chinese companies to be shipped to America, killing thousands of cats and dogs.   

 Resuscitating the Nation’s Manufacturing Sector

With the kickoff of the 113th Congressional Session last month, it is crucial that the Democratic and Republican politicians thoroughly debate this nation’s trade policies and come up with viable bipartisan solutions to reenergizing America’s manufacturing sector.

Most importantly, what steps will President Barrack H. Obama working with a divided Congress take to ensure that American well-paying jobs do not vanish in the global economy?   On Tuesday evening, the President, addressing a joint session of Congress, gave us some clues in his State of the Union speech about retooling America’s manufacturing sector. 

Although the President touched on immigration reform and border security, early child education, clean energy technologies, the war in Afghanistan, and confronting gun violence, he called for fixing the nation’s aging infrastructure, along with launching manufacturing hubs, where businesses partner with the Department of Defense and Energy, to create high tech-jobs.  He looked to Congress to create a network of 15 of these hubs to “guarantee that the next revolution in manufacturing is “Made in America.”   If Congress blocks this economic initiative the defiant President plans to use executive orders to create three hubs on his own.

Meanwhile, redesigning the nation’s high schools to enable graduates to meet the demands of a high-tech economy can only help manufacturing companies, the noted President Obama.  Schools would be rewarded to develop partnerships with colleges and employers to create classes that teach science, technology, engineering and math skills needed by the nation’s manufacturing sector, he said.

In the Ocean State, as part of his ongoing work to jump start Rhode Island’s economy back, U.S. Rep. David N. Cicilline (D-RI)  at North East Knitting Company in Pawtucket, unveiled another version of his Make It In America Manufacturing Act to target federal investment in manufacturing, helping create jobs, generate public-private partnerships, and support small business growth. (This legislative proposal is similar to one that he introduced two years ago.)

“When they’re competing on a level playing field, American workers outperform competitors across the world,” said Cicilline. Noting that Rhode Island’s economy was built on the strength of its manufacturing industry, the Congressman who represents the 1st Congressional District, tapping into feedback from his Ocean State constituents and the Brookings Institution, crafted the legislative proposal to give manufacturer the resources needed to compete successfully, grow jobs, and get the state and national economy moving again.

Senator Kirsten Gillibrand (D-NY), has introduced the companion measure in the Senate.  If signed into law, Cicilline’s Make It In America Manufacturing Act would create a competitive incentive grant program, jointly administered through the Departments of Labor and Commerce. States or regional partnerships may apply for the program, and successful applicants will receive grant funds to help implement innovative Manufacturing Enhancement Strategies. 

Meanwhile, funds can be used to create a revolving loan fund, to issue low interest loans to manufacturers, or to provide grants to non-profits, including community colleges, helping manufacturers to address the skills gap that hinders growth in the manufacturing sector.  The loan funds could also be used to increase exports and domestic supply chain opportunities, improve energy efficiency.  Also, the loans could be used to retool and expand existing manufacturing facilities to compete in the 21st century economy.

Seeking a Bipartisan Compromise

The clocks cannot be turned back.  The global economy is here to stay.  Clearly, Congressional gridlock must end by federal lawmakers seeking legislative solutions to making the nation’s manufacturing sector more competitive in a global economy.  Democratic and GOP lawmakers must hammer out bipartisan solutions to enable the nation’s manufacturing companies to fairly compete worldwide and to ensure that trade polices are balanced and fair for all.  

Many of President Obama’s repackaged proposals (reintroduced in his hour long State of the Union speech) and even Cicilline’s manufacturing proposal were derailed in the last Congress in a Republican-controlled House, where GOP Tea Party members practiced anti-compromise politics.  It becomes crucial for the President’s legislative agenda along with Cicilline’s Make It In America Manufacturing Act, to not be bottled up in the House but truly debated.

With the dust settling from November’s elections, the America public has sent both the President and Congress a strong, clear message that is: work together to fix the nation’s sagging economy. Do the people’s work and leave your political bickering outside the House and Senate Chambers.  Compromise and keep manufacturing in America.

Herb Weiss, LRI ’12, is a freelance writer covering aging, health care and medical, even business issues. He can be reached at hweissri@aol.com

 

           

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Defining Brendan Doherty: Romney Republican or Moderate

 Published September 28, 2012, Pawtucket Times

            With the upcoming November election just six weeks away, Republican Candidate Brendan Doherty held a news conference last Tuesday at Memorial, attempting to distance himself from House GOP leadership and from Mitt Romney, the Republican Party’s anointed Presidential candidate.

Surrounded by a backdrop of the 294 bed CommunityHospital in Pawtucket’s East Riverview Neighborhood, Doherty, the GOP challenger to Democratic Rep. David Cicilline, came before seniors and supporters to do political damage control, with an agenda to set the public record straight about his positions on Social Security, Medicare, and Medicaid.

Keeping Social Security, Medicare off the Chopping Block

Charging that Cicilline was misleading to voters on his positions on the nation’s most popular domestic programs, the Republican Candidate pledged his opposition to “privatization” of the nation’s Social Security Program, calling for Congress to keep the Social Security and Medicare programs off the budgetary chopping block.  The former state police superintendent, looking to become Rhode Island’s newest Congressman for the First Congressional District, also supported increased benefits for seniors already enrolled in the Social Security Program.

At the morning news conference, Doherty warned that he has no “secret plan” to cut Social Security and Medicare, as Cicilline charges.  He chastised the Freshman Congressman and his Democratic political operatives for using scare tactics and misleading political rhetoric to fuel a misinformation campaign to link him to Republican Presidential Candidate, Mitt Romney and his running mate, Rep. Paul Ryan’s support for a Medicare voucher program.  Doherty stated that a voucher system would shift healthier Americans to private insurance plans and leave the sickest and frailest American’s in a weakened version of traditional Medicare.

Putting the Spot Light on Fraud and Waste

Doherty, calling himself an “independent thinker” a “centrist” who pledged to reach across the aisle to House Democrats, to pass legislation that would root out fraud and abuse in Medicare and Medicaid.  He noted that a new RAND Corporation study showed that fraud and waste in these two programs may be as high as $98 billion.

“While Congressman Cicilline often speaks of his commitment to protect Medicare from any possibility of budget cuts, he failed to take this common sense action to address the fraud, waste and abuse that accounts for at least $48 billion being diverted every year from the Medicare program and taken away from our seniors who depend on the Medicare program,” commented Doherty.

Doherty, however, looks to push for the Medicare and Medicaid Fighting Fraud and Abuse to Save Taxpayers’ Dollars Act or the Medicare Fast Act (H.R. 3399), as types of legislative proposals he could support if he were elected to Congress.

Cicilline did not mince his words after Doherty’s news conference by continuing to tie his Republican challenger to the Radical Republicans who control the House.  He charged that “My Republican opponent supports raising the retirement age for Social Security and if he got to Congress, would vote to keep the Republicans in control of the House where they would continue to push an extreme agenda that would end the guarantee of Medicare and turn it into a voucher system.”

According to the Democratic Congressman, the Preserving Our Promise to Seniors Act, whish he is a cosponsor, is the best way to extend the life of Social Security Program along with improving the Cost of Living Adjustment formula to give beneficiaries an adjustment based on the cost of goods and services that they regularly purchased.  The Democratic Congressman also opposed the raising the Social Security eligibility age or any effort to privatize the system, these changes supported by many GOP lawmakers.

Responding to the news conference, the Rhode Island Democratic Party issued a release calling Doherty’s pledge to preserve Social Security and Medicare “an empty one,” given the Republican House Leaderships efforts to slash funding for these programs for years.

Countering Doherty’s attempt to label himself a moderate, Bill Fischer, spokesperson for the RI Democratic Party called Cicilline’s Republican opponent a “Romney Republican who has clearly stated he would repeal the Affordable Care Act; raise the eligibility age on Social Security; and will vote for Republican control in Congress.”

“If Doherty were serious about protecting seniors, he wouldn’t be calling for the repeal of our historic healthcare reform,” Fischer said. “Maybe he doesn’t understand the enormous benefits Rhode Island seniors have already received since its passage. Thanks to President Obama’s Affordable Care Act, 128,390 people on Medicare in Rhode Island have access to preventative health care services, such as colonoscopies and mammograms.

In Rhode Island’s First Congressional District alone, 7,300 seniors have saved over $4 million on prescription drugs because the Affordable Care Act closed the donut hole.”

TV Spot Ties Doherty to Radical Republicans

             With Doherty’s effort to distance himself from the Washington Republican agenda, Cicilline’s campaign released a new television spot, entitled “Fantastic,” to more firmly politically tie his Republican challenger to the Romney-Ryan agenda in Washington.

“At the end of the day, Brendan Doherty wants Republicans in control of Congress and Mitt Romney setting the agenda in the White House. In fact, he thinks Romney would “be fantastic for Rhode Island,’” said Cicilline campaign manager Eric Hyers, detailing the spot..

“Rhode Islanders will have a clear choice this November between re-electing President Obama and Congressman Cicilline so we can get our state back on the right track, or voting for Mitt Romney, Brendan Doherty, and the Washington Republicans who got us into this mess to begin with.”

In the 30 second spot, Doherty emphasizes his support for Romney at a March 3, 2012 candidate forum, saying, “I think he’d be fantastic for Rhode Island.”

In January 2012, Doherty formally endorsed Romney for President, describing him as a “proven leader.”  In the same month, Doherty traveled to New Hampshire to campaign for Romney and was later introduced to the Republican presidential nominee by former Rhode Island Governor Don Carcieri.

The political spot also outlines areas where Romney and Doherty agree on policy – including their support for repealing President Obama’s historic health care reform law, as well as their mutual opposition to reproductive freedoms for women and the Buffett Rule that would require millionaires to pay at least the same tax rate as the middle class.

As the Dust Settles…

Here are questions that voters in Congressional District 1 must ask themselves before they enter the polls in the November election:

Can Doherty successfully repackage himself as a moderate Republican?  If so, with a Republican-controlled House, captured by a radical Tea Party who philosophically opposes political compromise, as a moderate Republican will he vote for  Democratic initiatives that the majority of his Democratic constituents support.  Or can he stand the “heat in the kitchen” and vote against his House Republican leadership.

Can the voters forgive the former Providence Mayor, now their Congressman, for his statements made about the fiscal health of his City as he left office?  If so, they must determine if it is more important to keep this seat Democratic, in hopes of bringing the political party back to power in that Chamber.

With the November election looming, the Cicilline-Doherty political battle, truly becomes the classic “He said, She said,” debate, with the voters ultimately finding out the truth in the New Congress.

Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues.