Tag Archives: poor

Preserving Social Security to Pay for Medicare

The Paul Ryan 2012 budget bill and “Path to Prosperity” sailed through House Friday on Republican votes. The GOP plans to spend $3.5 trillion next year, down a whopping $30 billion from 2011 (about eight days of current war spending), by cutting food stamps and Medicaid for the poor, children and the disabled. The Republican bill will still require the Government to borrow more than 40 cents of every dollar spent.

The bill passed is part of the Republican “roadmap” to reduce the deficit by $4.4 trillion* over the next ten years, while:

  • getting reelected;
  • providing $2.9 trillion in tax cuts for their wealthiest supporters;
  • gets rid of subsidies to develop alternative energy sources;
  • raising taxes for those making $20,000 to $200,000 per year;
  • repealing healthcare reform to make sure at least 52 million Americans are without health insurance;
  • in 2022, freezing and privatizing Medicare, Medicaid and the Children’s Health Insurance Program (CHIP);
  • and leaving it up to the states to deliver the bad news to our seniors, the disabled, children and the poor.

Except in calling for “reform,” the plan does leave Social Security intact, at least, so far** – and our seniors will need it. The average Social Security benefit for a retired worker is currently $14,124. In 2022, the additional out-of-pocket cost for Medicare will be $5,744. By 2030, it will increase to $8,833.

Impact of costs on seniors by Ryan budget bill - This was published by the Center for American Progress (http://www.americanprogress.org/issues/2011/04/ryan_medicare.html)

Of course, this assumes that a private health insurance company in 2022 will offer a policy to someone over 65 for $20,513. Best of luck with that —  especially if by that time you have one of those pesky pre-existing conditions.

*Just in case you are keeping track of the mundane things such as this, President Obama’s “Path to Austerity,” plans to reduce the deficit by $4 trillion in 12 years.

**The Republicans have a separate bill making its way to the floor and endorsed by their leadership that will raise the retirement age to 70 and include a means test for benefits.

Put the oxygen mask on yourself, first

An open letter to people who will show about $150,000 gross or less on their tax form this year.

tombstone: He was a priority for a whileThe present poverty line for a family of four is $21,834, but that doesn’t tell the story anymore. You make a lot more than that. You also have credit card debt and/or equity lines or ARM’s or contracts for services that can’t be canceled. One of you is not making the same as last year. A sane accountant looking at your situation would tell you that you that you no longer have “disposable income.”

Sure, you have a job. Sure, your house is worth more than you can sell it for. Sure, you have assets. You’re vested in your career. But once you pay the what-you-got-to’s, there’s nothing left. You have become the middle class poor. You are the responsible, tax-paying, hardworking, never quit household that is the backbone of our country. You are better off than the unemployed of your same caste, but you are one crisis from being equal to all those other people.

You are going to achieve. Whatever it takes. You pay your bills. You’ve cut back. No more e-bay. Wine at dinner is a memory or an infrequent special occasion. The boutique shopping for the kids has been replaced by trading clothes with friends and family, charity store visits or Walmart. You haven’t been to the dentist in a while and won’t go anytime soon. That 401-k won’t be matched this year. Your hair is longer and a color you haven’t seen since high school. If they say change your oil every 5,000 miles, it’ll probably be okay for 15,000 or so. You are one straw away from total meltdown. You, the admired among the admired, are one late fee and rate change — or, god-forbid, a medical crisis — from the poverty line. Those triple credit score dot com commercials are singing to you in every television break.

This healthcare debate is about you. Forget the poor. Save you.

This debate is framed by spin from all sides, none, not a one, is talking about you. You have healthcare insurance, but please, I beg you God, don’t let me get sick. Don’t make me spend the deductible. I can do a copay today, but a hospital stay? No, save it for the kids. I can’t. There’s a little room on that VISA; what the hey, I can afford to be against healthcare reform. After all, it will bust the budget. Won’t inflation take everything I’ve worked for away?

No. Not like one pain in the abdomen. Or lump in the breast. Or a little blood in your urine. “It won’t happen to me,” you say. “I’m young.” Don’t dance with that devil. He’ll win. It won’t be long before you or yours will hear it. The age of 65 is longer away in medical insurance terms than your mortgage payoff.

Healthcare reform is about you. About that moment, perhaps it is today, when your copay at CVS will mean you don’t have lunch money for the kids. About that moment when you have that follow up appointment you’ve been waiting three months for and your child needs medicine.

Healthcare reform is about what happens to priorities. Your priority list a year ago could go twenty deep. Now it is a list of two. All it takes is a little chest pain to make your priority list a list of one.

You may want to be a bleeding heart: Charity first, save the person on the phone, screw your health, whatever for the other, I’ll make time, I can match that, run for the other and walk for everything important. This is your moment to do something really important for yourself. For your family. For your friends. Because one of you, maybe not today, but certainly a day very soon, will be, for all practical purposes, poor. The working, hard-working, desperate, no place to turn, poor. The I can over achieve because I believe in capitalism and the American way gone wrong, poor. The I haven’t failed, just ran out of money at the wrong time, poor.

This debate, is about you. Your priority needs to be, call your congressperson and senators and light a fire up their asses. Read the bills that are being debated. Decide what makes sense to you for you and tell them. Don’t listen to Fox, CNN, MSNBC or anyone else. They don’t take the crisis calls from your family. Only you can decide. This is your moment.