Social Security must be key issue in 2024 Presidential Election

Published in RINewsToday on July 17, 2023

Last Wednesday, 178 House Democrats, (90% of the House Democratic caucus) led by Rep. John Larson (D-Conn.) introduced H.R. 4583, the “Social Security 2100 Act of 2023.” The 108-page bill would expand Social Security’s benefits, with no cuts, and keep the system fiscally strong for decades to come. Senator Richard Blumenthal (D-Connecticut) has introduced the companion measure in the upper Chamber.

In May, to drum up support, enthusiasm, and attention for H.R. 4583, Larson, House Ways and Means Social Security Subcommittee Ranking Member, was joined by House Democratic Leader Hakeem Jeffries (D-,New York), Ways and Means Committee Ranking Member Richard Neal (D- Massachusetts) and other House leaders to announce the upcoming introduction of Social Security 2100.

“10,000 Baby Boomers a day become eligible for Social Security, making the point of acting now even more urgent, says Larson. “I am proud to be joined again by a majority of my Democratic colleagues to introduce Social Security 2100, and again, ask my Republican colleagues, whose legislation we’ve included, to join us in helping uplift the 65 million Americans who rely on it. Including lifting 5 million Americans out of poverty, providing 23 million a tax cut, and making sure that Americans are able to get the essential benefits that allow them to pay rent, buy groceries, and fill their prescriptions,” he says.

“It’s important that the Social Security benefits that working Rhode Islanders have earned keep up with the cost of living, and that’s exactly what H.R.4583 – Social Security 2100 Act will accomplish. Unfortunately, extreme Republicans in the House are trying to cut Social Security instead of strengthening it. But I am determined to fight for Rhode Island’s seniors in Congress to ensure they receive the benefits they’ve earned,” says Congressman Seth Magaziner (D-R.I.), a sponsor of the legislative proposal.

H.R. 4583: The Nuts and Bolts

On July 12, 2023, H.R. 4583 was introduced and referred to the House Ways and Means, Education and Labor, and Energy and Commerce Committees, being introduced in the lower chamber that day.

According to a legislative fact sheet, H.R. 4583, the legislative proposal would increase and expand essential benefits to Social Security beneficiaries. Larson’s legislation would:

• Increase benefits 2% across the board for all Social Security beneficiaries for the first time in 52 years.

• Improve the Cost-of-Living Adjustment (COLA), so it reflects the inflation actually experienced by seniors.

• Increase benefits to boost lower income seniors.

• Improve benefits for middle-income widows and widowers from two-income households.

• Restore student benefits up to age 26, for the dependent children of disabled, deceased, or retired workers.

• Increase access to benefits for children living with grandparents or other relatives.

• Repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that currently penalize many public servants.

• End the 5-month waiting period to receive disability benefits.

• Increases benefits by an additional 5% for the most elderly and those who have been receiving disability benefits the longest, those beneficiaries who have been receiving benefits for 15 years or more.

• Provide caregiver credits to ensure that people (mostly women) are not penalized in retirement for taking time out of the workforce to care for children or other dependents.

• End the disability benefit cliff, replacing it with a gradual offset for earnings.

• Cut taxes for 23 million middle-income beneficiaries.

• Correct an unintended flaw in how Social Security benefits are wage-indexed, to prevent benefits from dropping (a “notch”) if the wage index decreases.

• Ensure that these benefits do not result in reduced Supplemental Security Income (SSI) payments or a loss of eligibility for Medicaid or CHIP.

• Combine the Old-Age and Survivors Insurance (OASI) and the Disability Insurance (DI) Trust Funds into one fund to ensure seamless benefit payments.

• Provide the Social Security Administration with resources to improve customer service.

Social Security 2100 Pays for These Benefits by:

• Ensuring millionaires and billionaires pay their fair share by applying FICA to earnings above $400,000.

H.R. 4583 would pay for strengthening the Social Security Trust Fund and pay for the enhanced benefits by having millionaires and billionaires pay their fair share by applying FICA to earnings above $400,000, with those extra earnings counted toward benefits at a reduced rate. The bill closes the loophole of avoiding FICA taxes and receiving a lower rate on investment income by adding an additional 12.4% net investment income tax (NIIT) only for taxpayers making over $400,000.

Social Security advocates call for passage

“By re-introducing his revised Social Security 2100 Act, Congressman John Larson once again defies the media narrative that ‘no one in Washington has the courage’ to address the program’s future,” says Max Richtman, President and CEO, of the Washington, DC-based National Committee to Preserve Social Security and Medicare, noting that the legislation extends the solvency of the Social Security trust fund for decades while also providing American seniors with an expansion of benefits. Larson tackles the funding of the expansion of benefits by asking high earners to begin paying their fair share into the program, says Richtman.

“At a time when House Republicans have proposed cutting benefits by raising the retirement age and other means — Congressman Larson offers a commonsense, fair, and forward-looking plan.

Not only is the Social Security 2100 Act wise policy, but it’s also overwhelmingly popular with voters across the political spectrum,” says Nancy Altman, President of Social Security Works and Chair of the Strengthen Social Security Coalition.

As the debate over Social Security heats up before the 2024 Presidential election, Altman charges that the nation’s media refuses to “take Democratic plans to protect and expand Social Security seriously, and fails to call out Republicans for their unwillingness to state what they are for, not just what they are against.”

“Reporters are implicitly dismissing these bills because they cannot pass the House and Senate without Republican support. Instead of pressuring Congressional Republicans to introduce their own legislation, the mainstream media provides the Republicans with the cover they seek by claiming that both parties are avoiding action on Social Security” says Altman.

According to Altman, earlier this year President Joe Biden used the presidential bully pulpit at the State of the Union address to call out Republicans for their plans to cut Social Security and Medicare, forcing them to take these program cuts off the table during the debt ceiling negotiations. “If Biden champions a plan that expands benefits with no cuts, while requiring those earning over $400,000 to pay more, the mainstream media will be unable to ignore it,” predicts Altman.

Congressional strategies regarding Social Security

On the same day that Larson introduced his legislation, Senator Sheldon Whitehouse (D-R.I.), Chairman of the Senate Budget Committee, held a hearing, “Protecting Social Security for All: Making the Wealthy Pay Their Fair Share,” on his legislation, S. 1174, the Medicare and Social Security Fair Share Act. A companion measure was introduced in the House by Congressman Brendan F. Boyle (D-Pennsylvania), Ranking Member of the House Budget Committee.

At the July 12^th Senate Budget Committee hearing, Whitehouse explained that his legislation would bring enough revenue from the wealthiest to ensure that Social Security benefits will be paid and on time for the next 75 years and beyond.

“Right now, the cap on Social Security contributions means a tech exec making $1 million effectively stops paying into the program at the end of February, while a schoolteacher making far less contributes through every single paycheck all year,” says Whitehouse at the hearing. “That’s not fair, and my Medicare and Social Security Fair Share Act would fix that by requiring contributions to Social Security on wages above $400,000,” said the Rhode Island Senator.

Whitehouse stressed the importance of Social Security to his Rhode Island constituents, by mentioning their comments and thoughts.

“I rely on my Social Security as my only source of income. I would find it impossible to continue to live independently if Social Security were changed, reduced or eliminated. Social Security benefits were a contract between the federal government and its citizens,” said Robert of Pawtucket.

Another Rhode Islander, Antonella of North Providence, said: “I would be very sad and depressed if there were any cuts to Social Security. I just get by as it is.” And Laurel of Pawtucket said that without Social Security, she “would have to go back to work and probably have to work until I die.”

Earlier this Congress, Senators Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.) introduced their own bill, S. 393, the Social Security Expansion Act (Whitehouse is an original cosponsor). The Sanders-Warren bill would expand benefits by $ 2,400 each year while fully funding the program for the next three-quarters of a century and beyond.

As to the GOP position on Social Security, the House Republican Study Committee released a plan to cut Social Security by $718 billion over 10 years. This plan, endorsed by three-fourths of the House GOP Caucus), would also raise the retirement age to 69 (for everyone who is currently 59 and younger), which would effectively cut benefits by an estimated 13 percent every year and especially harm low-income workers. It would also reduce benefits for future beneficiaries who earned a “higher salary” before retirement. Also, only “modest adjustments” to the Social Security program as it operates would be made but it doesn’t clarify the changes.

It is important to note that three fourths of the House GOP caucus endorse the RSC budget, making cuts to Social Security and Medicare.

According to SSW’s Altman, while Democratic proposals (Larson, Whitehouse and the Sanders- Warren proposals) to expand Social Security and Medicare are popular with Democratic, Republican and independent voters, Republican politicians have chosen to not co-sponsor any of these bills.

My final thoughts…

Polls show that Social Security and Medicare, two of the nation’s largest social safety net programs, are extremely popular. According to a poll released in March 2023 by the Associated Press and NORC Center for Public Affairs research, 79% of Americans are opposed to reducing the benefits that Social Security beneficiaries receive. As to raising Social Security’s eligibility age from 67 to 70, 75% of American’s were against it.

Another poll released last March found that nearly 9 in 10 Americans say they oppose reducing spending on Social Security or Medicare, according to polling from Axios.

The Congressional debate on financially shoring up Social Security and expanding benefits is of extreme interest to 66 million older and disabled people (175,840 beneficiaries in Rhode Island), who rely on monthly payments from the program. But the Social Security debate must include America’s younger generations, too.

With 477 days left before the 2024 presidential elections, expanding Social Security and making the program fiscally sound and to ultimately be available to Gen Exers (1965 to 1979), Millennials (1980 to 1994), Gen Z (1995-2012) and Gen Alpha (2013 to 2025) must become a key election issue. Social Security beneficiaries and America’s younger generations must call on Congress to expand Social Security benefits and ensure its fiscal viability for every generation. “Keep Your Hands Off Social Security” must be the powerful message they send to all presidential and congressional candidates before the upcoming 2024 presidential election.

To review the text of Larson’s H.R. 4583, “Social Security 2100: A Sacred Trust Act,” go to https://larson.house.gov/sites/evo-subsites/larson.house.gov/files/evo-media-document/final-2023.07.11-text-of-social-security-2100-act.pdf.

To watch a video of Larson’s May press conference announcing the upcoming introduction of H.R. 4583, the Social Security 2100, go to https://www.youtube.com/watch?v=WO8QYRRQ-UQ.

Here is a copy of RSC’s FY 2024 Budget, Protecting America’s Economic Security https://hern.house.gov/uploadedfiles/202306141135_fy24_rsc_budget_print_final_c.pdf.

Republican Study Committee, Social Security and Medicare

Published in RINewsToday on July 3, 2023

Last month, the Republican Study Committee (RSC) unveiled its 167-page FY 2024 “Protecting America’s Economic Security” budget proposal which calls for balancing the federal budget in seven years, slashes $16.3 trillion in wasteful government spending over ten years, and cuts $5.1 trillion in taxes. During the 118^th Congress (2023 to 2024), 175 House Republican lawmakers from 38 states are RSC members. With over 70 percent of the House Republicans belonging to the RSC, the release of the proposed budget is a dependable indicator of where the chamber’s caucus stands on key legislative priorities.

The RSC annually releases its own budget proposal for the next fiscal year during the time when both House and Senate Budget Committees prepare official budget resolutions. The fiscal blueprint provides the House Republican Caucus with an opportunity to detail its wish list of spending priorities and also provides its position on social issues.

RSC’s FY 2024 budget, released on June 14, 2023, is made up of 220 individual legislative proposals and initiatives received from its members. Reflecting GOP values, the proposed budget would eliminate most funding for new abortion policies, Critical Race Theory, and “gender politics” initiatives, while ensuring adequate funding for the military, continued construction of a Southern border wall; rolling back “climate change” programs, and eliminating increases in funding for the IRS. It would also make 2017 tax cuts permanent as its provisions are starting to expire soon, and ensuring the nation’s energy independence; providing tax benefits to promote R&D: restricting free meals for students, and the Supplemental Nutrition Assistance Program, with the possibility of work/volunteer requirements.

Aging groups are concerned that the RSC budget also takes aim at Social Security and Medicare programs. During 2023, the annual Social Security trust fund report warned that the program will only be able to continue paying out full benefits through 2034. The Medicare trust fund also reported that it could run low on funds by 2028, two years later than reported last year. While the Democratic platform seeks to raise caps on some programs to address this, the RSC’s budget proposal floated additional policies to financially fix these programs.

The RSC budget proposes “modest changes” to benefits for those who are not near full retirement age. For future retirees, it calls for raising the full retirement age (taking into account for increases in life expectancy) from age 67 to age 69 for those who turn 63 in 2033. It would also reduce benefits for future beneficiaries who earned a “higher salary” before retirement. Also, only “modest adjustments” to the Social Security program as it operates would be made but it doesn’t clarify the changes.

As to Medicare, the RSC budget calls for requiring disabled people to wait longer before they can receive Medicare benefits. It pushes for turning Medicare into a “premium support system,” where seniors would receive a subsidy to be used to purchase private health plans competing against traditional Medicare.

Point/Counter Point

With the release of RSC’s budget, House lawmakers, the White House, and aging groups quickly issued statements touting their own positions.

RSC’s Chairman Kevin Hern (R-Ok) noted the GOP’s conservative values could be found on every page of the budget blueprint. “Our budget proves that fiscal responsibility is the only way to lower inflation, grow the economy, cut federal spending, empower taxpayers, and protect small businesses. Congress controls the purse strings, but we, the House, has failed to produce a budget year after year after year. Everyone has to balance their budget – governors, mayors, businesses, families – but not Congress. Nearly every problem facing our government can be traced back to our failure to both pass a budget and stick to it. The Republican Study Committee has a budget, and it balances in just seven years. Our budget is real, and it’s floor-ready. It’s time to get our country back on track,” he said.

“For too long, irresponsible spending habits in Washington have made the cost-of-living more expensive for hardworking American families, and they are fed up with business-as-usual. The RSC budget prioritizes smart, common-sense policy to empower the American worker, and it cuts back on wasteful spending to pay for what’s important – just like families have to do every day. We are committed to protecting our country’s economic security and restoring fiscal sanity to our Nation’s finances,” says RSC Budget and Spending Task Force Ben Cline (R-VA).

On the other hand, Pennsylvania Congressman Brendan F. Boyle, Ranking Member of the House Budget Committee, gives the RSC the thumbs down: “This budget stands in stark contrast to the positive, hopeful vision put forward by President Biden and supported by House Democrats: a government that works for working families, an economy where the ultra-rich pay their fair share, and a country where everyone has the freedom to retire with dignity. I look forward to working with President Biden and Congressional Democrats to ensure House Republicans’ bleak vision for America does not become our reality.”

Social Security and Medicare

Social Security advocacy groups warn that the programs proposed by the RSC would slash the nation’s safety net programs, like Social Security and Medicare.

“This budget would destroy Social Security as we know it. It would raise the retirement age and slash middle class benefits. These changes would transform Social Security from an earned insurance benefit, which replaces wages lost in old age, disability, or death, into a subsistence-level welfare benefit,” warns Nancy Altman, President of Social Security Works.

“The budget fearmongers about Social Security’s modest shortfall (still a decade away) rules out any options for raising revenue, such as requiring billionaires to contribute more. That leaves benefit cuts as the only “solution.” In other words, they want to cut benefits now to avoid cutting them later, which isn’t a solution at all. Indeed, the budget will increase the number of workers who will have no ability to retire while maintaining their standard of living,” says Altman.

“A particularly cruel provision would force disability beneficiaries to wait five long years (instead of the current two, which is already too long) before becoming eligible for Medicare benefits. Outrageously, this change would deprive some of the most medically vulnerable people in America of health care. This provision alone would inevitably lead to more medical bankruptcies and increased homelessness,” notes Altman.

Correcting misinformation on Social Security and Medicare

The Washington, DC-based National Committee to Preserve Social Security and Medicare is launching a new public education campaign — sponsored by AARP — to correct misinformation about Social Security and emphasize the program’s value to American workers, especially to communities of color. The campaign, “Social Security: Here Today, Here Tomorrow,” is intended to debunk myths and give workers the facts about their vital earned benefits. The campaign includes a series of public town halls across the U.S. between June and October, 2023, featuring prominent Social Security experts and advocates, Social Security officials, and financial advisors.

Max Richtman, President and CEO of the National Committee to Protected Social Security and Medicare says, “There is a ‘doom and gloom’ narrative about Social Security today. ‘The program is going bankrupt.’ ‘It won’t be there for future generations.’ ‘Politicians are stealing from Social Security.’ None of that is true. We want the public to understand that Social Security is there for them today — and it will be there for them tomorrow. And not just in retirement, but in case of disability, the death of a family breadwinner, or the retirement of a spouse. That’s what this campaign is all about.” Richtman will moderate some of the upcoming town halls.

“Social Security is a financial lifeline to millions of American seniors, but it is especially crucial to the Black community. Black Americans traditionally rely on Social Security for monthly income more than other groups do, due to wage and job discrimination, diminishing employer-provided pensions, and challenges in saving for retirement. “Like all Americans, the Black community pays into Social Security with every paycheck — and deserves to know that the government will keep its promise to provide baseline financial security when they encounter what President Franklin Roosevelt called ‘the hazards and vicissitudes’ of life,” says Richtman.

Here is a schedule of the town halls. Admission is free. Reservations are required.

Philadelphia, PA, July 26, 2023 at Center In The Park

Lansing, MI, August 28, 2023 at AARP Michigan Office (To be televised later on WLAJ-TV/ABC)

Milwaukee, WI, September, 2023 (date & location TBA)

Las Vegas, NV, October, 2023 (date & location TBA)

Visit www.socialsecurityheretoday.org for registration information. Those unable to attend the free town halls in person will be able to watch live video streams.

Here is the text for the RSC’s FY 2024 Budget, Protecting America’s Economic Security: https://hern.house.govPuploadedfiles/202306141135_fy24_rsc_budget_print_final_c.pdf

House GOP leadership is committed to holding a vote to approve the RSC budget this year. With a razor thin majority in the House and with Democrats stringing opposing, the RSC budget is unlikely to pass the lower chamber.

In an interview with House Speaker Kevin McCarthy that aired Sunday, Jan. 29, 2023, on “Face the Nation,” McCarthy stated, “Medicare and Medicaid slashes are off the table.” But with three fourths of the House GOP caucus endorsing the RSC budget, making cuts to Social Security and Medicare, older voters must make it clear to their House lawmaker, “Don’t touch Social Security and Medicare.”

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.