Here we go again!
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Mar 18, 2009 Posted by Adam Swope
So you thought attempts to change Social Security had finally been put to rest with the collapse of Wall Street and deep losses in 401Ks, retirements funds and pension funds. Well, “entitlement reform” has returned to the political dialog in Washington and President Obama recently conducted a “fiscal responsibility summit” to address long-term problems in budgeting. I'm sure the President is aware that “entitlement reform (cuts)” is the objective of the Peterson Foundation, conservative think tanks and deficit hawks to cut back spending on Social Security, Medicare and Medicaid. Billionaire investment banker Peter Peterson set up his new foundation with a $1 billion endowment from his own fortune and hired David Walker, former Comptroller General of the U.S. and head of the Office of Government Accounting as President and CEO of the organization. Their plan is now in play. Senators Judd Gregg, Kent Conrad and others in Congress have proposed forming an entitlement commission. We must be alert to this ploy.
Using the present financial crisis, they hope to reduce critical safety nets for the elderly, the disabled, the poor and the middle class. Conservatives think government should step aside and let people fend for themselves as witnessed with Hurricane Katrina and New Orleans. The collapse of defined benefit pensions and investments in retirement plans in the Stock Market has proved that only Social Security successfully maintained a secure retirement over the past 74 years. Social Security can be fixed with minor adjustments and will remain solvent for our future generations. Medicare needs be addressed as health care reform in general to correct the problems facing all healthcare plans. The Congressional Budget Office has reported that spiraling health care costs, not the aging of our population, are the largest contributor to federal spending. Congress should address the damage brought to Medicare by the Medicare Modernization Act of 2003. Creating an Rx plan under Medicare with the ability to negotiate the costs of drugs as shown by the VA would encourage competition among private drug plans and help drive drug costs lower. Reducing the 12% to 19% extra payments to so-called “Medicare Advantage” plans would level the playing field between the MA plans and Medicare while saving $10 billion/yr. Allowing early retirees 55-64 who have lost their healthcare to buy in to Medicare would increase the pool of beneficiaries. And they must eliminate the 2010 program which will only add confusion for seniors and lead to the privatization of Medicare.
During this economic crisis, we must all stand together to solve these problems and get rid of wasteful spending. Our children, our future generations and our country depend on making sure this is done correctly.
Say “NO” to entitlement reforms!
Jean Friday, PARA President