AARP Executive Vice President Nancy
LeaMond has called for “common sense”
changes in the Medicare system that can
result in costs savings, while keeping vital
programs intact, in reaction to the recent
2014 Medicare Trustees report.
The report “reminds us of the financial
challenges facing Medicare,” LeaMond said,
“along with the overall high cost of health
care. With 64 million Americans expected to
be enrolled in Medicare by 2020, we must do
more to reduce wasteful spending throughout
our health care system.”
She said the government can reduce costs
and find significant savings in Medicare and
throughout the health care system with responsible
solutions rather than harmful cuts.
“By improving care coordination and
better use of technology, clamping down
on high drug prices, reducing unnecessary
services and other wasteful spending, and
targeting fraud and abuse, for example, we
would improve our health care system as
a whole while saving money in Medicare,”
said LeaMond.
“Some in Washington still hold on to the mistaken belief that cutting benefits or
asking seniors to pay more is the best way
to address Medicare’s financial challenges,
even though a typical senior has an annual
income of just $20,000 and already pays
thousands of dollars in out of pocket health
care costs. But we know that millions of older
Americans depend on Medicare for guaranteed,
affordable health coverage, and simply
cannot afford more than they already pay.
“That’s why AARP advocates for common
sense changes that can ensure affordable
health care for American families while
improving the quality and delivery of care
for today’s seniors and future generations.”
Additionally, LeaMond addressed a longterm
projected outlook by the Social Security
Trustees that indicated funds are in good
shape.
She said officials “must eventually make
modest changes to ensure current and future
generations of Social Security beneficiaries
receive what they’ve earned, it confirms
that Social Security can continue to pay full
benefits for nearly two decades.
“The trustees once again report that the
combined Old Age, Survivor and Disability
Insurance Trust can pay full retirement,
survivor and disability benefits for approximately
two more decades, and about
75 percent of benefits beyond that time for
at least several generations more.
“While the trustees report that the
Disability Insurance Trust Fund faces a
fast-approaching funding gap, the report
confirms that if the combined resources of
the Social Security Trust Funds are rebalanced,
no beneficiary needs to face an imminent
reduction in their earned benefits,”
said LeaMond.
She said to ensure full benefits over the
long term, there should be a national debate
on growing retirement insecurity and the
critical role of Social Security in the retirement income framework.
“Americans of all ages deserve an honest,
open, national discussion about the value of
Social Security and its importance to millions
of retired workers, spouses, children,
veterans, and persons with disabilities. We
strongly urge Congress to hold a separate debate
on the solvency and adequacy of Social
Security, as it is a separate, self-financed,
program that people pay into throughout
their lives and count on for each generation
of our families,” said LeaMond.
She said many politicians in Washington
talk about harmful changes to Social
Security as part of a budget debate without
considering “the devastating impact
such changes would have on the millions
of American families who depend on their
earned benefits. “