News
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Legislative Update July Advisor Feed
As far as Medicare goes, the Part B funds will last for 30 years but the Part A funds, which pays inpatient hospital costs, will become insolvent in only 6 years. Both of those projections assume that nothing will be done before then to fix the programs, and TSCL has been working to get Congress to come up with a plan to stop those cuts from taking place. .You will still need to follow guidance at your workplace. .This week, lawmakers involved in talks to permanently repeal and replace the SGR revealed that a temporary pay-patch will likely be necessary. Those serving on three committees – the House Ways and Means Committee, the Energy and Commerce Committee, and the Senate Finance Committee – have successfully negotiated a legislative compromise, but they've been struggling for weeks to come up with offsets that will cover the cost of the 8.4 billion bill. … Continued
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Medicare Q A
To quickly determine whether a portion of benefits is taxable, taxpayers should take their adjusted gross income, and add any nontaxable interest, plus one - half of Social Security income. If the amount is over the thresholds shown then a portion of benefits are taxable. (For more information, see IRS publication 915 Social Security and Equivalent Railroad Retirement Benefits for worksheet and help in preparing tax returns). .Most Americans contribute 6.2 percent of every paycheck to Social Security, but due to the payroll tax cap, people earning more than 8,400 contribute nothing over that amount. Eliminating the payroll tax cap would extend the solvency of the program responsibly, without cutting benefits for seniors. Do you agree? .This higher starting benefit will mean higher cost-of-living adjustments (COLAs) in terms of dollars, and higher benefits for spouses and survivors that are based on your benefit. Over the course of a 25 year retirement, the extra money adds up to more income from Social Security, often in the tens of thousands of dollars depending on the age you retire. … Continued
Legislation before the House and Senate would repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) so that public servants receive the Social Security benefits they have earned and deserve. Will you cosponsor the Social Security Fairness Act (S. 521, H.R. 141) when you return to Washington? .TSCL believes that these two provisions unfairly reduce the earned benefits of millions of seniors each year. We were pleased to see support grow for the Social Security Fairness Act this week. .TSCL surveys over the past decade have indicated that the vast majority of older adults are overwhelmingly opposed to the government policy of allowing credit toward Social Security benefits for work under invalid and fraudulent Social Security numbers. A large number of the comments we receive are focused on the belief that immigrants are benefiting at the expense of U.S. citizens. Many older voters perceive unauthorized immigrants as benefiting from Medicaid, tax refunds for children, food stamps, and that children of unauthorized immigrants are swelling the enrollment of public schools. Meanwhile, the same voters are watching in disgust as lawmakers make surprise Social Security cuts, and battle down to the last minute over the question of whether to repay revenues borrowed from the Social Security and Medicare Trust Funds. .As TSCL supporters know, it is a particularly important issue for older people, who rely on medications to manage the medical problems associated with advancing age. However, drug makers remain adamantly opposed to government efforts to curb prices. .The Senior Citizens League thanks Senator Sanders and Representative Larson for their leadership on this important issue, and we look forward to working with their offices in the months ahead to help build support for their bill. For more information about the Social Security Administration Fairness Act, visit the Bill Tracking section of our website. For progress updates, follow TSCL on Twitter. .Can You Live On Social Security Alone? .In her opening statement, Chairman Susan Collins (ME), said: "Deciding at what age to begin claiming Social Security retirement benefits is the single most important financial decision that many Americans will ever make. Few, however, understand that making the wrong choice can end up costing them tens of thousands of dollars, or more, during their retirement." Retirees who qualify for Social Security benefits are entitled to begin collecting at 62, but for each delayed year, benefits grow by 8 percent until they reach their maximum amount at age 70. According to Chairman Collins, deciding when to file for benefits "could make the difference between a secure retirement and living in poverty." .TSCL is hopeful that President Trump will lend his support to the Medicare Prescription Drug Price Negotiation Act, since we believe it would go a long way in reducing the costs of lifesaving medications for beneficiaries. We will continue to advocate for it on Capitol Hill, and we hope to see it signed into law before the end of the 115th Congress. For more information, visit the Bill Tracking section of our website. .Each year, due to a faulty formula that's used to determine Medicare's reimbursement rates, doctors are threatened with sizable pay cuts. This year, if Congress fails to act, doctors will face a 25 percent cut. Lawmakers consistently override scheduled pay cuts with temporary "fixes," but many doctors have grown tired of the ritual and have stopped treating Medicare patients. The estimated cost of repealing the formula has recently dropped dramatically, and many are hoping to replace it in the coming months. Doing so would provide much-needed stability for Medicare beneficiaries.