For Immediate Release                                            

October 26, 2011

Contact: Tory Anderson 623-570-6396 or AZRetiredAmericans@gmail.com

New Report: Social Security, Medicare & Medicaid Work for Arizona and America

Programs provide benefits to 1 out of every 6 residents, contribute $31 billion per year to state economy

A new report issued today (http://bit.ly/vGcf3V) outlines the importance of Social Security, Medicare, and Medicaid to people in Arizona and the state’s overall economy. 

The report comes out just as Arizona Senator Jon Kyl finishes his work on the congressional Super Committee tasked with reducing the federal deficit.  The Committee must recommend at least $1.2 trillion in spending cuts by November 23.  The full Congress must approve these recommendations by the end of the year, or it will trigger automatic deficit reduction.

At an event at the Armory Park Senior Center today, the Arizona Alliance for Retired Americans unveiled the report detailing the number of Arizona residents who rely on these programs as well as the economic impact and number of jobs in Arizona the programs support.   The group was joined by the Arizona Center for Disability Law, Representative Steve Farley, and Congressman Raul Grijalva.

Although programs like Social Security, Medicare and Medicaid are widely scapegoated in federal deficit discussions, today’s report points out that they are not the true cause of the deficit. The report notes the large recent run-up in federal deficits resulted largely from 2001 and 2003 tax cuts; unpaid costs of the Iraq and Afghanistan wars; the Great Recession which dramatically reduced tax collections, and the Wall Street bank bailout. Correspondingly, in seeking solutions to the federal deficit, the Super Committee should be looking at its causes and should not be cutting Social Security, Medicare, and Medicaid, which are absolutely vital to the economic security of this nation.

Highlights from the new report:

ü  Social Security, Medicare and Medicaid spend a total of about $31 billion a year in Arizona, providing benefits to an average of 1 out of every 6 residents for each program.

ü  Social Security provided benefits to 1 out of 6 (11.3 percent) residents in 2010, with a typical benefit received by a retired worker in Arizona of $13,232.

ü  Without Social Security, the elderly poverty rate in Arizona would increase from 1 out of 11 (9.1 percent) to 4 out of 10 (40.3 percent) residents.

ü  Social Security never has and will never contribute to federal budget deficits because, by law, it does not have borrowing authority.

ü  Social Security, Medicare, and Medicaid are a lifeline for residents of Arizona, and the lifeblood of many small businesses, hospitals, nursing homes and home caregivers. Most of the jobs they create stay in America. Cutting these programs would threaten our families’ economic security and health and deepen our jobs crisis.

ü  Medicare spending generally rises less than private health insurance. From 1997 - 2009, Medicare’s annual costs per beneficiary rose far less than those of private health insurance.  Cutting Medicare’s benefits simply shifts costs to the sickest and oldest among us, forcing some seniors and people with disabilities to forego treatment, living shorter, less healthy – and more medically costly – lives as a result.

ü  Two-thirds of all Medicaid spending is for seniors and people with disabilities. One out of every four (16 million) seniors and people with disabilities depended on Medicaid in 2010.

Ruby Waters, a Phoenix resident was born three years before Social Security was signed into law. While she was raising five children, her husband was shot in a hunting accident and her family received survivors’ benefits. Ruby said, "I don’t know what I would have done without Social Security. When I went to work, I only earned one dollar thirty cents an hour. It was tough but it was workable. Without Social Security I don’t know how it would have been."

“Medicaid is the primary public source of funding for health and mental health care services for persons with disabilities of all ages.  Social Security, Medicaid and Medicare must be protected to keep persons with disabilities healthy and leading independent and productive lives,” said Peri Jude Radecic, Executive Director of the Arizona Center for Disability Law.

Steve Farley, who represents Arizona’s Legislative District 28, said "Arizonans deserve better than the partisan bickering and posturing we have seen lately. We are calling on Congress to work across the aisle to protect the well-being of older Americans and defend our investment in Social Security and Medicare."

Doug Hart, President of the Arizona Alliance for Retired Americans said, “I worry about the future of retirement in this country.  People used to work until the day they died.  Seniors often lived in extreme poverty and bad health.  We’ve come a long way, and we can’t go back. … We call upon Senator Kyl to support retirees here in Arizona.”

View the full report here: http://bit.ly/vGcf3V.

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 Arizona Retiree Leader Reacts to Debt Ceiling Deal; Warns of Upcoming Threats to Social Security and Medicare

The following statement was issued today by Doug Hart, President of the Arizona Alliance for Retired Americans:

“Arizona retirees are relieved – at least for now – that Social Security and Medicare were not cut in this week’s debt ceiling agreement in Washington.  But retirees cannot sit back and think that this crisis is over.  The new law creates a so-called ‘Super-Committee’ on Capitol Hill that could, by the end of the year, recommend sweeping cuts in Social Security and Medicare.

“Arizona retirees need to keep a close, wary eye on this new congressional panel.  We cannot allow those who have never liked Social Security or Medicare to use this budget climate as political cover for ideological attacks on programs that have kept generations of seniors healthy and out of poverty.

Seniors and retirees will gather on Friday, August 5, 2011, at 3:15pm at the Armory Park Senior Center to celebrate Social Security’s 76^th birthday as well as react to the debt ceiling deal.  It is expected that 100 participants will attend.

“This week’s debt agreement failed to address the root causes of our deficit, our fundamentally-flawed tax and spending and policies. Social Security has not added one penny to our deficit – it is fully-funded by worker and employer payroll taxes.  Our deficits were not created by

Social Security checks that average just over $1,000 per month, nor do we have a national debt because of retirees who simply want to see a doctor or fill a prescription.

“My generation wants to lower the deficit.  We do not want a large debt to be the legacy we leave behind for our children and grandchildren.  But there is a right way and a wrong way to do this.  Members of the Arizona  Alliance will spend the coming months urging our state’s congressional delegation to not balance the budget on the backs of Arizona seniors.”

The Arizona Alliance for Retired Americans announces a fall luncheon honoring Congressman Grijalva.  Click here for more information and registration.

Arizona Retirees Upset with Senators Kyl & McCain on Key Budget Vote

“The Future of Retirement is on the Line”

The following statement was issued today by Doug Hart of the Arizona  Alliance for Retired Americans:

“Arizona retirees should be very concerned that Senators Kyl and McCain voted for a bill that could end the hopes and dreams of millions of Americans for a safe and secure retirement.  The 2012 budget plan by Rep. Paul Ryan (R-WI) cuts Social Security, raises the retirement age, puts insurance companies in charge of privatized Medicare, and lets governors decide who gets nursing home care.

“We should not balance the budget on the backs of our nation’s seniors.  Instead, we should address the root causes of our deficit – the badly-unneeded tax breaks for wealthy individuals and corporations.  We must make sure we protect and strengthen Social Security and Medicare, two great American success stories that have helped generations of seniors stay healthy and out of poverty.

“The future of retirement is on the line.  On behalf of the Arizona Alliance for Retired Americans, I am disappointed that Senators Kyl and McCain did not stand up for the needs of current and future retirees here in Arizona.”

# # #

Seniors in Arizona are increasingly concerned when they hear about proposals to do away with Medicare as we know it and to institute “vouchers.” They should be concerned, and they should also know where these proposals are coming from.

Although Representatives like Congressman Paul Gosar claims his intention is to “preserve and protect Medicare for today and tomorrow,” this proves to be lip service when his proposals and votes go in completely the opposite direction.

Last month, Arizona Representative Gosar joined Representatives Schweikert, Quayle, Flake, and Franks in voting “yes” on the GOP budget bill that would end the hopes and dreams of millions of Americans for a safe and secure retirement.

Here are just a few of the things the GOP budget proposal does:

• Ends Medicare as we know it by privatizing the program (turning care over to insurance companies who have shown they care more about profits than care),
• Drastically increases out-of-pocket health care payments for current and future retirees,
• Eliminates many new Medicare benefits by repealing the Affordable Care Act
• Promotes rationing by private insurance companies,
• Guts Medicaid by slashing $1.4 trillion or 1/3 of the funding from the program thereby endangering long-term care services for seniors and the disabled,
• Initiates fast-track cuts to Social Security.

Unfortunately, the GOP budget proposal that Rep. Gosar supports does not contain one provision that promotes shared sacrifice from wealthy Americans, large corporations and oil companies. On the contrary, it gives these groups even bigger tax breaks and looks to the people struggling most to bear the burden of the federal deficit – all in the name of “shared sacrifice.”

Seniors are struggling. Oil companies are not. Yet Republicans like Gosar keep voting to hand billions in giveaways to oil companies, while ending Medicare for seniors.

Arizona has a large and growing senior population – are they going to stand up for the programs like Medicare that make our country great?

America is not going bankrupt because of a senior at a doctor’s office.  It has much more to do with the big tax breaks we give to millionaires and to many corporations that do not even pay any taxes.

In ending Medicare as we know it, the GOP plan turns it over to private insurance companies and gives future retirees coupons that would only cover part of their care and dramatically increase their out-of-pocket expenses.

A report that came out by The Center for Economic and Policy Research (CEPR) last week estimated that individuals born in 1957 would need $182,000 by the time they retire at 65 to pay the additional costs imposed by the Republican plan if they live to eighty-four. The Congressional Budget Office reported that new Medicare beneficiaries would end up paying 68% of the cost of their health insurance by 2030 versus the current 25% under Medicare.

Medicare was created in 1965 so seniors would not have to live in poor health and poverty.  The GOP budget plan, supported by Arizona’s Paul Gosar, abandons this long-standing American tradition. We really should not deny future retirees access to affordable health care, which they contribute to all their working lives.

Retirees and working Arizonans agree that it is vital for measures to be taken to contain the double-digit increases in health care, but the GOP budget does nothing to address costs.  Rather, it shifts those costs to seniors who, in many cases, will not get medical treatments because they are not affordable.

***
Doug Hart is President of the Arizona Alliance for Retired Americans, a non-profit, non-partisan organization representing over 35,000 retirees statewide.    The Alliance for Retired Americans is committed to advocacy and education to ensure economic security for all retirees.

Arizona Retirees Upset with U.S. House Budget Vote

“The Future of Retirement is on the Line”

The following statement was issued today by Doug Hart, President of the Arizona Alliance for Retired Americans:

“Arizona retirees should very concerned by a vote in the U.S. House that could end the hopes and dreams of millions of Americans for a safe and secure retirement.  The 2012 budget plan by Rep. Paul Ryan (R-WI) cuts Social Security, raises the retirement age, puts insurance companies in charge of privatized Medicare, and lets governors decide who gets nursing home care.

“In the Arizona delegation, Reps. Schweikert, Gosar, Franks, Flake, and Quayle voted in favor of the bill, while Reps. Pastor and Grijalva voted against it.  The bill passed on a 235-193 vote.

“We should not balance the budget on the backs of our nation’s seniors.  Instead, we should address the root causes of our deficit – the badly-unneeded tax breaks for wealthy individuals and corporations.  We must make sure we protect and strengthen Social Security and Medicare, two great American success stories that have helped generations of seniors stay healthy and out of poverty.

“The future of retirement is on the line.  As this measure now moves on to the U.S. Senate, the Arizona Alliance for Retired Americans urges Senators Kyl and McCain to stand up for the needs of current and future retirees here in ARizona.”

Arizona retirees will hold events the week of April 25 across the state to protest this serious threat to retirement in America.  More details on the events will be released next week.

The following statement was issued today by Edward F. Coyle, Executive Director of the Alliance for Retired Americans:

“Paul Ryan's budget proposal takes better care of CEOs in corporate towers than it does seniors in nursing homes. 

“His plan tries to hide its cold-hearted details behind seemingly innocuous buzzwords like ‘vouchers’ and ‘block grants.’  But the reality is that ‘voucher’ is Ryan-speak for turning Medicare over to the big insurance companies, and ‘block grant’ is Ryan-speak for saying that Medicaid should be run by Republican governors across the country. 

“People of all ages have seen what happens when the insurance companies call the shots - they choose their profits over our health, the corporate interest over the public interest.  Moreover, we have seen what has been happening in state capitals over the past few months.  Why would anyone want to put affordable access to nursing homes and long-term care into the hands of Scott Walker, John Kasich, Mitch Daniels, or Chris Christie?

“In the name of deficit reduction, Paul Ryan goes way too far.  What he wants is to fundamentally change our nation’s values – give tax cuts to the wealthy, but yet make it harder for seniors and low-income children to see a doctor.

 “The Alliance for Retired Americans, with its 4 million members organized in 1400 local chapters, will spend the month of April organizing grassroots actions around the country to try to stop this cold-hearted plan.  We have to tell Americans - particularly seniors - about just how dangerous Paul Ryan's budget proposal is. 

“To keep America as a nation where we still lend a helping hand to the young and the old, and to the sick and the poor, we must stop these cuts to Medicare and Medicaid.”

March 25, 2011 - On Tuesday and Wednesday of this week, Arizona retirees gathered together to celebrate the one-year anniversary of Health Care Reform.

The Affordable Care Act: One Year Later and Beyond

The Affordable Care Act Provides Tools To Crack Down On Waste, Fraud And Abuse In Medicare. The Act provides an additional $300 million for stronger enforcement and gives the government more authority to increase oversight of companies participating in Medicare and Medicaid. [Associated Press, 5/13/10]

The Government Recovered Record $4 Billion From Fraud Prevention And Enforcement. The Obama administration created the Health Care Fraud Prevention & Enforcement Action Team (HEAT) in 2009 to prevent waste, fraud and abuse in Medicare and expanded the Medicare Fraud Strike Force teams. The teams were in seven cities and imprisoned 146 individuals and racked up 140 indictments against 284 defendants who billed Medicare for almost $600 million, according to Department of Health and Human Services. The Affordable Care Act also includes tools to crack down on Medicare waste, fraud and abuse. [The Hill, 1/24/11]

The Affordable Care Act Ends Medicare Overpayments To Insurance Companies. The Affordable Care Act ends Medicare Advantage overpayments to private insurance companies. In 2009, payments for Medicare Advantage plans were 14 percent higher than what traditional Medicare would spend for similar beneficiaries. [AARP, Fact Sheet: What the Health Care Law Does Now for People 65+; MedPac, March 2009]

Under The Affordable Care Act, 3 Million Seniors In The Donut Hole Received $250 Rebate Last Year. The Affordable Care Act provides relief to seniors who fall in the Medicare prescription drug “donut hole.” In 2010, 3 million seniors received a $250 rebate check to help with the cost of prescription drugs. In 2011, seniors who hit the donut hole are eligible for $1,500 in savings. By 2020, the donut hole will be closed completely. [The Hill, 1/21/11]

The Affordable Care Act Provides 44 Million Seniors With Free Preventive Care Benefits Including An Annual Wellness Exam. Under the Affordable Care Act, 44.1 million seniors no longer have to pay for Medicare-approved preventive care services. The preventive benefits available in 2011 include a free annual wellness visit and screenings for bone density, diabetes and certain cancers. That means health problems can be detected and treated sooner. [AARP, Fact Sheet: The Health Care Law and Medicare]

The Affordable Care Act Provides Expanded Medicaid Services And Options That Can Help Seniors With Home Care. According to the Kaiser Family Foundation, the Act provides “states with new options for offering home and community-based services through a Medicaid state plan.” It also establishes the “Community First Choice Option in Medicaid to provide community-based attendant supports and services to individuals with disabilities who require an institutional level of care.” States will receive a higher federal matching rate to help with the costs of the program. [Kaiser Family Foundation, Summary of the Health Reform Law]

Social Security pays out $12.9 billion dollars each year to almost 1 million Arizona’s residents each year, according to a new report.  1 out of 6 Arizona residents receive Social Security.

The report was cited by speakers at an event last month at the Armory Park Senior Center.  The event was a luncheon organized to celebrate 75 years of Social Security.  The host of the event is the Arizona Alliance for Retired Americans, a non-profit group representing senior issues in Arizona and nationwide.    Over 200 local seniors are expected to attend the event.

The report analyzes the benefits of Social Security on the state and its congressional districts including: the amount of money paid out in benefits; the number and type of people receiving benefits; and the percentage of residents receiving benefits.  

According to the report, the elderly poverty rate would increase from 9.1% to 40.3% without Social Security.  The average benefit for retired workers is $14,300 annually.

Social Security is the most important source of income for the nearly 132,800 children living in Arizona’s grandfamilies, which are households headed by a grandparent or other relative.  Social security provides benefits to over 73,200 Arizona children.

The report states that Social Security is the most valuable disability and life insurance protection for most Arizona workers.  An estimated 3 out or 10 working aged men and 1 out of 4 working-aged women will become severely disabled before reaching retirement age.