Advancing American Freedom applauds House Budget Committee Chairman Jodey Arrington’s announced hearing on the sustainability of Social Security and Medicare.
Ignoring the looming insolvency crisis facing these two programs will only result in arbitrary cuts to benefits and health services for seniors. Democrats who politicize these programs and advocate inaction will be directly responsible for beneficiary cuts. The only responsible thing to do is to start assessing solutions to the unavoidable problem.
Ignoring the Crisis is Irresponsible
AAF has repeatedly pointed out that conservative Republicans simply cannot ignore the coming fiscal crisis that is driven by mandatory federal spending.
· 61% of all federal spending in 2023 went to mandatory programs.
· Spending for Social Security ($1.348 trillion) and Medicare ($1.009 trillion) made up 38% of all federal spending ($6.135 trillion) in 2023, according to CBO.
· As a result of runaway mandatory spending, only 28% of government spending is subject to annual review or appropriation.
Cuts Are Coming If Democrats Succeed
There are currently 58 million people on Social Security and 65.7 million enrolled in Medicare. As the trust funds for these programs fail, those beneficiaries are put at risk.
· If the Social Security trust fund is exhausted beneficiaries face a 21% cut.
· If the Medicare trust fund is exhausted beneficiaries face a 11% cut.
· Medicare insolvency will also mean seniors will lose doctors and hospital care.
Nothing Should Be Off the Table
As the House Budget Committee admirably begins these conversations, it is important to examine every option to avert looming insolvency. Even if the reforms put forward in this hearing are not the ultimate solution, nothing should be off the table. The Budget Committee should provide real analysis of all ideas, including but not limited to:
· Stopping wasteful overpayments in the Medicare program;
· Establishing a Congressional Fiscal Commission with fast track legislative authority.
· Means testing benefits that currently go to seniors with millions in income;
· Allowing younger Americans to opt out of programs or invest in private accounts;
· Repealing the Inflation Reduction Act which syphoned funding from Medicare; and
· Allowing site neutral payments for Medicare treatment.
