Republicans in the House of Representatives have put forth their plan for what that they hope to extort from the President by threatening to put the U.S. government into default on its debts. Here's what their plan would do to Social Security retirement benefits (begins at page 80):
- Implement a new minimum benefit of 15% of the average wage index;
- "Modernize" the Social Security benefit formula, which is a euphemism for reducing future benefits for those now 54 and younger;
- Increase Full Retirement Age to 70 between now and 2040;
- Eliminate the retirement earnings test for those who are under Full Retirement Age;
- Eliminate auxiliary benefits for high wage earners.
The plan also includes changes in disability benefits (begins at page 74):
- Enact a benefits offset experiment that would reduce disability benefits by $1 for every $2 earned (they must not know that this experiment is underway already);
- Allow FICA reductions for employers with high rates of employee retention, which is supposed to help handicapped people stay employed (which would disadvantage manufacturers);
- Require employment in six of the last ten years, instead of five;
- Time limited disability benefits for some recipients;
- "Update" the grid regulations;
- Make disability benefits contingent on medical improvement (I don't think they meant to say that but that's what they said);
- Prevent those drawing unemployment benefits from drawing disability benefits;
- Eliminate withholding of attorney fees for representing claimants (at least I think that's what they're saying but they only thing clear about it is that they bear a lot of ill will towards attorneys);
- Close the record "after a reasonable period of time";
- Require Social Security to conduct periodic reviews of ALJ decisions, particularly those of "outlier" judges;
- Prohibit reapplications within 12 months of a denial;
- Increase the waiting period for Medicare from 24 months to 60 months;
- Eliminate the ability to apply for both early retirement and disability benefits at the same time;
- Allow employers and employees a reduced FICA rate if the employer provides long term disability benefits.
14 comments:
I am working on a brief involving an outlier ALJ that has denied 94% of the cases he decided on the merits so far this year. This is right in line with what he has done in past years. I wonder if that is the outlier review the GOP imagines needs to take place?
This RSC budget was released in June of last year ...
Eliminating the retirement test for those under FRA seems like an idea Republicans wouldn't like.
"Make disability benefits contingent on medical improvement". Do they, or have they, ever researched into HOW SSDI works? Uhhh, if they didn't mean to say that, why did they? Who's writing this stuff?? That is an error that just shows that either nobody proof read it, or nobody knows how SSA (specifically SSDI) works. The "benefits offset experiment" REALLY got me (already being done). Prohibit reapplications within 12 months of denial?!? Increase the waiting time for Medicare!?? I thought 2 years was bad, it feels like they're waiting to see if one dies before they have to cover them on both lines. FIVE years? I mean, where's the compassion in a system that is supposed to be compassionate? That being said, there are a few lines in there I agree with, but the majority of it is fresh spring-time moose poo.
The sad thing is that a huge portion of those adversely affected by these proposals are supporters of the party making them and they will continue to support that party. However irrationally, they will believe that these changes are not meant to affect them, or their family or friends, but only "those people" who are cheating the system and deserve to be punished. Such is the state of political brainwashing in the United States today.
It’s not a “compassionate” system. That’s the whole reason they created the CAL category.
It’s a system of last resort.
I have not read the full text yet, but I'm curious what would happen if the waiting period for Medicare were lengthened. My suspicion is that it would hasten bankruptcies due to medical bills and increase the number of seniors who need access to costly state based Medicaid instead of reducing the need.
"Increase the waiting period for Medicare from 24 months to 60 months"
Do they care about people at all?
A few of the proposals make sense. Someone getting unemployment benefits should have their SSA DIB benefits reduced. Similar concept to workers compensation offset.
Speaking of workers' comp, Congress could save millions by doing away with the phony "life expectancy" provisions.This allows claimant to completely escape offset of DIB even if they receive a huge worker's comp settlement for hundreds of thousands of dollars. SSA should stop recognizing life expectancy classes written into WC settlements.
@9:53 Usually their states medicaid will kick in for the 2 year wait, BUT that depends on what state you are in. I agree totally with you. It's a ridiculous thing they make one wait TWO years....let alone 5! That would but a strain on the state Medicaid systems, but, I guess they either haven't thought about that, or just don't care.
@2:00 PM, April 27, 2023
What if a person's assets do not allow medicaid eligibility?
Medicaid aint gonna cover you with over $2000 in savings. Spouse wages count too. That backpay has to be spent down. You would have to go on Obamacare and pay.
2:00pm here...... Wasn't a problem for me, Medi-Cal picked up the 2 year wait and that was in the early 2000's. If ya don't have savings, or a spouse, and are only living on SSDI, one is eligible for Medicaid in California and Montana during that time. It all depends on the state in which you live. The state I CURRENTLY live in, "Obamacare" is medicaid. So even here, medicaid would kick in. There are obviously differences depending on circumstances and the state in which one lives. I was referring to a single person with $0 savings (or very little) with no recourses or assets. Medicaid filled the gap.
"Prevent those drawing unemployment benefits from drawing disability benefits." If anything the opposite argument could be made that you could prevent those getting disability from receiving unemployment as getting disability may imply that you have removed yourself from the workforce. Anyway, in normal times most state unemployment only runs for 26 weeks which basically means it would expire during the disability waiting period.
"Eliminate the ability to apply for both early retirement and disability benefits at the same time." This is often a function of the need for some income during the waiting period and during the time it takes to get your disability claim processed. You can get retirement done online but may wait for months, if not years when under appeal,for disability. And if your disability is denied and under current law you can't get retroactive early retirement, would your denied disability claim serve as protective filing for early retirement?
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