Press releases and Act-So committee

              Means-testing Social Security or Medicare benefits. "Means-testing" Social Security
or Medicare would prevent retirees who receive substantial income from other sources
from receiving these benefits. These programs would no longer be universal - some
workers would no longer be entitled to benefits, despite having contributed to the system
while working. Eliminating the universality of these programs could jeopardize their
appeal.
Raising the retirement age. The Social Security Act of 1983 gradually raises the
retirement age to 67 (by 2015). Some in Congress have proposed raising the retirement
age further and others have proposed accelerating the change. Elderly workers would
continue to be taxed, but would receive fewer benefits during retirement. This could
also have an adverse impact on minorities because statistically they have shorter life
expectancies.
Privatizing the Social Security program. Under this proposal advocated by several
members of the Advisory Council on Social Security, workers would decide for
themselves how best to invest their retirement money. An annual benefit far below the
poverty level would be guaranteed to each retiree; additional benefits would depend on
investment success. Social Security would cease to be a "security" program protecting
older Americans from poverty; it would become an "investment" program in which
each beneficiary assumes the risks of the market. Workers who make unwise investment
decisions or whose investments decline during economic downturns would not be
protected. Workers who could afford advisers to help them make investment decisions
could be at a distinct advantage.
Reducing Medicare payments to doctors and hospitals. Much of the $100 billion in
Medicare savings proposed by the Clinton Administration would come from reducing
payments to medical providers. Reducing such payments would help offset some of the
costs associated with the program's rapid growth. However, with many urban and rural
hospitals already struggling financially, reductions in Medicare payments could result in
fewer and less accessible medical facilities or in reduced quality of care for Medicare
beneficiaries.
Increasing Medicare premiums, deductibles and/or copayments. The congressional
reform plan raises Medicare Part B premiums and some have proposed raising
deductibles and copayments. Such increases would raise the out-of-pocket medical
expenses incurred by Medicare patients.
Moving Medicare beneficiaries to managed care plans. Many in Congress argue that
applying the private sector's managed care innovations to Medicare would help control
the program's cost. Moving Medicare beneficiaries to managed care plans, however,
could limit some patients' choice of doctors. Some also question the quality of the
services offered by managed care providers.
Both reducing the federal budget deficit and protecting the income security and health
of older Americans are important policy goals. All Americans, including senior citizens,
must be willing to do their part if we are to be successful. We must be cautious,
however, of proposals that single out a particular group of Americans for an unfair share
of the burden. It will be increasingly important for older Americans to be heard as this
Congress makes choices that will affect your quality of life.