Friday, April 27, 2012

New Social Security, Medicare Projections No Excuse for Radical Changes

Reacting to new reports on the health of the Social Security and Medicare Trust Funds, Alliance Executive Director Edward F. Coyle warns retirees to be wary of politicians who would use these reports as, “political cover for radical changes that would put seniors at risk while enriching Wall Street and the big health insurance companies.” Social Security, according to its Trustees, has a $2.7 trillion surplus, enough to fully meet the demands of a growing retiree cohort through 2033. With no action from Congress, it would cover most benefits through 2086. The Alliance supports an effort by Senator Tom Harkin (D-IA) to significantly boost the Social Security Trust Fund by requiring the nation’s highest wage earners to pay Social Security taxes at the same rate as middle class workers.

The Trustees report for Medicare noted that its Trust Fund, which covers hospital care, can fully pay benefits through 2024, and cover most benefits through 2085. Coyle noted that the 2010 Affordable Care Act set in motion several bold steps to lower Medicare costs through greater emphasis on preventive care and eliminating subsidies to private insurance companies. These approaches, Coyle said, are in stark contrast to Republican presidential candidate Mitt Romney’s proposals to raise the eligibility age, reduce benefits, and radically change Medicare in a way that generates even greater profits for health insurance companies. To learn more, visit http://bit.ly/I6lFk9.

Source: Alliance for Retired Americans

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