Friday Alert  4/29/05
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.org

Bush Would Cut Social Security Benefits for Working Families
Last night President Bush proposed slashing future Social Security benefits for America's middle class. In his first primetime press conference in a year aimed at refocusing his faltering campaign to privatize the nation's 70-year-old retirement security program, the President insisted private accounts be part of any overhaul and recommended a sliding scale of benefit cuts for future retirees.

"Massive Social Security benefit cuts aimed at the middle class, spell disaster for this country's aging population," said George J. Kourpias, president of the Alliance for Retired Americans. "Nothing the president has proposed will help guarantee a decent standard of living America's seniors have for decades known they can rely on when they retire."

The president's proposals are unlikely to loosen the stalemate on Capitol Hill as the Senate Finance Committee begins the arduous task of drafting legislation. Democrats are unanimous in their opposition to private accounts because they would significantly worsen Social Security's financial outlook and require trillions of dollars in new debt. After months of the President's personal campaigning, polls show a marked drop in support for private accounts, which hasn't been helped by a slumping stock market and sluggish economic growth.

Bush Plan: How Much of a Cut and For Whom?
President Bush's Social Security proposal already includes a benefit cut for those who "volunteer" to invest in a private account. Last night, the president proposed even more cuts targeted toward those the president referred to as "high-wage earners" but in reality includes workers earning as little as $20,000. Under his plan when fully phased in a worker who had earned $37,000 per year would have a 28 percent benefit cut; a worker who had earned $58,000 per year would have a 42 percent benefit cut; and a worker who had earned $90,000 per year would have a 49 percent benefit cut. Workers making less than $20,000 a year would not see any changes in their benefits.

Thousands Unite in Opposition to Privatization
Tuesday was a busy day for Social Security. The Senate Finance Committee began the legislative process of overhauling Social Security. President Bush stumped for private accounts in Galveston, Texas with embattled House Majority Leader Tom DeLay. And on Capitol Hill, 3,500 concerned citizens joined 120 Members of Congress to oppose privatization. Sponsored by Americans United to Protect Social Security, the rally brought together groups representing a wide array of interests with one common mission: to protect Social Security from privatization. Alliance President George Kourpias was among several speakers who addressed the spirited crowd saying "Older Americans will not be left on the sidelines. This is our battle and we will win because right and might are on our side." Rallies were also held in 34 states across the nation.

Medicare Drastically Limits Claim Hearings
Medicare officials have made it more difficult for patients to get a hearing when they are denied claims for home care, nursing homes, prescription drugs and other services. Beginning in July, the number of locations for face-to-face hearings will go from 140 sites to four. The New York Times reports that under the new policy, most hearings will be held via videoconference or telephone. Those beneficiaries who want a face-to-face hearing will need to show "special or extraordinary circumstances," according to the rules. The Department of Health and Human Services, which oversees claims, defended the change citing the increased efficiency and cost-effectiveness of videoconferences.

Yet the Government Accountability Office, Congress's investigative arm, noted in a recent study that Medicare's beneficiaries are uncomfortable with videoconference technology and prefer hearings in-person. Lawmakers, judges, consumer groups and advocates for beneficiaries all expressed concern over the change. "This move severely limits the ability of our most vulnerable patients to get access to the best care," said Ruben Burks, secretary-treasurer of the Alliance. "It will have a significant and detrimental impact on the health care needs of seniors." The Bush administration anticipates an increase in the number of claims filed when Medicare's drug benefit is unveiled next year. 

Register for the Alliance's 2005 Legislative Conference
The Alliance for Retired American will host its National Legislative Conference September 7-9, 2005 in Washington, D.C. The conference will include experts on aging; informative break out sessions; plenary sessions with Members of Congress and community leaders about senior issues; and a Lobby Day on Capitol Hill. Download an application or register online at www.retiredamericans.org/legconf or call Joni Jones at 1-888-373-6497.

Doublespeak
"I have just come from the Bureau of Public Debt. You see, a lot of people in America think there's a trust, in this sense -- that we take your money through payroll taxes and then we hold it for you, and then when you retire, we give it back to you. But that's not the way it works.
There is no 'trust fund,' just IOUs."
- President Bush, 4/5/05, referring to the Social Security Trust Fund, which consists of U.S. Treasury bonds

"I know some Americans have reservations about investing in the stock market. So I propose that one investment option consist entirely of Treasury bonds, which are backed by the full faith and credit of the United States government."
- President Bush, 4/28/05, referring to his proposals for private Social Security accounts

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