|
Dear John,
The Social Security and Medicare Trustees released their reports on the status of these programs.
This year’s Social Security Trustees Report shows that the system’s reserves are projected to last until 2034, one year less than what was projected in 2020, in large part due to the impact of the coronavirus pandemic on employment. After 2034, Social Security will have annual revenue sufficient to pay 78% of benefits.
But for many beneficiaries relying on Social Security for most of their income in retirement, this report makes it clear that Congress must act to provide an overdue boost in benefits and ensure the program remains solvent for decades to come.
Of course, the default response from so-called “fiscal hawks” in Congress calling for benefit cuts to address Social Security’s funding shortfall would only be facilitated by Senator Romney’s (UT) TRUST Act, which sets up special committees that could fast-track legislation to do just that. Some will insist that Social Security be privatized, which would gamble workers’ hard-earned retirement benefits on Wall Street.
We also anticipate that fiscal hawks will continue to oppose common sense measures to strengthen Social Security and boost benefits, including U.S. Representative John Larson’s (CT-01) proposal to give all retirees an across-the-board increase, enhanced benefits for the most vulnerable seniors, a more accurate Cost-of-Living Adjustment formula and an adjustment of the payroll wage cap to make the wealthy pay their fair share into the program.
With Democrats in control of the House and Senate, and an advocate for Social Security in the White House, advancing legislation to finally strengthen — and expand — the program for current and future retirees is finally within reach.
What about Medicare? The Trustees of the Medicare program report that the program’s finances remain relatively unchanged from 2020. The Reserves in Medicare’s Part A Trust Fund will become depleted in 2026, at which time the system could still pay 91% of benefits. But this is only if Congress takes no action.
The Trustees estimate that the Medicare Part B premium will rise to $158.50 per month in 2022 — a $10 increase over last year’s. Lawmakers can take action to cut beneficiaries’ out of pocket costs and boost Medicare’s fiscal health by passing a budget reconciliation bill that lowers prescription drug costs and uses the billions of dollars in savings to expand Medicare to cover dental, hearing and vision care.
While opponents of Medicare expansion claim we cannot afford this measure the truth is we simply cannot afford to omit these benefit improvements from Medicare. In fact, providing coverage for dental, hearing and vision care could help keep beneficiaries out of the hospital which will indirectly result in less spending in Medicare Part A.
This moment in history provides perhaps the best opportunity to expand Medicare in the past two decades — and so we must do everything in our power to get Medicare expansion and lower prescription drug costs over the finish line in Congress.
Today, Americans are turning to Social Security and Medicare more than ever. That’s why it’s so important that we work together to strengthen these programs that have been the bedrock of America’s middle and working classes, and resist proposals by those determined to tear them down. Please consider supporting the National Committee’s urgent efforts to protect and strengthen Social Security and Medicare by making a donation in any amount.
Sincerely,
|
2.png "tw"){kind=small}
