Social Security, Medicare & Medicaid What’s at stake & What we need to do Town Hall Meetings

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Social Security, Medicare & Medicaid What’s at stake & What we need to do Town Hall Meetings Richmond 3/12/13 Roseville 3/13/13 San Francisco 3/14/13 San Jose 3/15/13 Stockton 3/16/13 Eric Kingson Professor of Social Work, Syracuse University - PowerPoint PPT Presentation

Transcript of Social Security, Medicare & Medicaid What’s at stake & What we need to do Town Hall Meetings

Social Security, Medicare & Medicaid What’s at stake & What we need to do

Town Hall MeetingsRichmond 3/12/13Roseville 3/13/13

San Francisco 3/14/13San Jose 3/15/13Stockton 3/16/13

Eric KingsonProfessor of Social Work, Syracuse UniversityFounding Co-director, Social Security Works

Co-chair, Strengthen Social Security Coalitionwww.strengthensocialsecurity.org

erkingso@syr.edu

Organization of Presentation

What we built, why we built them & why they work

Why and how they are under attack

What’s at stake for each of us and the nation

What being done by our allies and what we can do

Generations of Americans Built SS, Medicare & Medicaid. They work well & have strong public support. Even so, they have been under attack for many years and there is danger that their protections will be severely cut.

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Generations of Americans Built SS, M & M

Our Social Security, Medicare & Medicaid are critical systems that serves us all, like the military or the highway system. SS is the foundation of our retirement security. They are basic protection for our families.

Each generation has done its part to build and maintain these systems over 77 (47) years.

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Why we built it

Our SS, M & M systems are vital because they are by far the safest, most efficient, and most reliable way for Americans to guarantee their retirement income and health care.

Private retirement investments are inherently risky. Even sophisticated investors can lose everything.

Health care costs can undermine family finances, access and care

Social Security Works for California5 million Californians received Social Security in 2010

About 3.5 million retired workers & their spouses700,000 disabled workers and their spouses

380,000 widows and widowers360,000 children

1 in 8 receive Social Security benefits

Each month $5.3 BILLION goes into CA homes from SSThat’s $64,000,000,000 per year ( $64Billion!)

Substantial impact on economy (3.4% of GDP)

4.6 million insured by Medicare

11 million insured by Medicaid/Child Health Plus

($156,000,000,000 per year from SS, Medicare & Medicaid)

Source: Social Security, Medicare and Medicaid Work for California

Social Security data available at end of PowerPoint presentation for the following counties:

Contra Costa CountyPlacer County

Sacramento County San Francisco County

San Joaquin CountySolano County

Social Security provides three-quarters of the total income to the 60% of elderly households with incomes below $32,602

Strong Support across all groups “Americans value Social Security, want to

improve benefits, and are willing to pay more for the more to pay more to maintain and expand its benefit protections (NASI, 2013)

 – Roughly four out of five say they value it for themselves,

their families and for the sound protection it provides to tens of millions of beneficiaries;

– More than four-fifths say that benefits are too low for retirees

– Three-quarters favor improving retirement protections for working Americans even if it requires increasing payroll tax contributions.

– More than four out of five believe it should be preserved for future generations even if it requires increasing payroll tax contributions.

It’s about what we value• Based on civic and religious principles

• We are all in it together

• Hard work and fair return to work

• Responsibilities to care for our children, parents, neighbors and selves

• Right to live with dignity in old age, in disability or when a parent dies or is disabled.

• SS, M & M move our nation closer to what Dr. King called “the beloved community,” the community where we understand that…"all people [should] share in the wealth of the earth. ... [Where] poverty, hunger and homelessness will not be tolerated because ... human decency will not allow it."  King Center

Social Security, Medicare and Medicaid are solutions, not problems

Politicians used to understand this

President Eisenhower

LETTER FROM PRESIDENT DWIGHT D. EISENHOWER TO HIS BROTHER, EDGAR EISENHOWER

Should any political party attempt to abolish social security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history. There is a tiny splinter group, of course, that believes you can do these things. Among them are H. L. Hunt (you possibly know his background), a few other Texas oil millionaires, and an occasional politician or business man from other areas. Their number is negligible and they are stupid.

November 8, 1954 http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/1147.cfm

What happened? Why are these institutions under attack?

Easy votes came to an endShift in mid-1970s towards financing concerns

Policy arena and conflict expandedRadical Conservative’s “Leninist” strategy & vision

Progressive’s talk “percents of taxable payroll”Conservative’s appeal to values

Intergenerational inequity/Young vs. Old frameUnfair to women, Latino’s, African-Americans, rich, poor

UnsustainableTurning “Entitlement” into a 4 letter word

PrivatizationThen Eureka: The Deficit/Debt Crisis!!!!!

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February 2009 Fiscal Task ForceConrad/Greg November 2009

National Commission for Fiscal Responsibility and Reform/Bowles-Simpson (Dec 1, 2010)

2011 State of the UnionGangs of 6 & 7

Obama/Boehner NegotiationsDebt Ceiling Negotiations July 2011

Supercommitee DeadlockBudget Control Act of 2011

SequestrationPresident’s continuing desire for Grand Bargain

New Ryan Budget

The “Entitlements Problem” FrameProgressives play “Whack a mole”

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SequestrationPlaying off young against old

White House seeking “grand bargain”

Ryan budget

Debt ceiling

Ageism / Blaming Baby Boomers

Threats

What’s at Stake?Cost of Living Adjustments for current & future beneficiaries

Retirement age increases in Social Security and Medicare

Basic structure of Social Security

Social Security Administration Services

Privatization “light”Privatizing Medicare

Defined benefit vs. defined contribution in Medicare

Block granting and radically diminishing Medicaid protections

Middle class security

Children’s & grandchildren’s security

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AFL-CIO Repeal the sequesterCongressional Progressive Caucus No Cuts letter 107

Grayson Takano Letter -PledgeRepeal the sequester petition – 300,000

March 20 Day of Action Senator Begich’s and Cong. Deutch Bill

Senator HarkinsSenator Sanders/Co-sponsor Senator Reid

Congressman Conyers – Cancel the sequesterTransition Report – Field activities

What organizations & champions are doing?

Retirement Income Crisis

2/3rds of working Americans unable to maintain standard of living in retirement (NRRI)

$6.6 trillion retirement income gap, ages 32-64(Pension Rights Center)

Household wealth dropped from $66 trillion in 2007 to $58 trillion in 2011

Households “headed” by person 55-64 dropped from $61,700 in 2009 to $ 55,750 in 2011

54% of 45-54 say “totally unprepared for retirement” (2011 Alliance Life Insurance Survey)

What we can do

Bring our voices into debate

Seek pledges/promise/hold politicians responsible

District visits

Write and call members of Congress and White House. Thank champions

Participate in CARA actions/National Day of Action

Newspaper letters, radio call-ins

An Affirmative Agenda

Lift the cap

CPI-E

Restore SSA to first class service

Special minimum, Caregiver credits, Student benefit & other targeted

improvements

SSI – assets tests, basic benefit

Benefit improvements as economy strengthens

Next steps:We have to keep fighting

• Tell them to scrap the cap, not…

• Keep SS out of Debt discussion

• Oppose All Cuts

• Cancel the sequester

• Hold Members Accountable, even our friends

• Focus on retirement income threats

• PROTECT THE LEGACY

End here

Social Security Works for Solano County

1 in 7 receive Social Security benefits 1 in 8 insured by Medicare1 in 6 insured by Medicaid

60,000 received Social Security in 2010

About 40,000 retired workers & their spouses11,000 disabled workers and their spouses

5,000 widows and widowers5,000 children

Each year $766 MILLION into Solano County homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for Contra Costa County

1 in 7 receive Social Security benefits 1 in 7 insured by Medicare1 in 8 insured by Medicaid

155,000 received Social Security in 2010

About 110,000 retired workers & their spouses22,000 disabled workers and their spouses

12,000 widows and widowers11,000 children

Each year $2.2 BILLION into Contra Costa homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for Placer County

1 in 6 receive Social Security benefits 1 in 6 insured by Medicare1 in 12 insured by Medical

64,000 received Social Security in 2010

About 48,000 retired workers & their spouses8,000 disabled workers and their spouses

4,000 widows and widowers3,500 children

Each year $893 MILLION into Placer County homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for Sacramento County

1 in 7 receive Social Security benefits 1 in 8 insured by Medicare1 in 4 insured by Medicaid

201,000 received Social Security in 2010

About 128,000 retired workers & their spouses39,000 disabled workers and their spouses

15,000 widows and widowers19,000 children

Each year $2.5 BILLION into Sacramento homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for San Francisco

1 in 7 receive Social Security benefits 1 in 7 insured by Medicare1 in insured by Medical

112,000 received Social Security in 2010

About 82,000 retired workers & their spouses18,000 disabled workers and their spouses

7,000 widows and widowers5,000 children

Each year $1.4 BILLION into San Francisco homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for Santa Clara County1 in 9 receive Social Security benefits

1 in 9 insured by Medicare1 in 7 insured by Medical

205,000 received Social Security in 2010

About 154,000 retired workers & their spouses24,000 disabled workers and their spouses

14,000 widows and widowers13,000 children

Each year $1.4 BILLION into San Francisco homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for: Congressman Mike Honda’s Constituents (17th CD), 91,000 receive Social Security benefits each month

$1.1 billion each year

Congressman Ann ’s Constituents (18th CD), 96,000 receive Social Security benefits each month

$1.1 billion each year

Congresswoman Zoe Lofgren’s Constituents (19th CD), 120,000 receive Social Security benefits each month

$1.5 billion each year

Congressman Sam Farr’s Constituents (20th CD), 72,000 receive Social Security benefits each month

$717 million each year

Social Security Works for San Joaquin County1 in 7 receive Social Security benefits

1 in 8 insured by Medicare1 in 4 insured by Medical

93,000 received Social Security in 2010

About 60,000 retired workers & their spouses17,000 disabled workers and their spouses

7,000 widows and widowers9,000 children

Each year $1.2 BILLION into San Joaquin homes from SS Source: Social Security, Medicare and Medicaid Work for California

Seguro Social, Medicare y Medicaid funciona para california

Social Security Works for:

Congressman Jerry McNerney’s Constituents (9th CD)

81,221 receive Social Security benefits each month$1.1 billion each year

Budget Control Act of 2011Four components of the debt-ceiling deal

1) Established Super committee & process

2)$917 billion in discretionary spending cuts over the next 10 years.

3) Creation of “Super Committee” tasked to recommend another $1.5 trillion in deficit reduction for an up-or-down vote in Congress by December 23, 2011. No changes allowed.

4) Trigger to enact $1.2 trillion in across-the-board cuts if the Super Committee fails, split equally between defense and non-defense programs; Social Security is exempted.

The Long-Range Forecast(Source: 2012 OASDI Trustees Report)

• Social Security is currently in surplus and has an accumulated reserve of $2.7 trillion.

• Revenue will exceed benefits and admin. costs until 2021, at which time total accumulated reserves will be $3.1 trillion.

• The accumulated assets will enable the payment of full benefits until 2033, in the unlikely event that Congress does not act before then.

• In 2033, reserves are projected to be depleted. Income is forecast to cover 3/4ths of benefits due from 2033 through 2087.

• Projected shortfall 2.61% of taxable payroll

Finances – Three sources of RevenuesTrust fund income = $873.4 billion (mostly contributions)Trust fund outgo = $832.3 billion (99% in benefits) Surplus = $41.1 billion(2013 projections from 2012 OASDI Trustees Report)

By law, surpluses are invested in U.S. government securities and earn interest that goes to the trust funds.

Source: Social Security Administration, Income of the Aged Chartbook, 2010 http://www.ssa.gov/policy/docs/chartbooks/income_aged/2010/iac10.pdf

Used by the permission of Joel Pett and the Cartoonist Group http://www.kaiserhealthnews.org/Cartoons/2011/August/Monopoly-Money.aspx

Blaming Social Security, Medicare, Medicaid, UI, etc.

More than benefits

                     

A commitment to each other