CBO: Republican Tax Law Will Trigger Medicare Cuts Unless Congress Acts

The recently passed Republican tax and budget law will automatically slash $491 billion from Medicare between 2027 and 2034 unless Congress takes action, according to a new report from the Congressional Budget Office.

Payments to all Medicare providers, prescription drug, and Medicare Advantage plans will be cut by four percent and some providers will likely limit services for Medicare beneficiaries or even stop treating Medicare patients altogether if funding is not restored. 

Congress would have to waive the Pay-As-You-Go (PAYGO) budget rule, which requires lawmakers to implement across-the-board cuts when the federal deficit reaches a certain threshold, in order to prevent severe cuts in Medicare funding. The Republican tax law will increase the federal deficit by at least $3 trillion. 

“Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts — and they did it anyway,” said House Budget Committee Ranking Member Rep. Brendan Boyle (PA) in a statement. “American families simply cannot afford Donald Trump’s attacks on Medicare, Medicaid, and Obamacare.”

The Republican budget law also weakens Medicare drug price negotiation, gives a $5 billion windfall to the pharmaceutical industry, and speeds up Medicare’s insolvency date by a year, decreasing it from 2033 to 2032. 

“If this isn’t fixed, the consequences for seniors will be dire. Medicare beneficiaries can’t afford to pay more for prescription drugs or lose critical health care services because Congress refuses to act,” said Robert Roach, Jr., President of the Alliance. “Please urge your representatives and senators to stop these cuts before they affect everyone’s care.”

ACTION NEEDED: Click here to tell members of Congress to pass legislation that waives PAYGO rules as soon as possible.

President Trump Renews Attacks on Voting by Mail

On Monday, President Donald Trump announced on social media that he plans to revive efforts to get rid of mail-in voting, saying that he will sign an executive order to prohibit mail-in ballots and some voting machines. He also continued to spread misinformation about voting, falsely claiming that the United States is the only country that uses mail-in voting.

White House Press Secretary Karoline Leavitt later walked back the president’s comments, suggesting that the Administration would pursue a legislative path on mail-in voting rather than an executive order. Such an overhaul would spur an uphill legal battle, since the U.S. Constitution only allows states to set voting requirements – including policies related to voting by mail.

“Seniors should be able to exercise their right to vote in the manner that works best for them. They should not have to jump through unnecessary hoops in order to cast their ballots,” said Richard Fiesta, Executive Director of the Alliance. “Eliminating or restricting mail-in voting will not make elections more secure – it will just cause chaos and make it harder for older and vulnerable Americans to vote. The Alliance has led the charge to protect voting rights, both via advocacy and lawsuits in court, and we are prepared to fight this latest attack.”

Elder Fraud Scams Are Growing More Complex and Digital

A recent study shows that scammers are becoming increasingly sophisticated with their tactics, resulting in more complex and tailored approaches crafted to fit victims’ personal data and circumstances. Scammers are also making initial contacts via digital platforms more frequently, including social media sites like Facebook.

Phone calls, email, and social media are the most common channels for scammers to use to initially contact victims, with phone calls accounting for 20 percent of traditional media scams and email and social media accounting for 19 and 21 percent of digital media scams respectively. 

The study indicated that fake eCommerce scams are of particular concern for older generations. Seniors are three times more likely to be impacted by eCommerce fraud initiated via online platforms and digital marketplaces.

Scams are also becoming more international in scope. In one instance, a group of thirteen scammers based in the Dominican Republic were charged with running a call center that defrauded 400 seniors across the U.S., resulting in a total loss of more than $5 million. The fraudsters tricked victims into giving them money by pretending that their grandchildren or other close family members were in danger, engaging in a more complex version of the “grandparent scam.”

“If a deal seems ‘too good to be true,’ it generally is,” said Joseph Peters, Jr., Secretary-Treasurer of the Alliance. “Legitimate business representatives will not contact consumers out of the blue. Seniors and their loved ones can help stop scammers in their tracks by researching online sellers and sticking with trusted retailers when shopping online.”

KFF Health News: Breaking Down Why Medicare Part D Premiums Are Likely To Go Up
By Julie Appleby

Medicare enrollees who buy the optional Part D drug benefit may see substantial premium price hikes — potentially up to $50 a month — when they shop for next year’s coverage.

Such drug plans are used by millions of people who enroll in what is called original Medicare, the classic federal government program that began in 1965 and added a drug benefit only in 2006. The drug plans are offered through private insurers, and enrollees must pay monthly premiums.

It’s not known whether insurers will pursue the maximum increase allowed, as premium prices for next year won’t be revealed until closer to open enrollment, which starts Oct. 15.

Read more here.

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