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Social Security Privatization
I am opposed to the privatization of Social Security system proposed by some members of the
Republican Leadership because it would undermine the Social Security system on which so many
Americans rely. Privatization would replace guaranteed benefits with benefits dependent on
a worker's luck or skills in investing in a stock market which has had at least nine major
downturns since 1956. It would also drive up administrative costs, which are now one
percent, and could go as high as the system in Chile where private investment companies
collect fees between 15 and 20 percent. For these reasons, I believe that any proposal to
reform Social Security must be examined carefully to ensure that
the solvency of the program is not undermined in any way and the benefits are not
diminished.
Read
more about my position on Social Security
Social
Security Reform: Current Issues and Legislation
(Library
of Congress)
Medicare & Prescription Drugs
As you may already know, the Medicare program is projected to run short of funds by the
year 2015. I can assure you that I have been closely following the Medicare debate in
Congress, and I will carefully examine any proposals that would make changes to the
Medicare program. I am especially interested in protecting current benefits, providing
greater coverage for prescription drugs, and reducing fraud in the system.
I would also
like to take steps to remedy the harsh effects that the Medicare cutbacks and changes in
the payment system, which were included in the Balanced Budget Act of 1997, have had on
the Medicare program and our nation's hospitals.
Read more about my
position on Medicare & prescription drugs
Nursing Home Safety
In February 2003, an early morning fire at the Greenwood Health Center, a nursing home in Hartford, CT, claimed the lives of sixteen residents. A similar fire in Nashville, TN later that year killed fifteen residents. In both cases, these facilities lacked an automatic fire sprinkler system.
On December 8,
2005, I joined Representative Peter King (R-NY) in introducing the Nursing Home Fire Safety Act
(HR 4491). The bill
addresses the primary obstacle – the cost - to installing sprinklers
by directing the Secretary of Health and Human Services to establish
both a loan program and need-based grant program to aid nursing homes in
tackling the high cost of installing sprinklers.
Read
more about my position on nursing home safety
Notch Baby Legislation
As you may already know, the “Notch Baby” situation is a result of the Social
Security Amendments of 1977, which sought to correct a flaw in a 1972 law which attempted
to increase Social Security benefits to keep pace with inflation. The 1972 law raised the
eventual benefits of future retirees in addition to providing regular inflation
adjustments to people already receiving benefits. These future retirees, however, would
have already earned higher benefits as their wages would have been higher as a result of
inflation, and this “dual indexing” threatened to bankrupt the Social Security
system in four or five years. This problem was unforeseen by the drafters of the 1972 law
since they did not anticipate the high inflation rates of the 1970s.
When Congress addressed this issue in 1977, they made the fix
applicable to future retirees, since they did not want to cut the benefit rates for the
retirees who were already receiving the unanticipated increases. The 1977 law resulted in
immediate benefit disparities between the people first affected by it (those born after
1916), who have not been receiving the overly generous benefits that those born before
1917 have been receiving.
Congressman Ralph Hall of Texas has
introduced the Notch Fairness
Act of 2007 (H.R.
368). This bill would allow workers who turn 65 after 1981 and before 1992 to
choose either a $5,000 lump sum payment over four years or a more generous benefit
computation over ten years. Currently, this bill has been referred to the House Ways and
Means Subcommittee on Social Security, where it
awaits further action.
While in Connecticut, Congressman Larson
often visits senior centers throughout the First Congressional District to discuss a variety
of important issues, including: prescription drugs, Medicare HMOs, and Social Security.
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