PRESIDENT'S FORUM

by Bill Kadereit, President, NRLN

We are committed to keeping you informed about your retiree benefits, pension funds, medical and drug costs and the truth about Medical Advantage Plans. This column features a current topic on these issues.

Trustees’ 2021 Reports on Social Security and Medicare

The Trustees for Social Security and Medicare released their 2021 reports on August 31. In recent years the reports had been released in April. Apparently, more time was needed to compile the reports to include the effects of the COVID-19 pandemic, the associated recession and projected outlook for the programs.

Social Security Report

This year the total annual cost of Social Security is projected to exceed the program’s total annual income, for the first time since 1982 and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2021. Social Security’s cost has exceeded its non-interest income since 2010.

The Trustees projected the Social Security Old-Age and Survivors Insurance (OASI) trust fund will deplete its reserves by 2033, one year sooner than last year’s estimate, with 76 percent of benefits payable at that time. The Social Security Disability Insurance (SSDI) trust fund will become insolvent by 2057, eight years earlier than last year’s estimate, with 91 percent of benefits still payable.

The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – one year earlier than last year’s projection. At that time, there would be sufficient income coming in to pay 78 percent of scheduled benefits.

“The Trustees’ projections in this year’s report include the best estimates of the effects of the COVID-19 pandemic on the Social Security program,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “The pandemic and its economic impact have had an effect on Social Security’s Trust Funds, and the future course of the pandemic is still uncertain.”

Social Security makes payments to 65 million beneficiaries and 176 million workers pay into Social Security through payroll taxes.

Medicare Report

According to the Trustees, Medicare Part A (inpatient hospital services) is expected it to run cash deficits in 2021 and every year after until it is exhausted in 2026. At that time provider and insurer payments would have to be cut by 9 percent to bring spending in line with revenue. This Hospital Insurance (HI) trust fund has not been this close to projected insolvency since 1997, when depletion was projected to be just four years away and it forced Congress to take some corrective actions.

The Supplemental Medical Insurance (SMI) Trust Fund has two accounts: Part B, which pays for physician and outpatient services, and Part D, which covers prescription drug benefits. SMI is adequately financed into the indefinite future because current law provides financing from general revenues and beneficiary premiums each year to meet the next year’s expected costs. Due to these funding provisions, the rapid growth of SMI costs will place steadily increasing demands on both taxpayers and beneficiaries. The Medicare Part B monthly premium, paid by all Medicare and Medicare Advantage enrollees, is $148.50 in 2021.

Medicare covers 62.6 million people: 54.1 million aged 65 and older, and 8.5 million disabled. About 40 percent of these beneficiaries have chosen to enroll in Part C, Medicare Advantage (MA) private health plans that contract with Medicare to provide Part A and Part B health services and most plans offer taxpayer funded special benefits that are denied to original Medicare enrollees. Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure said the Medicare trust fund solvency is incredibly important and CMS is committed to working with Congress to continue building a sustainable Medicare program.

NRLN on Social Security

The NRLN was in contact with the Legislative Director for House Subcommittee on Social Security Chairman John Larson (CT-01) who introduced the Social Security 2100 Act in the 116th Congress. We learned that Representative Larson is gathering original cosponsors so when he introduces the Social Security 2100 Act in the current 117th Congress there will have more than 100 cosponsors.

The NRLN will again lobby for the passage of the Social Security 2100 Act after it is reintroduced. We anticipate the Social Security 2100 Act will again ensure funding the program for the next 75 years and change the Cost-of-Living Adjustment (COLA) from the current CPI-W pegged to urban wage earners’ living expenses to CPI-E (Elderly) based on older Americans’ spending patterns, including medical costs.

NRLN on Medicare

The NRLN is in the early stages of advocating legislation to add a low out-of-pocket cap to original Medicare. Far too many seniors in original Medicare are forced to go without critical health care because they cannot afford the out-of-pocket costs. With this additional benefit, original Medicare would be on a more level playing field with Medicare Advantage plans which are required to have an out-of-pocket cap.

We also advocate leveling the playing field with Medicare Advantage by providing original Medicare participants the same special benefits. Joe Namath and other MA commercials refer to drug plan, dental, hearing, and eye care special benefits as “free” benefits. Today, over 30 million on original Medicare who are not in Medicare Advantage plans are cheated out of these “free” benefits, though they and other Americans have to pay for them when paying income taxes. Tax subsidies, paid directly to insurance companies are used to buy these “free” benefits.

An NRLN Action Alert was issued on July 19, 2021, in support of H.R.3, Elijah E. Cummings Lower Drug Costs Now Act, and S.833, Empowering Medicare Seniors to Negotiate Drug Prices Act of 2021. Enacting either bill would allow Medicare to negotiate lower prescription drug prices. In addition, H.R.3 would cap seniors’ out-of-pocket costs for prescription drugs at $2,000 per year.

On August 24, House Democrats passed a $3.5 trillion budget framework that would include dental, vision and hearing benefits for Medicare. Senate Majority Leader Chuck Schumer (NY) has included these benefits in his outline of the Senate budget bill. If a budget is enacted that includes these benefits it would fill a major Medicare gap in coverage. Of course, the NRLN is concerned about how Congress would pay for these benefits given the financial status of Medicare noted above in the Medicare Trustees’ Report.

Remember, Seniors Are Special!

Bill Kadereit, President
National Retiree Legislative Network

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Enact Medicare Multi-Cancer Early Detection Screening Coverage

Early detection of cancer through screening saves lives. Click the link below to urge your Representative and Senators to enact the Medicare Multi-Cancer Early Detection Screening Coverage Act of 2021. This bill would create a covered benefit for multi-cancer early detection screening tests to ensure Medicare beneficiaries have access to these tests without unnecessary delay once approved under the Federal Food, Drug, and Cosmetic Act (FDA).

Early detection of cancer through screening saves lives.

Medicare Out-of-Pocket Cap Survey Results Narrative

On August 25 the NRLN closed its survey which opened on July 13. The purpose of the survey was to collect information on what NRLN members over age 55 pay for healthcare under the coverages of their various insurance plan types; how healthcare costs affect their economic stability, and to assess their interest in adding an out-of-pocket cap to original Medicare – would it help them meet financial obligations.

There were 3,312 survey participants. Their responses to questions showed they mainly rely on original Medicare and a private supplement plan (Medigap) or a Medicare Advantage plan for healthcare but costs are eating way their fixed income.

The participants in the survey were from all 50 states. They retired from 161 companies or public entities. Ages of responders ranged from 55 to over 85 with and the average age of 78.

Bill Kadereit, President
National Retiree Legislative Network

Click button below to read a narrative of the survey results.

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PHARMA CONTRIBUTIONS TO CONGRESS

How much did your U.S. Representatives and Senators take as campaign contributions from the Pharmaceutical and Health Products Industry for their recent election campaigns and the current 2019-20 one? Could this be a reason why bills to reduce the price of prescription drugs are not being passed?

To see data that the NRLN has compiled from OpenSecrets.Org, Center for Responsive Politics, CLICK THE BUTTON BELOW.

All Senators and Representatives are now shown by state and amount for ease of reviewing your state’s delegation.

AmazonSmile Program to Benefit the American Retirees Education Program (AREF)

The NRLN board created the American Retiree Education Foundation (AREF) in 2014 as a 501(c)(3) tax-deductible, nonprofit education foundation to expand the research and educational reach of the NRLN and to enable NRLN to sharpen its focus as an organization lobbying for the passage of federal legislation and regulations that benefit retirees.

For example, the white paper on Protecting Pension Assets which is used to educate members of Congress on the need for legislation to prevent pension plan sponsors from using plan assets for non-pension expenses was funded by AREF. Access the white paper here.

You can help fund the AREF without costing you anything extra when you make a purchase online from Amazon through its AmazonSmile program. 

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In the News

The articles and opinion pieces below are for information and are not necessarily a reflection of the NRLN’s position on issues.

The NRLN is nonpartisan and its positions on retirement issues are presented in its Legislative Agenda and white papers that can be accessed from the Legislative Agenda tab HERE.

Democrats pitch industry-friendly Medicaid workaround to win Minchin’s support By Alice Miranda Ollstein; Politico ~ Oct 26, 2021

Congress has a new plan to fix Social Security. How it would change benefits By Lorie Konish; CNBC ~ Oct 26, 2021

What’s In, What’s Out? Democrats Slash Programs To Near Spending Deal  Via KHN Morning Briefing; Kaiser Health News ~  Oct 25, 2021

Manchin shutting down Sanders on Medicare expansion By Alexander Bolton; The Hill ~ Oct 25, 2021

Medicare Mistakes You Need To AvoidFrom Bob Carlson; Forbes  ~ Oct 25, 2021

Inside PhRMA’s fight to kill Democrats’ drug pricing plan By Theodoric Meyer & Jacqueline Alemany; The Washington Post ~ Oct 25, 2021

EXPLAINER: What’s a ‘wealth tax’ and how would it work?  By Josh Boak; The Associated Press ~ Oct 25, 2021

Billionaire tax takes shape as Biden pushes for budget deal By Lisa Mascaro & Darlene Superville ; The Associated Press ~ Oct 25, 2021

Medicare Advantage is cheaper for a reason — beware By Carla Fried, Seattle Times – Oct 23, 2021

What’s in, and what’s out, as Democrats reshape Biden bill By Kevin Freking, Associated Press – Oct 23, 2021

CDC: Americans Can Choose Any Booster They Want, Starting Today Via KHN Morning Briefing; Kaiser Health News ~  Oct 22, 2021

Biden doubts Medicare benefits expansion could make it into infrastructure package By Robert King; Fierce Healthcare ~ Oct 22, 2021

As Democrats’ tax proposals evolve, the outlook for the super-rich is improving  By Andrew Keshner; MarketWatch ~ Oct 22, 2021

Opinion: To get reconciliation right, target the citizens who need help most From Robert L. Bixby; The Hill ~ Oct 21, 2021

President Biden’s Social Spending Bill Gets Slimmer And Slimmer  Via KHN Morning Briefing; Kaiser Health News ~  Oct 22, 2021

A 30-Year Campaign to Control Drug Prices Faces Yet Another Failure By Jonathan Weisman; The New York Times ~  Oct 21, 2021

Biden admin: Did we say $600 reporting requirement? We meant $10,000 (Update) By Ed Morrissey; Hot Air ~ Oct 20, 2021

Insurers look to make Dems’ latest pay-for plan politically toxic By Alice Miranda Ollstein & Megan Wilson; Politico ~ Oct 21, 2021

White House Suggests Fixes For ‘Build Back Better’ Plans, Including Cuts Via KHN Morning Briefing; Kaiser Health News ~  Oct 21, 2021

White House, Dems hurriedly reworking $2 trillion Biden plan By Lisa Mascaro, Darlene Superville & Alan Fram; The Associated Press ~ Oct 21, 2021

FDA OKs mixing COVID vaccines; backs Moderna, J&J boosters By Matthew Perrone & Lauran Neergaard; The Associated Press ~ Oct 20, 2021

Hearing aids can be expensive and hard to get. FDA rule would open access to millions of AmericansBy Ken Alltucker; USA Today ~ Oct 20, 2021

Democrats weigh vouchers for Medicare dental benefits amid funding squeeze. The idea came up during a meeting Tuesday between House progressives and President Joe Biden. By Alice Miranda Ollstein; Politico ~ Oct 20, 2021

FDA To Allow You To Get A Different Type Of Booster Than Your Initial ShotVia KHN Morning Briefing; Kaiser Health News ~  Oct 19, 2021

Democrats’ Drug Pricing Reforms Aren’t What They Seem From Sally Pipes; Forbes  ~ Oct 19, 2021

Income test for Medicare dental under debate; gets pushback By Ricardo Alonso-Zaldivar; The Associated Press ~ Oct 19, 2021

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CONGRESS SHOULD ENACT MEDICARE MULTI-CANCER EARLY DETECTION SCREENING COVERAGE Early detection of cancer through screening saves lives. Currently, early cancer detection screening for Medicare beneficiaries is limited to five cancers. According to the National Cancer Institute’s Surveillance, Epidemiology, and End Results program, 71% of the 600,000 cancer deaths each year are from types of cancer without a Medicare-covered early detection test. Enacting the Medicare Multi-Cancer Early Detection Screening Coverage Act of 2021, would create a covered benefit for multi-cancer early detection screening tests to ensure Medicare beneficiaries have access to these tests without unnecessary delay once approved under the Federal Food, Drug, and Cosmetic Act (FDA). Go to www.nrln.org/SE.html#/ and urge your members of Congress to support passage of the Medicare Multi-Cancer Early Detection Screening Coverage Act of 2021. ... See MoreSee Less
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Bill Kadereit has issued an NRLN President’s Forum message about the reports by the Trustees of Social Security and Medicare. He also covers the NRLN’s lobbying efforts on Social Security and Medicare. Go to the NRLN website at www.nrln.org to read the message. ... See MoreSee Less
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NRLN REVEIW 2021 AUGUSTThe NRLN Review provides a monthly report on National Retiree Legislative Network actions, events in Congress and important retirement news. Read the Review for September at:nrlndev.org/nrln-review/ ... See MoreSee Less
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NRLN REVEIW 2021 AUGUSTThe NRLN Review provides a monthly report on National Retiree Legislative Network actions, events in Congress and important retirement news. Read the Review for August at:www.nrln.org/REVIEW/NRLN%20Review%20current.pdf ... See MoreSee Less
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