House Democrats Offer Nothing But Empty Promises on Social Security and Medicare Reform
As Trustees Warn of Entitlement Crisis, Majority Leader Hoyer Punts on Reform Until the Next Congress
Washington,
Mar 26, 2008 -
The trustees for the Social Security and Medicare programs have issued yet another alarming report about the future of the two entitlement programs. The bottom line: without reform, the Medicare and Social Security trust funds will both be headed for bankruptcy within the next several decades. This morning’s New York Times has the details:
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“The new report, like the one issued last April, said Medicare’s hospital insurance trust fund would be exhausted in 2019, while Social Security’s reserves would be depleted in 2041…”
“The trustees said Medicare’s hospital insurance trust fund would pay out more in benefits than it receives in taxes and other dedicated revenues this year. Social Security costs will exceed tax revenues starting in 2017, they said. The government will then have to draw on assets of the Social Security trust fund – special government bonds – to meet its obligations to retirees.”
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The trustee’s report is nothing new, but that doesn’t mean urgent action from Congress is not imperative. This is why, for years on end, congressional Republicans have reached out to their Democratic colleagues with the hope of preserving these two critical programs on behalf of seniors, workers, and taxpayers alike. But unfortunately, at each and every turn, Democrats in Congress have failed to put forth any reform plans of their own and rejected Republican overtures for reform, choosing instead to punt on saving Social Security and Medicare.
Republicans included significant plans for entitlement reform in their budget proposals for FY 2008 and FY 2009. Yet when Democratic leaders had the opportunity, here’s what the proposed:
- FY 2008: ZERO Reform
- FY 2009: ZERO Reform
Yesterday, just hours after the trustees’ latest report, the Democratic Majority punted once again, with House Majority Leader Steny Hoyer (D-MD) saying in a press release, “I believe that we must get serious about addressing the long-term challenges to Social Security and Medicare. To that end, we must begin to lay the foundation for bipartisan action on this issue in the next Congress.”
That’s right. Even though the Social Security and Medicare trustees have warned Congress, the Administration, and the American people that the programs are headed for a financial train wreck, a key leader of the new House Democratic Majority says steps to preserve the entitlement programs can wait…at least for another year – one year closer to Medicare’s and Social Security’s potential bankruptcy. That’s not leadership. That’s a complete lack of responsibility.
House Republican Leader John Boehner (R-OH) has called on Congress to act immediately on the Social Security and Medicare crises instead of waiting a year or two to get started, as Majority Leader Hoyer plans:
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“The need to reform Medicare and Social Security to preserve the programs’ benefits for future generations of American seniors is clear. The Social Security and Medicare Trustees have repeatedly warned Congress and the American people that the programs must be reformed or future benefits will be threatened, and today’s report is no exception. We face a demographic tsunami of nearly 80 million retiring Baby Boomers and rising healthcare costs. Congress can’t sit idly by while these programs go bankrupt; we must act now.”
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House Republicans have backed-up their calls for reform with real action. Earlier this year, Boehner introduced legislation to begin reforming the Medicare program by using new technologies, cracking down on frivolous lawsuits, and focusing on helping the neediest seniors – legislation that should serve as a starting point for work on this critical issue. This stands in stark contrast to the Democrat-led legislation passed by the House last year that would have gutted the most successful and innovative part of the Medicare program, and cut important Medicare services for low-income seniors, as part of a scheme to lure upper-middle class families into government-run health care.
The Social Security and Medicare trustees’ report is just another reminder that the threat to our entitlement programs and our nation’s financial stability is real. Republicans are ready and waiting to sit down with the Majority to move forward with serious discussions regarding our nation’s fiscal health in the short and long term. For the sake of seniors, workers, and taxpayers, the time to act is now, not next year…or the year after that.
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