Fixing Social Security
We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
Trump, Biden, Trump, Obama all learned from Bush 2 that anyone in office who proposed change will be accused of pushing grandma in a wheelchair off a cliff. Why do you think Bush 2 changed direction and signed off on Medicare Part D, adding $10+ Trillion in new, unfunded liabilities?
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Now the administration is shifting costs back to retirees and blaming insurance companies lai ing it’s better for patients to pay premiums to insurers conveniently forgetting that raises premiums as the subsidies stop.
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Biden and Trump famously confirmed, in 2023, that neither would cut a penny in Social Security benefits.
https://www.wsj.com/opinion/the-biden-trump-plan-to-cut-social-security-mccarthy-debt-ceiling-payroll-tax-automatic-trust-fund-6a6c7586
“… “I guarantee you I will protect Social Security and Medicare without any change. Guaranteed,” Mr. Biden said in March.
Mr. Trump has said: “I will do everything within my power not to touch Social Security, to leave it the way it is.”
In fact, Biden increased Medicare Rx spending via the Inflation Reduction Act price controls on the most expensive Rx – shifting those costs to those Americans who are not covered under plans where the federal and state government fix prices.
This may not be “price fixing” in the traditional sense, but “negotiates” prices with a hammer. “Negotiated” maximum prices represent average discounts ranging from 15% to 60% lower than previous retail net prices. Beyond capping the price, the IRA mandates that all Medicare Part D plans must provide coverage for every drug selected for the “negotiation” program, expanding access to all dosages and forms of these medications.
The price adjustments are introduced in annual, cumulative phases 2026 – 10 DrugsMedicare Part D (Retail Rx)
2027 – 15 DrugsMedicare Part D (Retail Rx)
2028 – 15 DrugsMedicare Part D & Part B
2029 – +Add 20 Drugs annually Medicare Part D & Part B
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I agree. The inertia is maddening. One of my cousins is an actuary who served on a non-governmental advisory board composed entirely of actuaries who specialized in pension funding. I was privileged to watch my cousin speak on a panel geared to the non-actuary public. A variety of options for fixing were suggested, as well as observations about who are current contributors/working persons. It was very interesting and eye-opening.
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