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"He is endangering the benefits that seniors rely on to survive, just to score political points," said Alex Lawson of Social Security Works.
An alliance of senior advocacy groups, progressive organizations, and labor unions demanded Wednesday that Congress quickly approve legislation to increase the debt limit without any conditions, warning the House GOP's pursuit of steep spending cuts is risking an "economic calamity" and imperiling key benefits.
In a letter shared exclusively with Common Dreams, Social Security Works, MoveOn, Indivisible, and nearly 30 other organizations implored Democratic and Republican congressional leaders "in the strongest possible terms to swiftly pass a clean debt limit bill."
"There are real disagreements among elected officials about the role of government, budgetary matters, and tax policy," the letter reads. "We understand that and welcome a robust debate and seeing where the American people stand. There's a time and place for that debate. This is not that time. The entire economy and the financial security of every working family is at stake."
The letter, also signed by the Alliance for Retired Americans and the AFL-CIO, comes days after House Speaker Kevin McCarthy (R-Calif.) said in a speech on Wall Street that his caucus is assembling and preparing to vote on legislation that would lift the debt ceiling for roughly a year while slashing federal spending and imposing punitive new work requirements on recipients of Medicaid and federal nutrition assistance.
But it's unclear whether McCarthy will even have enough votes to get such a measure through the GOP-controlled House, given that Democrats are unanimously opposed and some far-right Republicans have already criticized the outlined package, claiming it wouldn't cut spending aggressively enough.
"Kevin McCarthy is holding the debt limit hostage, and can't even get his caucus to agree on a ransom demand," Alex Lawson, executive director of Social Security Works, told Common Dreams. "He is endangering the benefits that seniors rely on to survive, just to score political points."
"The only solution," Lawson added, "is for McCarthy to release his hostage and work with Democrats to pass a clean debt limit."
"Only a clean debt limit bill is standing up for seniors and working families."
If Congress doesn't raise the debt ceiling—an arbitrary borrowing limit that progressives want abolished—the U.S. is expected to default on its debt sometime this summer, an outcome that experts say would be devastating for the U.S. and global economies.
A default could also have major implications for Social Security and Medicare, potentially causing payment delays and other disruptions.
In a memo released earlier this year, the National Committee to Preserve Social Security and Medicare (NCPSSM)—a signatory to Wednesday's letter—warned that "if Congress fails to raise or suspend the debt limit and allows the government to default on its legally binding financial obligations, an economic catastrophe would likely result and payment of Social Security, Medicare, and Medicaid benefits would be jeopardized."
"The Treasury Department must have cash to pay benefits when they are due," the group explained. "Every month, the Treasury Department is required by law to make over $90 billion in payments to the 65 million retirees, disabled workers, widows, widowers, children, and spouses who receive Social Security benefits. The Treasury may not have enough incoming revenue to make those payments without the authority to cash in these securities."
"Absent the legal authority to borrow beyond the current ceiling," NCPSSM added, "Social Security, Medicare, Medicaid, and other payments will not be made on time and in full unless Congress approves an increase in the debt limit."
\u201cIt's long past time for \n@SpeakerMcCarthy and @HouseGOP to prioritize protecting seniors, families, and people with disabilities over political gain! \n\n#BackOffOurBenefits\u201d— Social Security Works (@Social Security Works) 1681754240
House Republicans have previously floated plans to raise the Social Security retirement age—a move that would cut benefits across the board—but McCarthy insisted Monday that his caucus would not touch Social Security and Medicare in their debt limit proposal, which has yet to be finalized.
In their letter on Wednesday, the senior advocacy coalition recalled that "at this year's State of the Union, everyone stood up and clapped in agreement with President Joe Biden, signifying that they stand up for seniors and working people who rely on Social Security and Medicare."
"Only a clean debt limit bill is standing up for seniors and working families," the groups argued. "Certainly, cutting Social
Security or Medicare as a condition for raising the debt ceiling is not standing up for seniors. Nor is cutting Medicaid, SNAP, housing assistance, energy assistance, or any of the other myriad domestic programs that our families, retirees, and communities depend on to make ends meet."
"More fundamentally, risking an economic recession and threatening the financial security of every working family in this country would be a failure of Congress to fulfill its duty," the letter continued. "Congress raised the debt limit repeatedly without conditions during President Trump's four years in office. It should take that same step now, without delay. This should not be political. Rather, it is simply part of the job that everyone in Congress chose to seek."
On Wednesday morning, the bipartisan Problem Solvers Caucus released a plan to avert a U.S. default if the House GOP refuses to agree to a clean debt limit increase by this summer.
The proposal would suspend the debt ceiling through December 31 and "establish an independent commission—modeled after a Pentagon panel that determines which military bases to close—to recommend a package to stabilize the debt and deficit, which would be voted on by Congress," Axiosreported.
The White House quickly threw cold water on the proposal, with press secretary Karine Jean-Pierre saying that "our position continues to be not to negotiate... over a default."
Social Security Works tweeted that the White House is "absolutely right," calling the Problem Solvers Caucus' framework "a terrible plan" and cautioning that "a 'fiscal commission' is code for cutting Social Security and Medicare behind closed doors."
"Congress must pass a clean debt limit increase, with NO CUTS to Social Security, Medicare, Medicaid, or any other program," the group wrote.
Economic and climate justice groups on Tuesday applauded as U.S. President Joe Biden signed into law the Inflation Reduction Act, with advocates hailing the $740 billion investment in climate action, corporate tax reform, and healthcare as "landmark legislation" while they pledged to continue working to secure more ambitious reforms.
"It's law," Biden said as he signed the IRA, which includes a historic investment of $370 billion to expand renewable energy infrastructure, caps prescription drug costs for senior citizens, and pays for badly needed reforms by raising taxes on corporations.
As the bill was signed more than a year after Biden's original proposal for the Build Back Better Act, Rep. Cori Bush (D-Mo.) said the IRA "is a reminder that we must never stop fighting to address the climate crisis--because our planet and future is at stake."
\u201cThe Inflation Reduction Act is now \u2728officially\u2728 law!\n\nThe IRA will benefit our communities with the biggest investment in climate action. Today\u2019s signing is a reminder that we must never stop fighting to address the climate crisis \u2014 because our planet & future is at stake.\u201d— Congresswoman Cori Bush (@Congresswoman Cori Bush) 1660681552
"This bill is the biggest step forward on climate ever," Biden told the crowd gathered at the White House for the signing.
"More attention is still needed to address provisions included in the bill that could perpetuate harms communities face from fossil fuel pollution."
Lisa Frank of Environment America's Washington legislative office applauded the president and the Democratic Party for taking a "huge step" toward reducing U.S. carbon emissions.
The law is "a start to, not the culmination of, our work to reduce global warming pollution and ensure clean air, clean water, and the preservation of open spaces," said Frank.
Union of Concerned Scientists president Johanna Chao Kreilick said that by offering tax credits and rebates for the use of renewable energy sources and creating an estimated nine million jobs over the next decade, the IRA "marks a win for future generations who deserve our best efforts to secure a safer and healthier world."
"More attention is still needed to address provisions included in the bill that could perpetuate harms communities face from fossil fuel pollution," she added. "The administration must follow up today's signing with strong environmental and public health rules that will help speed the transition to clean energy and reduce pollution that especially harms Black, Brown, Indigenous, and low-income communities."
"Today's bill signing marks a success--one that we must build on in the months and years to come," Kreilick said.
Varshini Prakash, executive director of the Sunrise Movement, called the law "a forced compromise between corporate oil lobbyists and young people who are fighting for a livable future," noting the IRA's continuation of oil and gas lease sales "is unacceptable, and will hurt the predominantly Black, Brown, and poor communities on the frontlines of extraction."
The group--led by young climate activists--also gave credit to campaigners who have pushed the Democratic Party to embrace the Green New Deal and adopt ambitious climate action.
"Today, it's clear that young people have organized the impossible into existence," Prakash said, noting that activists and Rep. Alexandria Ocasio-Cortez (D-N.Y.) sat in the office of House Speaker Nancy Pelosi (D-Calif.) "in 2018 to make climate action a political priority."
"We pushed until 23 out of 25 Democratic presidential candidates endorsed the Green New Deal--and until they understood climate and jobs were inextricably tied," she continued. "We helped inspire record youth turnout after helping Biden write a more ambitious climate plan. And in 2021, we never let lawmakers forget they had an obligation to deliver climate legislation."
"Simply put, the movement for a Green New Deal created the conditions to make Biden's agenda and this climate investment possible," Prakash added. "Without the Green New Deal, there is no IRA."
Other advocates hailed IRA provisions requiring Medicare to negotiate lower prescription drug prices, limiting out-of-pocket insulin costs to $35 per month for Medicare beneficiaries, making all adult vaccines free for program enrollees, and capping out-of-pocket prescription medication costs at $2,000 per year for Medicare Part D.
"President Biden, along with Democrats in the Senate and House, fulfilled their promises to the American people by standing firm in the face of assaults from Big Pharma and passing unprecedented reforms," said David Mitchell, a cancer patient and founder of Patients for Affordable Drugs Now. "As a result, they have changed the trajectory of drug pricing in the United States."
"Patient advocates across the country who shared their personal experiences of the burden of high drug prices made this monumental victory possible," Mitchell added. "We are humbled and energized by patient advocates' power to move the will of Congress. Our work to ensure all patients can afford the medications they need will continue."
The IRA provision allowing Medicare to negotiate prescription drug costs could result in lower prices for five to seven million Medicare recipients, according to the Alliance for Retired Americans.
Alliance president Robert Roach Jr. said in a statement that "this victory for older Americans is especially sweet because it shows seniors defeating the pharmaceutical industry. Fortunately, the efforts of 4.4 million alliance members and our allies overcame the efforts of the 1,600 lobbyists the pharmaceutical corporations employed in 2021."
Richard Fiesta, the group's executive director, added that activists "have been fighting to allow Medicare to negotiate lower prescription drug prices for two decades. Our members first took bus trips to Canada to obtain more affordable medications as far back as 2002."
Economic justice group Patriotic Millionaires praised the bill's provisions imposing taxes on corporate stock buybacks and other minimum taxes on large companies, as well as increased funding to hold wealthy tax dodgers accountable.
"The vast majority of working Americans pay every cent they owe in federal taxes--it's time for wealthy criminal tax evaders to do the same," said Morris Pearl, chair of the group. "The American people are tired of doing their part daily to keep this country running while criminal tax evaders and corporate tax cheats pay nothing. The rich are required to pay the bare minimum back to the society responsible for their success, and the IRA will make them do just that."
This post has been updated with additional details about the law and comments from multiple groups.
While the Democratic presidential candidates are debating full Medicare for All, giant insurance companies like UnitedHealthcare are advertising to the elderly in an attempt to lure them from Traditional Medicare (TM) to the so-called Medicare Advantage (MA)--a corporate plan that UnitedHealthcare promotes to turn a profit at the expense of enrollees.
Almost one third of all elderly over 65 are enrolled in these numerous, complex MA policies the government pays so much for monthly. The health insurance industry wants more enrollees as they continue to press Congress for more advantages.
Medical Disadvantage would be a more accurate name for the programs, as insurance companies push to corporatize all of Medicare, yet keep the name for the purposes of marketing, deception, and confusion.
"All this anxiety, dread, and fear, all these arbitrary denials of care--prompted by a pay-or-die commercial profit motive--all these restrictions of what doctors or hospitals you can go to, do not exist in Canada."
Elderly people enrolled in MA will experience its often merciless denials when they get sick. As hospital expert--attorney, physician, Dr. Fred Hyde put it: "It's not just what you pay, it's what you get."
Start with the cross-subsidy of MA from TM. In 2009, the Congressional Budget Office estimated these overpayments would cost the federal government $157 billion over the coming decade. Obama's Affordable Care Act started to reduce these subsidies to the giant insurers, but they still amount to many billions of dollars per year.
Add that with Medicare Disadvantage you are restricted to networks of vendors. That restricts your choice for competence and skills, and sometimes, requires you to travel longer distances for treatment. This could mean fewer enrollees will utilize their healthcare and more profits for the insurance companies.
Under Medicare Disadvantage you are subject to all kinds of differing plans, maddening trapdoor fine print, and unclear meaning to the insurers arguing no "medical necessity" when you're denied care.
The advertisements for Medicare Disadvantage stress that you can sometimes get perks--gym memberships, hearing aids, and eyeglasses, as enticements, but they avoid telling you they are not so ready to cover serious needs like skilled nursing care for critically ill patients.
Under Medicare Disadvantage, there is no Medigap coverage as there is for TM. Co-pays and deductibles can be large. Under a recent Humana Medicare Advantage Plan in Florida, your co-pay for an ambulance is up to $300, up to $100 co-pay for lab services, and another $100 for outpatient x-rays.
A few years ago, UnitedHealthcare corporations dismissed thousands of physicians from their MA networks, sometimes immediately, sometimes telling their patients before telling their physicians.
Dr. Arthur Vogelman, a gastroenterologist, said he received a termination letter in 2013 from UnitedHealthcare. He appealed, documenting his successful treatment of many patients. The company denied his appeal, with no reason, as it had for thousands of network physicians.
Dr. Vogelman called it "an outrage. I have patients in their 80s and 90s who have been with me 20 years, and I'm having to tell them that their insurer won't pay for them to see me anymore. The worst thing is I can't even tell them why." Except that the company wanted more profits.
After a lengthy protest by national and state medical societies in 2013, UnitedHealthcare began to be less aggressively dismissive.
Studies show the main reason MA enrollees return to TM is how badly the corporate insurers treated them when they became sick.
Medicare itself is getting overly complex. But nothing like the ever changing corporate rules, offerings, and restrictions of Medicare Disadvantage. How strange it is that AARP, with its Medigap insurance business run by UnitedHealthcare, doesn't advise its members to go with the obviously superior Traditional Medicare. AARP reportedly receives a commission of 4.95% for new enrollees on top of the premiums the elderly pay for the Medigap policy from United Healthcare. This money--about seven hundred million dollars a year--is a significant portion of AARP's overall budget.
AARP responded to my inquiries into their Medicare Advantage policy saying that it does not recommend one plan over another, leaving it to the uninformed or misinformed consumer. That's one of AARP's biggest cop-outs--they know the difference.
There is no space here to cover all the bewildering ins and outs of what corporations have done to so-called managed Medicare and managed Medicaid. That task is for full-time reporters. The government does estimate a staggering $60 billion in billing fraud annually just on Medicare--manipulating codes, phantom billing, etc. You need the equivalent of a college-level course just to start figuring out all the supposed offerings and gaps.
Suffice it to say that, in the words of Eleanor Laise, senior editor of Kiplinger's Retirement Report, "the evidence on healthcare access and quality decidedly favors original Medicare over Medicare Advantage, according to a Kaiser Family Foundation review of 40 studies published between 2000 and 2014."
All this anxiety, dread, and fear, all these arbitrary denials of care--prompted by a pay-or-die commercial profit motive--all these restrictions of what doctors or hospitals you can go to, do not exist in Canada. All Canadians have a Medicare card from birth; they have free choice of healthcare vendors. There are few American-style horror stories there; patients have better outcomes, and almost never even see a bill. The whole universal system costs half per capita of that in the U.S., where over 80 million people are uninsured or underinsured--still! (See singlepayeraction.org, for civic action to rid Americans of this perverse chaos).