This week, lawmakers in the House passed legislation to repeal the controversial Independent Payment Advisory Board, and The Senior Citizens League announced its support for one new piece of legislation..The big concern is that per capita caps and block grants won't keep pace with the real growth in costs in state Medicaid programs - especially since the reimbursements formulas would be tied to the rise in inflation. Actual medical costs are expected to grow several times faster than reimbursements. States could be forced to reduce spending on older people and younger disabled adults, who account for a disproportionately large share of Medicaid spending. States could tighten eligibility, reduce non-mandatory benefits like your home caregiving program, and nursing home reimbursements, or otherwise ration care..But with low growth in Social Security benefits, rapidly growing healthcare costs, and more people living longer in retirement, that argument has little support among the public. A March 2016, Pew Research survey found that 71% of Americans believe benefits "should not be reduced" while only 26% say that "cuts should be considered.".At this point in time, it remains to be seen whether or not lawmakers will successfully avert the October 1st shutdown. Leaders in the House have already cancelled the week-long recess that was scheduled to begin on September 23rd, and according to Congressional Quarterly, a Senate vote on the measure could come as late as September 29th just one day before funding for federal agencies expires..CPI Data Through August 2012, Bureau of Labor Statistics, September 14, 201Social Security Monthly Statistical Snapshot, Social Security Administration, July, 2012..The so-called "cromnibus," as many on Capitol Hill are calling it, seems to be a compromise that most lawmakers will be able to accept. However, some have been outspoken about their opposition since it does not include a policy rider that would explicitly prohibit the funding of the President's executive orders. Sen. Ted Cruz, stated this week: "Congress should stand up and use the power of the purse to say we will fund the operation of the government but we will not allocate taxpayer dollars to lawless and illegal amnesty.".In the debate over Social Security's funding, much of the debate has focused on benefit cuts. A recent survey by the National Academy of Social Insurance, however, shows that benefit cuts aren't supported by a large majority of survey participants. Those who participated in the survey agreed on a package of changes to strengthen Social Security that doesn't cut benefits..Because Medicare Advantage plans receive a capped monthly reimbursement for each beneficiary, TSCL is concerned that there is a potential financial incentive for Medicare Advantage plans to inappropriately deny some services or prescriptions in an attempt to increase their profits. Denial of medically necessary care and prescriptions can worsen your health, as well as leading to high out-of-pocket costs, financial burdens, and debt..Increasing the payroll tax cap. Currently, the amount of earnings subject to payroll tax is 7,200, and the Social Security payroll tax is not applied to annual income over that amount. In a recent survey of TSCL's members, 73% said they would like to see the 6.2 percent payroll tax applied to all earnings in order to increase the solvency of the program.
