Women and Social Security Alert (WomenSSA)
Items in This Alert 2005 Social Security Trustees Report Finds Little Change in Social Security Solvency Washington Scene Upcoming Events |
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2005 Social Security Trustees Report Finds Little Change in Social Security Solvency On March 23, the Social Security Trustees released their 2005 annual report on the current status and projected condition of Social Security over the next 75 years. The report projects that Social Security benefit payments will begin to exceed tax revenues in 2017, and the trust fund will be exhausted in 2041, one year sooner than last year’s projection. The key dates and the overall financial picture in the trustees report represent little change from the 2002-2004 reports. The report reaffirms that Social Security does not face a near-term crisis. The key figures from the trustees report are:
The Board of Trustees consists of four administration officials (Secretary of the Treasury, Commissioner of Social Security, Secretary of Health and Human Services, and Secretary of Labor) and two trustees from outside the government who are appointed by the President and confirmed by the Senate. For more information, see the expert comments on the Trustees report from the Center for Budget and Policy Priorities and the Center for Economic and Policy Research. Elderly Women and Medicaid Social Security, along with private pensions and savings, are the main sources of income security for old age. Yet, rising expenditures for health care greatly threaten the retirement security of many Americans. The 2005 Social Security and Medicare Trustees report, released on March 23, predicts that the basic monthly Medicare premium would rise by 12% next year to $87.70 following a 33% rise in the last two years (in addition to a separate premium for prescription drug coverage starting next year). The trustees also predict that Medicare’s cost will grow rapidly as a share of the nation’s economy, exceeding Social Security’s cost in 2024. An even greater fiscal challenge lies ahead for Medicare than Social Security, because Medicare has already been using its trust fund since 2004 and the trust fund is expected to be depleted in 2020. While Medicare provides near universal health coverage for the elderly, other government health programs like Medicaid also provide additional coverage crucial for many of the elderly, especially women. Medicare beneficiaries with low incomes or very high medical costs are eligible to receive supplementary coverage from Medicaid—a program jointly funded by the federal and state governments—that pays for their Medicare cost-sharing, long-term care services, and prescription drugs. (With the new Medicare prescription drug coverage starting in 2006, Medicaid will no longer provide drug benefits for Medicare beneficiaries.) The President’s budget for 2006, however, proposes substantial cuts in federal funding for Medicaid—nearly $45 billion over the next 10 years. This proposed cut in federal Medicaid funds comes at a time when states are struggling to fund their share of Medicaid costs, with many states cutting back Medicaid coverage and benefits. The President’s proposal would aggravate the current funding situation for states, leaving many poor children, women, and the elderly without needed health insurance. (The House adopted a budget resolution that includes up to $20 billion cuts in Medicaid, while the Senate voted to remove Medicaid cuts in its version and instead create a commission to recommend changes in the program.) Medicaid is critical to the retirement security of many elderly women. Medicaid currently provides major health coverage for the low-income population, including children, the disabled, and the elderly. An estimated 53 million people in 2004 were enrolled in Medicaid, with children and low-income non-elderly adults (mostly women) accounting for nearly three-quarters of beneficiaries. The elderly make up about 11% of beneficiaries (5.1 million), but expenditures for them account for nearly 26% of the total Medicaid expenditures (see The Role of Medicaid in the Context of a Restructured Health Care System). Of all the elderly receiving Medicaid, women represent about 71% of beneficiaries and women’s percentage increases with age because they live longer but are poorer than men (see Figure 9 in Medicaid’s Role for Women). Elderly women who qualify for Medicaid as well as Medicare are very poor and tend to have extensive health needs; for these women, Medicaid’s coverage for long-term care or home health care is critical (their needs are ordinarily not covered by Medicare or by private insurance). Many formerly middle class women join the ranks of the poor as they age and their assets are depleted. Over 70% of nursing home residents and two-thirds of people receiving home health care are women. And, Medicaid provides the bulk of the funding for long-term care, financing the care of nearly 70% of nursing home residents (see Medicaid’s Role for Women). The President’s proposed cut in Medicaid is likely to force the states to make additional cutbacks in the program, including cuts in long-term care. Such cuts in Medicaid will severely threaten both the health care needs and the economic well-being of many poor elderly women. Washington Scene > USA Today Article, “Social Security Holds High Stakes for Women” On March 16, Dr. Heidi Hartmann and other women leaders were quoted in a USA Today article on the effects of Social Security privatization for women. While much of the media coverage of the Social Security debate has ignored the important role that Social Security plays for women, this article focused on women and also highlighted differences among women of color. > Congressional Caucus on Women’s Issues Meets with Women’s Organizations on Social Security A dozen Democratic members of the Congressional Caucus on Women’s Issues met with women’s organizations on March 15 about the issue of Social Security privatization. The Congresswomen emphasized that preserving Social Security is a women’s issue and opposed efforts to privatize Social Security. > In Symbolic Senate Vote, President Bush’s Plan to Privatize Social Security Falls Short On March 15, the Senate voted (Senate Splits in Test Vote on Social Security) on a nonbinding amendment to a budget resolution stating that Congress should “reject any Social Security plan that requires deep benefit cuts or a massive increase in debt.” The amendment failed, 50-50, but succeeded in attracting 50 votes. All 44 Democrats, the one Independent (Jim Jeffords of Vermont), and five Republicans (Susan Collins and Olympia Snowe of Maine, Mike DeWine of Ohio, Lindsay Graham of South Carolina, and Arlen Specter of Pennsylvania) voted for the amendment which declared their opposition to the President’s privatization plan. This vote shows President Bush faces stiff resistance in the Senate. > Right-Wing Groups Target Women’s Organizations on Social Security Over the past month, conservative groups like the Independent Women’s Forum have criticized women’s organizations for opposing Social Security privatization. On February 18 at the CPAC (Conservative Political Action Conference) annual event (discussed in IWPR’s Women and Social Security Alert No. 4,), Carrie Lukas, Director of Policy at the Independent Women’s Forum, talked about how women are going to be an essential battleground in the fight for Social Security privatization and that “the old guard feminist groups: NOW, NCWO, and AAUW are prepared to fight this tooth and nail” and have offered their own solutions. She referred to these groups as “Dependency Divas,” who push programs that make women more dependent on government. In their daily email alert on a range of issues including Social Security, the Heritage Foundation has posted links that criticize the National Organization for Women’s (NOW) position on Social Security (NOW Is the on the Wrong Side of the Social Security Debate and Social Security Reform: An Investment for Women). Upcoming Events > Women and Social Security Forum The National Council of Women’s Organizations (NCWO), YWCA USA, and BPW/USA invite you to a special briefing to learn about the future of Social Security and how you can get involved to protect it. The briefing will be held on April 1, 2005, from 2:30 PM - 4:30 PM at 2168 Rayburn House Office Building, Washington DC; For more information call 202-467-0801 or contact rschmidt@ywca.org. Speakers include:
> Social Security Matters Community ForumsAs a part of their Social Security Matters campaign, the Older Women’s League (OWL) will sponsor forums around the country. In 10 cities, OWL chapters will host community forums on Women, Social Security, and Privatization. The forums will be intergenerational and will feature speakers representing younger, midlife, and older women. One forum will be held in Hyde Park, NY (April 9) and another in St. Louis, MO (April 16). Other meetings are also being planned in Sacramento, CA; Ft. Lauderdale, FL; Phoenix, AZ; Connecticut; Denver, CO; Bucks County, PA; and Portland, OR. For more information, contact OWL at 800-825-3695 or info@owl-national.org. > Presidential Tour and Congressional Town Hall Meetings While administration officials conduct their tour “60 Stops in 60 Days” from March 3- May 1 to promote the President’s plan to privatize Social Security, many members of Congress are also holding town hall meetings this week and next during their spring recess with constituents about Social Security privatization proposals. Citizen input is critical for shaping the future of the debate. Contact information: President and Members of Congress at their district offices (www.house.gov and www.senate.gov) it.
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