Our mission and 2012 agenda
The Senior Citizens League (TSCL)
Legislative Agenda
112th Congress
With more than one million members, The Senior Citizens League (TSCL) is one of the nation’s largest nonpartisan seniors groups. Our mission is to promote and assist TSCL members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. citizens, and to protect and defend the benefits earned and paid for by senior citizens.
At TSCL we strive to defend those issues that are most important to our members and supporters. That’s why, each year, we survey our members and ask them, “What’s important to you?” We take those answers and base our legislative agenda around them.
Social Security
Comprehensive Social Security Reform
Long-term solvency of the Social Security program is essential. In 2010, due to the economic downturn and a stagnant recovery, the Social Security Trustees estimated that the trust funds ran a cash deficit of $41 billion and had to begin redeeming the U.S. government bonds held in the trust funds. Although the Social Security Trustees predict the trust funds will remain solvent, and that benefits can be paid in full until 2037, that assumes an unprecedented level of transfers from the general revenues. Leading economists, in the U.S. and worldwide, have said that the level of debt this would require risks undermining the stability of our economy.
Because of these risks, action will be required well before 2037 and the costs associated with delaying action grow each year. While TSCL understands that changes are needed to the Social Security system and some small changes are likely, harsh benefit cuts should not be tolerated.
COLA Fairness
For the first time since automatic COLAs were instated in 1975, Social Security beneficiaries did not receive cost-of-living adjustments (COLAs) in 2010 and 2011. After lobbying for an emergency COLA, TSCL was disappointed that Congress did not enact one to help offset increases in Medicare premiums and protect the buying power of Social Security benefits.
TSCL also strongly believes that the Social Security COLA that seniors are currently receiving does not accurately reflect how they must spend their money. Our studies and surveys indicate that the current COLA is growing too slowly and does not accurately measure inflation experienced by seniors. In fact, an analysis by TSCL in 2010 found that seniors have lost 24 percent of their purchasing power since 2000. The COLA is based on a consumer price index (CPI) that reflects how young urban workers tend to spend their money. Older Americans spend a disproportionate share of their household budget on health care. Since health care costs continue to rise so quickly – and since most health care spending cannot be substituted out for something cheaper – TSCL believes that seniors would be better served if their COLA was based upon a consumer price index for elderly consumers, the CPI-E.
The CPI-E regularly puts the spending inflation for seniors at two-tenths of a percentage point higher than the rate at which the consumer price index for young urban workers – the CPI-W – increases. TSCL members and supporters believe that the CPI-E should be fully implemented and utilized for determining seniors’ Social Security COLAs each year. TSCL estimates that a senior who retired with average benefits in 1984 would have received $13,723.16 more through 2011, if the CPI-E had been used.
TSCL is very supportive of legislation such as the Consumer Price Index for Elderly Consumers Actand is hopeful that it will be introduced in the 112th Congress. TSCL also supports legislation which would protect seniors in years such as 2010 and 2011, when there is no COLA, by providing a guaranteed COLA each year.
COLA Cuts
Despite the evidence that seniors are already being short-changed by inadequate COLAs, some have argued that COLAs are already too generous and should be cut.
The most frequently mentioned option is adopting the slower-growing “chained CPI” to calculate COLAs. TSCL believes that any cuts to the COLA would be unwarranted and unduly harsh, especially for the oldest and lowest income seniors who depend on Social Security the most. A study by TSCL studied the “chained CPI” and found that it would significantly reduce the amount of lifetime retirement benefits received by future Social Security recipients.
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Impact of the “Chained” COLA
Notes: 2.8% average COLA, no COLA received in 2011, changes implemented in 2011, 62 year old retiree with average benefit in 2010 of $1,067
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In addition, COLA cuts raise issues of benefit adequacy if Medicare Part B premium increases in the future exceed the growth in the COLA.
Social Security Notch Reform
The Senior Citizens League members and supporters tend to be older, less affluent seniors. They are also, to a large extent, Notch babies – those individuals who receive lower Social Security benefits because they were born in the years 1917 and immediately thereafter. TSCL feels that this is an inequity that was brought about because of the Social Security Act Amendments enacted and signed into law in 1977.
Just years before they were set to retire, these individuals learned that they would have significantly lower benefits than originally anticipated, and the transition formula provided by Congress failed miserably. The problem only grew and compounded with the inflation that occurred in the early 1980s. Thus, in order to make the Social Security program more equitable in general, and to correct a wrong done to Notch babies, we believe that some compensation for that injustice should be provided.
TSCL strongly supports legislation such as the Notch Fairness Act, which would provide either a $5,000 lump-sum payment (payable in four installments) or an increased monthly benefit calculation to Notch babies.
U.S. – Mexico Totalization Agreement
Social Security Totalization Agreements are designed so that workers and their employers would not be subject to double taxation, owing payroll taxes to both the country in which they work, and their home nation. In addition, totalization agreements allow workers to earn generic work credits good for receiving retirement benefits in either country. These credits from the United States and other countries can be totaled together to receive benefits. The U.S. currently has 24 totalization agreements with other nations, most having economies similar to our own.
The U.S. – Mexico Totalization Agreement—which was signed by the Social Security Administrations of both the U.S. and Mexico in 2004, and is due to undergo review by the current or future President(s)—continues to pose a threat to Social Security beneficiaries. Because of a loophole, if the President signs the final Executive Totalization Social Security Agreement with Mexico, it could lead to Social Security benefits going to individuals who worked in the U.S. while illegal.
Despite the efforts of TSCL and others, knowledge of the U.S – Mexico Totalization Agreement remains limited on Capitol Hill, and the issue flies under radar for the most part. TSCL has expressed its support for resolutions in opposition to the totalization agreement. In addition, TSCL is supportive of legislation, such as the Social Security Totalization Agreement Reform Act, which would grant more time for congressional review of these agreements. TSCL also supports loophole-closing legislation which would prevent individuals who worked in the U.S. while illegal from receiving credit for that work for purposes of Social Security benefit calculations.
TSCL has filed three lawsuits under the Freedom of Information Act requesting copies of the agreement and other information and has placed ads in The Washington Times in opposition to the proposed agreement. We will continue to closely monitor the totalization matter.
Protection of the Social Security Trust Fund
The executive and legislative branches of government have, in many instances, used the so-called “excess funds” – monies not needed immediately to pay out for benefits – in the Social Security trust fund for other purposes. TSCL members and supporters fervently seek protection of the Social Security Trust Fund – the monies provided for by the payroll taxes imposed for just that reason – and an ending of the practice by which politicians use that money for other purposes and replace the funds with a mere IOU.
This issue has become more important as Social Security began running cash deficits in 2010, having to redeem the government issued bonds in the trust funds. The program is expected to run cash deficits for the foreseeable future. TSCL supports legislation—and believes that any Social Security reform should contain language—to protect the monies in the Social Security Trust Fund by locking them out of the general budget.
Medicare, Seniors Health & Health Care Reform
Health Care Reform
After nearly a year of debate, President Obama signed the Patient Protection and AffordableCare Act (PPACA) into law in March of 2010. The PPACA (for the first time in history a law of such consequence and magnitude) was pushed through without bipartisan support and in the face of majority opposition by the general public, especially seniors. While TSCL feels that there are pieces of the law which are helpful and necessary we have several concerns about the impact it will have on senior citizens.
Specifically, TSCL is concerned that the legislation’s projected Medicare savings are built on shaky accounting and that some of the reductions in Medicare spending may harm seniors. TSCL was disappointed that the PPACA did not address a long term solution to the so-called “doc fix” and is also concerned with provisions in the PPACA which would impose additional costs and taxes on seniors. To that end, TSCL supports efforts to change or repeal the following provisions: The increase in the threshold to deduct medical expenses from one’s income for tax purposes (from 7.5% to 10%); the cuts in payments to Medicare providers; the expansion of means testing to Medicare Part D, resulting in increased premiums; freezing the income levels to determine means testing for both Part B and Part D for ten years, which will ensnare more seniors with increased premiums as time goes on and incomes rise; and the so-called “Medicare commission” the Independent Payment Advisory Board (IPAB). In addition, TSCL will continue to closely monitor the law for further provisions which may be detrimental to seniors.
According to a December 23, 2009 memo from the Congressional Budget Office (CBO), the majority of savings from the cuts to Medicare would be “used to pay for spending under the PPACA and would not enhance the ability of the government to redeem the bonds credited to the trust fund to pay for future Medicare benefits.”
A memo from Richard Foster, the Chief Actuary of the Centers for Medicare and Medicaid Services (CMS), also said that the “estimated Medicare savings may be unrealistic.” Foster said that “providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable” and might end their participation in Medicare.
As the law is implemented and potentially tweaked, TSCL will work with Congress to improve the necessary and valuable parts of the law, and fix or remove the parts that are detrimental to seniors.
Medicare Part B
The increases in the Medicare Part B premium, as well as the rise in the Medicare deductible, are two additional issues of grave concern to our members and supporters. In some cases, the increase in these two items comes close to offsetting the Social Security COLA.
In addition, many seniors have been subjected to the means, or asset, test for their Part B premiums since 2007. TSCL was very disappointed when the health care reform legislation even froze the income levels subject to the means test for the next ten years. If these levels do not rise with inflation, more and more seniors will be subjected to these increased costs.
TSCL supports eliminating the means test. Seniors should not be punished for attempting to plan for their retirement. We will continue to listen to our members and supporters as to how these increased costs are affecting their standard of living.
In addition, TSCL feels that Congress should consider a long-term solution to the so-called “doc-fix.” Short term fixes and emergency action have proven to be ineffective; have placed questions on Medicare’s financing; and above all, have threatened Medicare beneficiaries’ access to quality health care.
Medicare Part D
Although the Medicare prescription drug benefit, or Part D, has been viewed by some as largely successful, TSCL believes this program remains flawed.
The price of many prescription drugs dramatically increased after the benefit was implemented and continues to do so. This is due in large part to the cost of brand name and specialty drugs for which there is no generic or lower-cost alternative. These medications are often placed in “specialty tiers” that significantly drive up out-of-pocket costs and can cause beneficiaries to hit the doughnut-hole gap in coverage sooner.
The PPACA promises to gradually close the doughnut hole by 2020 and provide 50 percent discounts for covered brand name drugs and a smaller discount for generic drugs, for those who hit the doughnut hole in 2011. However, the way the doughnut hole is closed contains flaws and deserves a second look.
TSCL supports efforts to increase and improve outreach to seniors, especially those individuals that could qualify for Extra Help. Simplifying and streamlining the application process would also be a vast improvement the program. In addition to improving Medicare Part D TSCL will continue to seek other potential solutions for lowering the price of drugs for America’s seniors.
Medicare Fraud
Reducing fraud, waste and abuse in Medicare is an incredibly important topic for seniors. It is well understood that failure to root out and manage fraud costs everyone in higher premiums and taxes.
According to the most recent Annual Report from the Department of Justice on the Health Care Fraud and Abuse Control Program, enforcement efforts have yielded an impressive “return on investment” for the American taxpayer; for every dollar spent on federal health care enforcement, approximately $4 has been recovered and returned.
In addition, TSCL feels that significant parts of the Part D program are not getting the proper oversight. Because CMS has been slow to develop estimates of improper payments or recovery plans for improper payments in Part D, concerns are raised for both beneficiaries and taxpayers that scarce program dollars are being misspent.
With the implementation of the PPACA many new tools to fight waste, fraud and abuse will be available to agencies. However, Congress should not view the provisions in the PPACA to prevent fraud, waste and abuse as the end-all-be-all of prevention. Continued and increased pressure needs to be applied to ensure that taxpayers, the program and beneficiaries are not cheated and that every dollar is appropriately spent.
Prescription Drug Re-importation
The disparity of drug costs in the United States, Canada and Europe remains striking. TSCL supports legislation which would, in our view, make safe and secure prescription drug re-importation a reality. TSCL believes that the Medicare prescription drug benefit law is flawed and further attention should be given, and action taken, to lower prescription drug costs.
During the health care debate, TSCL was disappointed when the Senate rejected an amendment to allow safe and secure prescription drug re-importation.
TSCL will work to ensure that legislation permitting the safe re-importation of prescription drugs is introduced during the 112th Congress. The goal remains to seek safe and affordable medicines for all Americans.
TSCL Seniors Health Initiative
Complementing our efforts to protect Medicare benefits, TSCL launched the Seniors Health Initiative to monitor federal policies and defend the interests of seniors. Among other work, TSCL filed comments before the Food and Drug Administration; an amicus curiae brief in the U.S. Supreme Court; and drafted legislation for introduction in the U.S. Congress.
Our Commitment
TSCL’s all-volunteer Board of Trustees, the legislative team and the administrative staff, will continue working on behalf of seniors. We offer not only our lobbying efforts, but also information via our website and newsletter, member benefits and responses to each and every phone call and letter.