Deficit panel leaders plan curbs to Social Security
Proposals seek to keep $1 trillion-plus budget deficits under control
Associated Press
November 10, 2010
The two were among the first to acknowledge their plan's unpopularity — and to suggest it would be a nonstarter in Congress.
"We'll both be in a witness protection program when this is all over, so look us up," Simpson told reporters. Bowles said: "We're not asking anybody to vote for this plan. This is a starting point."
The White House released a statement Wednesday afternoon saying Obama would not comment on the proposal until the fiscal commission finishes its work.
"These ideas ... are only a step in the process towards coming up with a set of recommendations and the President looks forward to reviewing their final product early next month," said White House spokesperson Bill Burton.
http://www.msnbc.msn.com/id/40111748/ns/politics-more_politicsOf course, some of the worst proposals will be taken out of the final draft so it will appear that a reasonable compromise has been reached to cut Social Security, Medicare and other so-called "entitlements". BBI
Some excerpts from the commission draft proposal:Increase cost-sharing in Medicare
Eliminate first-dollar coverage in Medigapplans.
Replace existing cost-sharing rules with universal deductible, single coinsurance rate, and catastrophic cap for Medicare Part A and Part B.
Pay lawyers less and reduce the cost of defensive medicine
Enact comprehensive medical malpractice liability reform to cap non-economic and punitive damages and make other changes in tort law.
Illustrative Health Care Savings
Place Dual-Eligible Individuals in Medicaid Managed Care
Cut Medicare Payments for Bad Debt
Expand ACOs, Payment Bundling, and Other Payment Reform (require IPAB to recommend cuts if savings are not realized)
Cut Federal Spending on Graduate and Indirect Medical Education
Reduce Federal Spending on Medicaid Administrative Costs
Increase Nominal Medicaid Copays
Reduce Taxes that States May Levy on Medicaid Providers
Accelerate Phase-in of DSH Payment Cuts, Medicare Advantage Cuts and Home Health Cuts in PPACA
Reform Tricarefor Life to Increase Cost Sharing for Military Retirees
Reform FEHB Retiree Plans to Increase Cost Sharing for Federal Civilian Retirees
Establish National Standards for Regulating and Administering Health Insurance
Convert The Federal Share Of Medicaid Payments For Long-Term Care Into a Capped Allotment
Chained CPI
Shift to chained CPI for all indexed programs
Current measures of inflation overestimate increases in cost of living by failing to account for “substitution bias”
Adopting a more accurate measure of inflation would achieve savings government-wide
Military and Civil Service Retirement
Use highest 5 years to calculate civil service pensions
Ask federal workers to contribute ½ the cost (not 1/14th)
Reform COLA payments for civilian & military early retirees
Reform military retirement system to vest after 10 years (not 20); defer collection until age 60
Ensure Long-Term Social Security Solvency
Increase progressivity of benefit formula
Gradually move to a more progressive benefit formula by creating a new bendpointat the 50thpercentile and reducing upper replacement factors slowly over time, phased in by 2050
Index retirement age to increases in longevity
This option is projected to increase the age by one month every two years after it reaches 67 under current law, meaning the normal retirement age would reach 68 in about 2050 and 69 in about 2075
Hardship exemption for those unable to work beyond 62
Switch to a more accurate measure of inflation (chained CPI) for calculating COLAs
Include newly hired state and local workers in Social Security after 2020
Broaden the Payroll Tax Base
Gradually increase the taxable maximum to capture 90 percent of wages by 2050
Under current law, the taxable maximum is pegged to growth in average wages. In 2009, the taxable maximum captured almost 86 percent of earnings, but it will fall to 82.5 percent by the end of the decade.
Phasing into a higher taxable maximum slowly will prevent large marginal changes and will prevent rapid buildup of the trust fund.(Sure can't let that happen!!!!!!! BBI)
Allow greater flexibility in how benefits are claimed
Give retirees the choice of collecting half their benefits early and the other half at a later age to minimize impact of actuarial reduction and support phased retirement options.
Increase benefits for low-income widows
Reduces balance by 0.06% of payroll
Cap spousal benefit at one-half of average worker’s benefit
Improves solvency by 0.08% of payroll
Reinstate college benefits for child survivors
Reduces balance by 0.07% of payroll
Tax cafeteria plans in same manner as 401(k) plans
Improves solvency by 0.22% of payroll
Uncap the Disability Insurance (DI) portion of FICA taxes (1.8%)
Improves solvency by 0.34% of payroll
Fully or partially tax employer-sponsored health insurance
Solvency impact dependent on design
Convert delayed retirement credit into one-time bonus
No solvency impact
Include automatic stabilizer with future benefit and/or revenue changes
Read the full text of the deficit commission draft proposal at:http://msnbcmedia.msn.com/i/MSNBC/Sections/NEWS/A_Politics/___Politics_Today_Stories_Teases/CoChair_Draft.pdf
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