COVID Relief Deal Will Help Struggling Seniors
***THIS IS AN UPDATE OF A BLOG POST ORIGINALLY
PUBLISHED ON FRIDAY, DECEMBER 18, 2020***
While not as comprehensive as advocates had hoped, the new $900B COVID relief deal announced by Congressional leadership includes some much-needed help for American seniors. Here is what is in the relief bill and why it matters for seniors:
STIMULUS PAYMENTS
After initial resistance from Republicans, the relief package now includes another round of stimulus payments, $600 for adults and $600 per child for individuals earning up to $75,000. Though not as generous as last summer’s $1,200 payments, any additional money would no doubt help seniors living on fixed incomes who face rising costs for everything from housing to prescription drugs. Most Social Security beneficiaries will receive their stimulus payments automatically, though some will get paid sooner than others.
“How fast that money is received is largely dependent on whether the recipient already uses direct deposit for their monthly benefit payment. If they do, the stimulus cash will likely be credited to their account automatically. If Social Security benefits are sent by mail, however, a longer wait is expected.” – CNBC, 12/19/20
UNEMPLOYMENT ASSISTANCE
In its current form, the relief package includes extended unemployment benefits in the amount of $300 per week. Additional unemployment assistance will be a lifeline for older workers who may have been furloughed or fallen ill with COVID, who are not yet eligible for Social Security.
RENTAL ASSISTANCE
The proposal as it now stands provides $25 billion in emergency assistance for Americans struggling to pay rent; it would also extend a ban on evictions through January, 2021. This could represent real relief to seniors, who have been renting homes in greater numbers during the past decade or so.
VACCINE FUNDING
According to The Hill newspaper, “The agreement includes $20 billion for the purchase of COVID vaccines, $8 billion for vaccine distribution, $20 billion for states to conduct testing and $20 billion in extra federal relief for health care providers.” This is good news for long-term care residents and staff – as well as for older Americans not in long-term – who await inoculation.
WHAT THE BILL DOESN’T INCLUDE
The relief deal excludes other high-priority items that Democrats have advocated – especially additional federal aid to state and local governments reeling from the COVID crisis. When the 117th Congress convenes in January, the National Committee also would like lawmakers to fix the “notch” in Social Security benefits for workers turning 60, and provide Social Security beneficiaries with an emergency bump in benefits. NCPSSM also supports a bill from Rep. Peter DeFazio (D-OR) to enact a 3% Social Security cost-of-living adjustment to make up for paltry COLAs in recent years (including the meager 1.3% scheduled for 2021).
Nevertheless, the COVID package should be “welcome relief to millions of Americans, including seniors who have been hurt the most by the pandemic,” said Dan Adcock, the National Committee’s director of government relations and policy.
Are We There Yet? American Seniors Anxiously Await COVID Relief
Congress was once again unable to reach a deal on COVID relief this week, delaying much-needed aid to struggling Americans – especially seniors. The pandemic has hit seniors especially hard, both physically and financially. Lawmakers came close to agreement this week on a $900 billion relief package, but do not expect to have a final agreement until next week.
Republicans threw in a monkey wrench yesterday, with one GOP Senator pushing to block the incoming Biden administration and the Federal Reserve from reviving expired loan programs for struggling businesses.
“We almost have a bipartisan COVID package, but at the last-minute Republicans are making a demand that WAS NEVER MENTIONED AS KEY TO THE NEGOTIATIONS. They want to block the Fed from helping the economy under Biden. It’s the reason we don’t have a deal.” – Sen. Brian Schatz (D-HI) on Twitter
If Congressional negotiators can work through this latest demand, Americans may finally receive the pandemic relief they so urgently need – and have been waiting for – since lawmakers passed the most recent COVID aid bill last spring.
Here is what is in the tentative agreement and why it matters for seniors:
STIMULUS PAYMENTS
After initial resistance from Republicans, the proposed package now includes another round of stimulus payments, reportedly $600 for adults and $600 per child for individuals earning up to $75,000. Though not as generous as last summer’s $1,200 payments, any additional money would no doubt help seniors living on fixed incomes who face rising costs for everything from housing to prescription drugs. Social Security beneficiaries probably will not have to file income tax returns to get their stimulus checks. When the first stimulus payments were rolled out last summer, seniors originally were told that they would be required to file income taxes in order to receive stimulus payments – though that policy was later clarified so that Social Security recipients were eligible automatically.
UNEMPLOYMENT ASSISTANCE
In its current form, the relief package includes extended unemployment benefits in the amount of $300 per week for ten weeks. Democrats have been pushing for 16 weeks, but Republicans have not yielded. Additional unemployment assistance will be a lifeline for older workers who may have been furloughed or fallen ill with COVID, who are not yet eligible for Social Security.
RENTAL ASSISTANCE
The proposal as it now stands provides $25 billion in emergency assistance for Americans struggling to pay rent; it would also extend a ban on evictions through January, 2021. This could represent real relief to seniors, who have been renting homes in greater numbers during the past decade or so.
FEDERAL SENIORS’ PROGRAMS
Lawmakers are planning to wrap the COVID relief package and a continuing resolution for federal spending for fiscal 2021 into one “omnibus” bill. The funding levels for the Social Security Administration, the home heating assistance program (LIHEAP), and Older Americans Act programs that benefit seniors (especially the elderly and poor), are not certain at this point. The National Committee has been advocating for funding increases for these programs because in the past they have been flat-lined or cut, while the senior population – and their corresponding needs – have continued to grow.
WHAT THE BILL DOESN’T INCLUDE
So far, the relief bill excludes other high-priority items that Democrats have advocated – especially additional federal aid to state and local governments reeling from the COVID crisis. When the 117th Congress convenes in January, the National Committee also would like lawmakers to fix the “notch” in Social Security benefits for workers turning 60, and provide Social Security beneficiaries with an emergency bump in benefits. NCPSSM also supports a bill from Rep. Peter DeFazio (D-OR) to enact a 3% Social Security cost-of-living adjustment to make up for paltry COLAs in recent years (including the meager 1.3% scheduled for 2021).
“GUARDEDLY OPTIMISTIC”
As for the COVID relief bill expected to be solidified next week, National Committee legislative director Dan Adcock says that “there are some things in the package that we don’t yet know enough about and are unable to judge.” But Adcock is “guardedly optimistic” that a COVID relief package will pass before the holidays. “From what we know at this point, we think overall it is good for seniors.”
Warnock, Ossoff Get Boost from National Committee
Georgia Senate candidates Raphael Warnock and Jon Ossoff are getting a boost from one of the nation’s leading seniors’ advocacy groups. The National Committee to Preserve Social Security and Medicare has launched a voter outreach campaign in Georgia to encourage turnout and promote both candidates as champions for seniors. The campaign includes radio ads in the Atlanta market, postcard mailings to thousands of National Committee members and supporters across Georgia, and social media outreach to the state’s voters.
“We need the leadership, vision and determination of Raphael Warnock and Jon Ossoff to fight for seniors in the U.S. Senate. They will work to protect Social Security and Medicare from harmful proposals to cut the benefits Georgians have earned. They will be voices to strengthen the critical lifelines of Social Security and Medicare during the COVID pandemic, when older Georgians are counting on their earned benefits more than ever.” – Max Richtman, president and CEO, National Committee to Preserve Social Security and Medicare.
Georgia has 1.3 million Social Security beneficiaries and 1.8 million Medicare enrollees. The average Social Security benefit in Georgia is $1,500 per month. Those benefits provide $45.3 billion in annual economic stimulus to communities across the state.
The National Committee has made a five-figure advertising buy on three Atlanta radio stations beginning December 15th through the runoff election on January 5th. “Only two candidates are ready to put Georgia seniors’ health and economic well-being first, Jon Ossoff and Rev. Raphael Warnock,” the radio ad tells voters. Postcards are being mailed to more than 7,000 National Committee members in Georgia, bearing the message, “Your best future starts with your vote for John Ossoff and Raphael Warnock.”
Warnock and Ossoff earned the National Committee’s endorsement by making clear that they will be champions for seniors in the U.S. Senate. Rev. Warnock has said that he will stand up to those who want to cut Social Security and Medicare after giving “trillion-dollar tax breaks to their corporate friends.” Jon Ossoff pledged to “strengthen and protect these earned benefits” that retirees have “paid into for their entire lives.” Both candidates will fight for lower prescription drug costs by empowering Medicare to negotiate prices directly with Big Pharma.
On the other side, incumbent GOP Senator David Perdue pays lip service to protecting Social Security while suggesting that benefits for future retirees may have to be cut. He also has said that Social Security, Medicare and Medicaid should no longer be protected as mandatory spending programs. For her part, Senator Kelly Loeffler endorsed President Trump’s reckless payroll tax deferral of last August, which reduced the flow of revenue into Social Security and will force cash-strapped workers to repay those funds in early 2021.
“Wins by Warnock and Ossoff would not only be a victory for Georgians. It would give President-elect Biden and his party the power in the U.S. Senate to actually get things done for seniors after four years of obstruction. With a new majority, we can protect and expand Social Security, Medicare, Medicaid, and the Affordable Care Act – and tame the soaring prescription drug prices that force too many seniors to cut pills in half or to choose between food and medicine. The financial and health security of older Americans literally rests on the outcome of this election. Georgia voters have the power.” – Max Richtman
******************************************************************
View the postcard mailing to National Committee members in Georgia.
Listen to the National Committee’s radio spot to air in the metro Atlanta market.
Trump’s Latest Ploy to Deny Disability Benefits
The Trump administration has been trying for four years to find crafty ways to deprive workers of their Social Security Disability Insurance (SSDI) benefits. Recent reporting indicates that the administration is still at it – even in the waning days of Trump’s presidency. This week, The Hill reported:
“The Social Security Administration (SSA) sent the Trump administration’s Office of Management and Budget (OMB) a proposal that — if similar to a version leaked earlier this year — will bar Social Security benefits from hundreds of thousands of Americans. The document that leaked suggests the proposal could ultimately prevent as many as 500,000 Americans from receiving benefits.” – The Hill, 12/7/20
Simply put, the proposal would make it harder for older workers to qualify for SSDI benefits. Under current law, the Social Security Administration (SSA) must consider an applicant’s age in determining whether that worker “meets the statutory definition of disability.” The Trump administration’s proposal would diminish age as an eligibility factor for receiving benefits.
“The proposed rule would no longer assume age seriously affects a person’s ability to adapt to simple, entry-level work. It would raise the age at which education and work experience are considered in determining eligibility to 55, from 50.” – Wall Street Journal, 1/10/20
The assumption behind the proposal is: in an increasingly service-oriented economy where people are living longer, middle-aged workers should be able to find new jobs compatible with their disabilities. But, as disability advocates have pointed out, “improvements in average health and life expectancy vary sharply by socioeconomic group and education level.” The proposal, then, would punish disabled workers on the lower rungs of the ladder by denying them disability benefits.
The new proposal is the latest in a fusillade of rules from the Trump administration targeting workers with disabilities. Most recently, Trump’s SSA began finalizing two insidious new rules. One rule would replace the administrative law judges (ALJs) who decide disability appeal cases with politically-motivated agency lawyers. ALJ’s are impartial; SSA attorneys may try to deny benefits based on ideology rather than the needs of disabled workers.
The second rule would add a new level of Continuing Disability Reviews (CDRs), imposing an unnecessary burden on disabled beneficiaries to prove that they are still eligible — and may cause some to lose their benefits altogether.
The ranking member of the Senate Finance Committee, Sen. Ron Wyden (D-OR), said that these new rules “would weaken the promise of Social Security for Americans struggling with a disability.”
The incoming Biden administration could rescind Trump’s ALJ and CDR rules, which are scheduled to take effect on Dec.16. As for the new proposal that would make it harder for older workers to obtain SSDI benefits, The Hill reports that it could “slip through” the regulatory process unless SSA and the Office of Management and Budget decide to “respect the formal regulatory process.” If the new proposal is enacted, it would then be up to President-elect Biden or Congress to reverse it.
Seniors’ Priorities for the Lame Duck Congressional Session
Congress is now in ‘lame duck’ session until January. Though this is normally a time when expectations for Congressional action are low, the National Committee expects our elected representatives to act on behalf of seniors and other struggling Americans hit hard by the pandemic. NCPSSM president and CEO Max Richtman has just sent a letter to Congress requesting action on several high priority issues for seniors.
“On behalf of the National Committee to Preserve Social Security and Medicare’s millions of members and supporters, I am writing to urge you and your colleagues to prioritize the needs of America’s seniors as you consider funding legislation during the remaining days of the 116th Congress.” – Max Richtman, president and CEO, National Committee to Preserve Social Security and Medicare
Seniors are the hardest hit by the coronavirus pandemic. Eight out of 10 deaths from COVID in the U.S. have been in adults 65 years old and older. Whether as part of an omnibus funding bill, continuing resolution or COVID relief package, The National Committee is urging lawmakers to pass urgently needed measures for seniors, including:
The “Notch”
Unless Congress takes action, workers born in 1960 and 1961 will take a hit in their future Social Security retirement benefits, because of the Corona-induced decline in the average wages used to calculate those benefits. We support Congressman John Larson’s “Social Security COVID Correction and Equity Act” which would correct this notch in benefits for this age group without affecting other beneficiaries.
Social Security Boost
The 2021 Social Security cost-of-living adjustment (COLA) is a scant 1.3% (or $20 more per month for the average beneficiary). This is not sufficient to mitigate the financial pain that many seniors are experiencing during the pandemic. Rep. Peter DeFazio has introduced a bill (H.R. 8598) to provide beneficiaries with a 3% monthly increase (or a $250 per month flat increase), which would go a long way toward helping seniors meet their expenses during the current crisis.
Payroll Tax Deferrals
In August, President Trump issued an executive order allowing employers to defer workers’ payroll tax contributions for the rest of the year. Between January 1, 2021 and April 30, 2021, these employees will be required to pay back their deferred payroll taxes. As a result, the amount of their FICA taxes will double for the first four months of 2021. The National Committee supports easing the burden for workers affected by this hardship.
Medicare & Medicaid Extenders
The National Committee urges Congress to extend a handful of protections for lower-income Medicare and Medicaid beneficiaries, including ‘Money Follows the Person’ (which provides funding for states to help skilled nursing care patients to remain in their homes) and impoverishment protections for the spouses of Medicaid recipients receiving long-term care.
Outlook
Some of the items on this lame-duck wish list could be incorporated in to a continuing resolution (CR) that Congress must pass by December 11th in order to keep the government funded. Others would require separate legislation. Any measures improving Social Security benefits would need to clear a 60-vote hurdle in the Senate. Based on what we’ve seen so far, GOP Majority Leader Mitch McConnell is unlikely to clear the path for any legislation improving Social Security. The Senate runoff elections in Georgia will determine whether he will maintain the power to obstruct during the 117th Congress, or whether a new majority which cares about seniors’ needs will take over.
*****************************************************
For more news and insight, visit our Lame Duck Session webpage.
COVID Relief Deal Will Help Struggling Seniors
***THIS IS AN UPDATE OF A BLOG POST ORIGINALLY
PUBLISHED ON FRIDAY, DECEMBER 18, 2020***
While not as comprehensive as advocates had hoped, the new $900B COVID relief deal announced by Congressional leadership includes some much-needed help for American seniors. Here is what is in the relief bill and why it matters for seniors:
STIMULUS PAYMENTS
After initial resistance from Republicans, the relief package now includes another round of stimulus payments, $600 for adults and $600 per child for individuals earning up to $75,000. Though not as generous as last summer’s $1,200 payments, any additional money would no doubt help seniors living on fixed incomes who face rising costs for everything from housing to prescription drugs. Most Social Security beneficiaries will receive their stimulus payments automatically, though some will get paid sooner than others.
“How fast that money is received is largely dependent on whether the recipient already uses direct deposit for their monthly benefit payment. If they do, the stimulus cash will likely be credited to their account automatically. If Social Security benefits are sent by mail, however, a longer wait is expected.” – CNBC, 12/19/20
UNEMPLOYMENT ASSISTANCE
In its current form, the relief package includes extended unemployment benefits in the amount of $300 per week. Additional unemployment assistance will be a lifeline for older workers who may have been furloughed or fallen ill with COVID, who are not yet eligible for Social Security.
RENTAL ASSISTANCE
The proposal as it now stands provides $25 billion in emergency assistance for Americans struggling to pay rent; it would also extend a ban on evictions through January, 2021. This could represent real relief to seniors, who have been renting homes in greater numbers during the past decade or so.
VACCINE FUNDING
According to The Hill newspaper, “The agreement includes $20 billion for the purchase of COVID vaccines, $8 billion for vaccine distribution, $20 billion for states to conduct testing and $20 billion in extra federal relief for health care providers.” This is good news for long-term care residents and staff – as well as for older Americans not in long-term – who await inoculation.
WHAT THE BILL DOESN’T INCLUDE
The relief deal excludes other high-priority items that Democrats have advocated – especially additional federal aid to state and local governments reeling from the COVID crisis. When the 117th Congress convenes in January, the National Committee also would like lawmakers to fix the “notch” in Social Security benefits for workers turning 60, and provide Social Security beneficiaries with an emergency bump in benefits. NCPSSM also supports a bill from Rep. Peter DeFazio (D-OR) to enact a 3% Social Security cost-of-living adjustment to make up for paltry COLAs in recent years (including the meager 1.3% scheduled for 2021).
Nevertheless, the COVID package should be “welcome relief to millions of Americans, including seniors who have been hurt the most by the pandemic,” said Dan Adcock, the National Committee’s director of government relations and policy.
Are We There Yet? American Seniors Anxiously Await COVID Relief
Congress was once again unable to reach a deal on COVID relief this week, delaying much-needed aid to struggling Americans – especially seniors. The pandemic has hit seniors especially hard, both physically and financially. Lawmakers came close to agreement this week on a $900 billion relief package, but do not expect to have a final agreement until next week.
Republicans threw in a monkey wrench yesterday, with one GOP Senator pushing to block the incoming Biden administration and the Federal Reserve from reviving expired loan programs for struggling businesses.
“We almost have a bipartisan COVID package, but at the last-minute Republicans are making a demand that WAS NEVER MENTIONED AS KEY TO THE NEGOTIATIONS. They want to block the Fed from helping the economy under Biden. It’s the reason we don’t have a deal.” – Sen. Brian Schatz (D-HI) on Twitter
If Congressional negotiators can work through this latest demand, Americans may finally receive the pandemic relief they so urgently need – and have been waiting for – since lawmakers passed the most recent COVID aid bill last spring.
Here is what is in the tentative agreement and why it matters for seniors:
STIMULUS PAYMENTS
After initial resistance from Republicans, the proposed package now includes another round of stimulus payments, reportedly $600 for adults and $600 per child for individuals earning up to $75,000. Though not as generous as last summer’s $1,200 payments, any additional money would no doubt help seniors living on fixed incomes who face rising costs for everything from housing to prescription drugs. Social Security beneficiaries probably will not have to file income tax returns to get their stimulus checks. When the first stimulus payments were rolled out last summer, seniors originally were told that they would be required to file income taxes in order to receive stimulus payments – though that policy was later clarified so that Social Security recipients were eligible automatically.
UNEMPLOYMENT ASSISTANCE
In its current form, the relief package includes extended unemployment benefits in the amount of $300 per week for ten weeks. Democrats have been pushing for 16 weeks, but Republicans have not yielded. Additional unemployment assistance will be a lifeline for older workers who may have been furloughed or fallen ill with COVID, who are not yet eligible for Social Security.
RENTAL ASSISTANCE
The proposal as it now stands provides $25 billion in emergency assistance for Americans struggling to pay rent; it would also extend a ban on evictions through January, 2021. This could represent real relief to seniors, who have been renting homes in greater numbers during the past decade or so.
FEDERAL SENIORS’ PROGRAMS
Lawmakers are planning to wrap the COVID relief package and a continuing resolution for federal spending for fiscal 2021 into one “omnibus” bill. The funding levels for the Social Security Administration, the home heating assistance program (LIHEAP), and Older Americans Act programs that benefit seniors (especially the elderly and poor), are not certain at this point. The National Committee has been advocating for funding increases for these programs because in the past they have been flat-lined or cut, while the senior population – and their corresponding needs – have continued to grow.
WHAT THE BILL DOESN’T INCLUDE
So far, the relief bill excludes other high-priority items that Democrats have advocated – especially additional federal aid to state and local governments reeling from the COVID crisis. When the 117th Congress convenes in January, the National Committee also would like lawmakers to fix the “notch” in Social Security benefits for workers turning 60, and provide Social Security beneficiaries with an emergency bump in benefits. NCPSSM also supports a bill from Rep. Peter DeFazio (D-OR) to enact a 3% Social Security cost-of-living adjustment to make up for paltry COLAs in recent years (including the meager 1.3% scheduled for 2021).
“GUARDEDLY OPTIMISTIC”
As for the COVID relief bill expected to be solidified next week, National Committee legislative director Dan Adcock says that “there are some things in the package that we don’t yet know enough about and are unable to judge.” But Adcock is “guardedly optimistic” that a COVID relief package will pass before the holidays. “From what we know at this point, we think overall it is good for seniors.”
Warnock, Ossoff Get Boost from National Committee
Georgia Senate candidates Raphael Warnock and Jon Ossoff are getting a boost from one of the nation’s leading seniors’ advocacy groups. The National Committee to Preserve Social Security and Medicare has launched a voter outreach campaign in Georgia to encourage turnout and promote both candidates as champions for seniors. The campaign includes radio ads in the Atlanta market, postcard mailings to thousands of National Committee members and supporters across Georgia, and social media outreach to the state’s voters.
“We need the leadership, vision and determination of Raphael Warnock and Jon Ossoff to fight for seniors in the U.S. Senate. They will work to protect Social Security and Medicare from harmful proposals to cut the benefits Georgians have earned. They will be voices to strengthen the critical lifelines of Social Security and Medicare during the COVID pandemic, when older Georgians are counting on their earned benefits more than ever.” – Max Richtman, president and CEO, National Committee to Preserve Social Security and Medicare.
Georgia has 1.3 million Social Security beneficiaries and 1.8 million Medicare enrollees. The average Social Security benefit in Georgia is $1,500 per month. Those benefits provide $45.3 billion in annual economic stimulus to communities across the state.
The National Committee has made a five-figure advertising buy on three Atlanta radio stations beginning December 15th through the runoff election on January 5th. “Only two candidates are ready to put Georgia seniors’ health and economic well-being first, Jon Ossoff and Rev. Raphael Warnock,” the radio ad tells voters. Postcards are being mailed to more than 7,000 National Committee members in Georgia, bearing the message, “Your best future starts with your vote for John Ossoff and Raphael Warnock.”
Warnock and Ossoff earned the National Committee’s endorsement by making clear that they will be champions for seniors in the U.S. Senate. Rev. Warnock has said that he will stand up to those who want to cut Social Security and Medicare after giving “trillion-dollar tax breaks to their corporate friends.” Jon Ossoff pledged to “strengthen and protect these earned benefits” that retirees have “paid into for their entire lives.” Both candidates will fight for lower prescription drug costs by empowering Medicare to negotiate prices directly with Big Pharma.
On the other side, incumbent GOP Senator David Perdue pays lip service to protecting Social Security while suggesting that benefits for future retirees may have to be cut. He also has said that Social Security, Medicare and Medicaid should no longer be protected as mandatory spending programs. For her part, Senator Kelly Loeffler endorsed President Trump’s reckless payroll tax deferral of last August, which reduced the flow of revenue into Social Security and will force cash-strapped workers to repay those funds in early 2021.
“Wins by Warnock and Ossoff would not only be a victory for Georgians. It would give President-elect Biden and his party the power in the U.S. Senate to actually get things done for seniors after four years of obstruction. With a new majority, we can protect and expand Social Security, Medicare, Medicaid, and the Affordable Care Act – and tame the soaring prescription drug prices that force too many seniors to cut pills in half or to choose between food and medicine. The financial and health security of older Americans literally rests on the outcome of this election. Georgia voters have the power.” – Max Richtman
******************************************************************
View the postcard mailing to National Committee members in Georgia.
Listen to the National Committee’s radio spot to air in the metro Atlanta market.
Trump’s Latest Ploy to Deny Disability Benefits
The Trump administration has been trying for four years to find crafty ways to deprive workers of their Social Security Disability Insurance (SSDI) benefits. Recent reporting indicates that the administration is still at it – even in the waning days of Trump’s presidency. This week, The Hill reported:
“The Social Security Administration (SSA) sent the Trump administration’s Office of Management and Budget (OMB) a proposal that — if similar to a version leaked earlier this year — will bar Social Security benefits from hundreds of thousands of Americans. The document that leaked suggests the proposal could ultimately prevent as many as 500,000 Americans from receiving benefits.” – The Hill, 12/7/20
Simply put, the proposal would make it harder for older workers to qualify for SSDI benefits. Under current law, the Social Security Administration (SSA) must consider an applicant’s age in determining whether that worker “meets the statutory definition of disability.” The Trump administration’s proposal would diminish age as an eligibility factor for receiving benefits.
“The proposed rule would no longer assume age seriously affects a person’s ability to adapt to simple, entry-level work. It would raise the age at which education and work experience are considered in determining eligibility to 55, from 50.” – Wall Street Journal, 1/10/20
The assumption behind the proposal is: in an increasingly service-oriented economy where people are living longer, middle-aged workers should be able to find new jobs compatible with their disabilities. But, as disability advocates have pointed out, “improvements in average health and life expectancy vary sharply by socioeconomic group and education level.” The proposal, then, would punish disabled workers on the lower rungs of the ladder by denying them disability benefits.
The new proposal is the latest in a fusillade of rules from the Trump administration targeting workers with disabilities. Most recently, Trump’s SSA began finalizing two insidious new rules. One rule would replace the administrative law judges (ALJs) who decide disability appeal cases with politically-motivated agency lawyers. ALJ’s are impartial; SSA attorneys may try to deny benefits based on ideology rather than the needs of disabled workers.
The second rule would add a new level of Continuing Disability Reviews (CDRs), imposing an unnecessary burden on disabled beneficiaries to prove that they are still eligible — and may cause some to lose their benefits altogether.
The ranking member of the Senate Finance Committee, Sen. Ron Wyden (D-OR), said that these new rules “would weaken the promise of Social Security for Americans struggling with a disability.”
The incoming Biden administration could rescind Trump’s ALJ and CDR rules, which are scheduled to take effect on Dec.16. As for the new proposal that would make it harder for older workers to obtain SSDI benefits, The Hill reports that it could “slip through” the regulatory process unless SSA and the Office of Management and Budget decide to “respect the formal regulatory process.” If the new proposal is enacted, it would then be up to President-elect Biden or Congress to reverse it.
Seniors’ Priorities for the Lame Duck Congressional Session
Congress is now in ‘lame duck’ session until January. Though this is normally a time when expectations for Congressional action are low, the National Committee expects our elected representatives to act on behalf of seniors and other struggling Americans hit hard by the pandemic. NCPSSM president and CEO Max Richtman has just sent a letter to Congress requesting action on several high priority issues for seniors.
“On behalf of the National Committee to Preserve Social Security and Medicare’s millions of members and supporters, I am writing to urge you and your colleagues to prioritize the needs of America’s seniors as you consider funding legislation during the remaining days of the 116th Congress.” – Max Richtman, president and CEO, National Committee to Preserve Social Security and Medicare
Seniors are the hardest hit by the coronavirus pandemic. Eight out of 10 deaths from COVID in the U.S. have been in adults 65 years old and older. Whether as part of an omnibus funding bill, continuing resolution or COVID relief package, The National Committee is urging lawmakers to pass urgently needed measures for seniors, including:
The “Notch”
Unless Congress takes action, workers born in 1960 and 1961 will take a hit in their future Social Security retirement benefits, because of the Corona-induced decline in the average wages used to calculate those benefits. We support Congressman John Larson’s “Social Security COVID Correction and Equity Act” which would correct this notch in benefits for this age group without affecting other beneficiaries.
Social Security Boost
The 2021 Social Security cost-of-living adjustment (COLA) is a scant 1.3% (or $20 more per month for the average beneficiary). This is not sufficient to mitigate the financial pain that many seniors are experiencing during the pandemic. Rep. Peter DeFazio has introduced a bill (H.R. 8598) to provide beneficiaries with a 3% monthly increase (or a $250 per month flat increase), which would go a long way toward helping seniors meet their expenses during the current crisis.
Payroll Tax Deferrals
In August, President Trump issued an executive order allowing employers to defer workers’ payroll tax contributions for the rest of the year. Between January 1, 2021 and April 30, 2021, these employees will be required to pay back their deferred payroll taxes. As a result, the amount of their FICA taxes will double for the first four months of 2021. The National Committee supports easing the burden for workers affected by this hardship.
Medicare & Medicaid Extenders
The National Committee urges Congress to extend a handful of protections for lower-income Medicare and Medicaid beneficiaries, including ‘Money Follows the Person’ (which provides funding for states to help skilled nursing care patients to remain in their homes) and impoverishment protections for the spouses of Medicaid recipients receiving long-term care.
Outlook
Some of the items on this lame-duck wish list could be incorporated in to a continuing resolution (CR) that Congress must pass by December 11th in order to keep the government funded. Others would require separate legislation. Any measures improving Social Security benefits would need to clear a 60-vote hurdle in the Senate. Based on what we’ve seen so far, GOP Majority Leader Mitch McConnell is unlikely to clear the path for any legislation improving Social Security. The Senate runoff elections in Georgia will determine whether he will maintain the power to obstruct during the 117th Congress, or whether a new majority which cares about seniors’ needs will take over.
*****************************************************
For more news and insight, visit our Lame Duck Session webpage.