The country's foremost senior-issues advocacy organization on Friday night lent its support to a critical provision of the president's tax cut deal with Republicans.In what could prove to be a consequential assessment of "the framework," AARP's Executive Vice President John Rother says that both he and his organization have determined that a two percentage point reduction in the payroll tax rate (from which Social Security gets its revenue) would not endanger the solvency of their community's cherished program.
Dec 11, 2010
Et Tu, Brute?
From Sam Stein writing at Huffington Post:
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AARP also supported the Part D Prescription medicine part of Medicare. They tend to be amenable to practically any suggestions put forward by the conservatives in Congress. I suppose this is their revenge for the cuts in Medicare Advantage plans (Part C) contained in the ACA. AARP is an insurance company, one way or another and any diminution in SS benefits could result in a new form of disability insurance making big money sometime in the near future. They sponsored a number of Advantage plans and are presumably feeling some bite from the ACA. Nancy Ortiz
Nancy:
It sounds like you are opposed to the passage of Part D of Medicare.
Am I correct?
I would really appreciate learning of your perspective of Medicare Part D (as well as the perspectives of others).
Don Levit
Part D became a joke when Medicare was barred from negotiating prices as is allowed under the VA. It's a giveaway to Big Pharma, the GOP's second biggest industry donor. It should be repealed.
I am on the fence about Medicare Part D but I do know that it didn't help my father at all. He was paying about $800 a quarter for his medications. But the fact that there is no negotiating for medication costs is troubling. The same applies to the Federal Health Benefits. Why shouldn't the Federal government get better prices for such large purchases? Why are we subsidizing the pharmaceutical companies? They seem to be doing quite well on their own.
Well, I agree with you that negotiating should be part of the process.
But beneficiaries are getting a super deal.
Premiums are paid 75% by the government's general revenues (and debt), coming right out of the budget.
It is probably the most expensive program in all of Medicare, primarily due to its lack of pre-funding.
Closing the donut hole will simply increase premiums for both beneficiaries and the federal government, and increase the debt load for future generations.
Don Levit
Gee, Don, aren't you worried about the Medicare "Trust Fund?" Where's the usual rant about that? Hmmm?
Good point, anonymous. The unfunded liabilities of Medicare are much higher than those of Social Security.
Until we are able to have a real trust fund, with a real store of pre-funded wealth, prefunded with FICA contributions, the unfunded liabilities remain, regardless of the size of the trust fund balance.
Don Levit
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