It's Official: Affordable Care Act Improves Strength of Both Medicare And Social Security (Pelosi)

[jefferson_dem]

Official: Affordable Care Act Improves Strength of Both Medicare And Social Security
August 5th, 2010 by Karina

Today, the Social Security and Medicare Boards of Trustees released their annual reports. This year, they found that that the Affordable Care Act has improved the strength of both Medicare and Social Security. On Medicare, they found “substantially improved” finances:

Medicare’s Hospital Insurance (HI) Trust Fund is now expected to remain solvent until 2029, 12 years longer than was projected last year, which is a record increase from one report to the next.

In addition, the 75-year financial shortfall for the Hospital Insurance Trust Fund has been reduced an unprecedented amount, to 0.66 percent of taxable payroll from 3.88 percent of taxable payroll in last year’s report, and the projected costs for the Medicare Supplementary Medical Insurance (SMI) program over the next 75 years, expressed as a share of GDP, are down 23 percent relative to the projections in the 2009 report.

Nearly all of these improvements in projected Medicare finances are due to the Affordable Care Act that President Obama signed into law in March.

Part D, the Medicare prescription drug program, is also in financial balance. Projected costs are slightly lower overall than in last year’s report.

The Affordable Care Act also improves Social Security’s finances, offsetting a near-term hit due to the Bush recession:

Social Security’s actuarial deficit is reduced from 2.0 percent of taxable payroll to 1.92 percent due to changes in high cost health care plans.

Overall, it is projected that Trust Fund can pay full benefits until 2037, the same date of Trust Fund exhaustion projected last year. After 2037, it is expected that Social Security contributions will be sufficient to finance more than three quarters of scheduled benefits.

Ways and Means Committee Chairman Sander Levin on the reports:

These reports show the tangible, positive results of the improvements made to Medicare by health reform. Because of reform, Medicare’s solvency was extended by 12 years, making it a stronger program, and its strength will continue to improve as more components of reform are implemented.

Social Security plainly faces challenges in the future, but it remains a bedrock of economic security for tens of millions of Americans and we will ensure it remains that way for generations to come. We were reminded of the importance of Social Security throughout this recession as millions of families fell back on its guaranteed benefits to maintain their quality of life during the downturn. It was for precisely this reason Social Security was established and it has proven its value time and again.

Speaker Pelosi on the reports:

Every year, the Social Security and Medicare Boards of Trustees give us an opportunity to evaluate the strength of these essential national programs on behalf of the tens of millions of Americans who rely upon them. Despite the challenges of this economy, the news we received today is good: Americans can rest assured that the benefits they have earned remain guaranteed, and will be for years to come.

Today’s reports show the remarkable impact of health reform on the strength of our nation: because of reform, Medicare’s benefits were expanded and its fiscal health made more sound. Indeed, the Trustees today have reported that health reform has increased the solvency of Medicare’s hospital insurance program by 12 years—a record increase from one report to the next—and the long-term shortfall has been decreased an unprecedented amount.

Health reform has also helped shore up Social Security, reducing its actuarial deficit. Just days before the 75th anniversary of the creation of Social Security, the Trustees confirm that this solemn promise to America’s seniors remains strong and fundamentally sound. Though there are short-term challenges as a result of the Bush recession, Social Security can still continue to pay full benefits for nearly 30 years. And as the party responsible for the creation and protection of Social Security benefits, Democrats remain committed to ensuring the secure and stable retirement our seniors have earned for generations to come.

Unfortunately, Congressional Republicans disagree. They voted against the health reforms that made both these bedrock promises to Americans stronger. And again, they have proposed a path that puts Social Security – and the livelihoods of those who depend on it – at risk. After failing to privatize and cut Social Security five years ago, Republicans are charting a course right back to the failed ideas of the past.

We are not going back. Democrats will keep our promise to our seniors now and in the future.

http://www.speaker.gov/blog/?p=2441

[Triana]

1. I doubt the facts will stop the Obama Catfood Commission juggernaut

to destroy Social Security.