Church Blog

Senators Propose Medicare Change

On June 28, Senators Joseph Lieberman (I-CT) and Tom Coburn (R-OK) introduced a new plan that would adjust Medicare’s eligibility and payment structure. The bill’s sponsors say the proposal would reduce Medicare spending by $600 billion over the next 10 years.
As introduced the bill would:

•  Raise the eligibility age from 65 to 67. This increase would occur in two month increments starting with people turning 65 in 2014 until the threshold reaches 67 in 2025. Doing so is projected to save $124 billion over 10 years.
•  Increase Part B premiums for individuals making more than $150K a year o couples making more than $300K a year. Under the plan, they would have to pay 100 percent of the costs of their Part B coverage, which covers non-hospital doctor’s care. Currently, premiums are now covered at 25 percent. The projected savings would be between $5-10 billion over 10 years.
•  Establish a combined annual deductible of $550 for both Part A and Part B Services and restructure Medigap Coverage that picks up costs not covered by Medicare. Out-of-pocket expenses would be capped at $7,500 a year. For individuals with incomes between $160,000-213,000, expenses would be capped at $22,500. The projected savings would be $130 million over 10 years.
•  Phase out Medicare payments for bad hospital debt. Currently, Medicare reimburses hospitals and providers for unpaid deductibles and copayments. Eliminating this reimbursement is expected to save $23 billion over 10 years.
•  Increase Part B premiums for Medicare beneficiaries by 2 percent over 5 years, including a “hold harmless” provision that would prevent an increase in the Part B premium in the event if it would be larger than the Social Security annual cost-of-living adjustment. The projected cost savings is $241 billion over 10 years.

While the proposal is said to be too controversial to pass as a whole package, elements of the proposal could be included in debt negotiations or longer term discussions on Medicare. For more information, please contact Lucreda Cobbs, Senior Director, Policy and Legislative Affairs at [lcobbs@catholiccharitiesusa.org].
 

 
Debt Limit Update
 
With an August 2nd deadline approaching, President Obama and Congress remain at odds in their negotiations to avoid forcing the first Federal government default on debt obligations in U.S. history. Congress, which has the authority to raise the debt limit, is responsible for making sure the Treasury department is able to cover the government’s financial obligations through 2012.
 
For the Republicans in the House, they are adamant that any debt limit deal must include no tax increases. Democrats, led by President Obama, take the position that any budget reductions must include tax increases requiring the nation’s top earners to pay their “fair share.” “We need to take on spending in domestic programs, in defense programs, in entitlement programs, and we need to take on spending in the tax code, spending on certain tax breaks and deductions for the wealthiest of Americans,” Obama said. “This will require both parties to get out of our comfort zones and both parties to agree on real compromise.”
 
Republican leaders have vowed to oppose any tax increases, while leaving open a small possibility of increasing revenue through ending some tax loopholes or raising user fees.   The bottom line for the Republicans is that any effort to raise the debt limit must be accompanied by spending cuts of an equal amount. House Speaker John Boehner (R-OH) warned that any plan to increase taxes “cannot pass the House, as I have stated repeatedly…I’m happy to discuss these issues at the White House, but such discussions will be fruitless until the President recognizes economic and legislative reality.”
 
President Obama has invited the top Democratic and Republican leaders in the House and Senate to a meeting at the White House on Thursday, July 7th, 2011 for a summit to attempt to hammer out a deal that all parties can agree on and avoid a default on the nation’s debt.
 
Catholic Charities will continue to very closely monitor the developments in this very critical and sensitive Congressional and Administrative issue. For more information, contact Ron Jackson, Senior Director, Government Affairs, [rjackson@catholiccharitiesusa.org].
 
 
 
 
Senate Committee holds DREAM Act Hearing
 
On June 28, the U.S. Senate Judiciary committee held the first-ever hearing on the Development, Relief, and Education for Alien Minors (DREAM) Act. The legislation addresses the plight of immigrant children who grew up in the U.S. and graduated from high school, but cannot attend college because of current immigration laws.
 
Witnesses at the hearing included:

•  Janet Napolitano, Secretary of Homeland Security, who testified to the importance of the DREAM Act for our country, the benefits to our economy and the armed forces
•  Arne Duncan, Secretary of Education, who testified to his Department’s support for the legislation and its importance for our country’s global competitiveness
•  Clifford Stanley, Undersecretary of Defense (Personnel and Readiness), who discussed the DREAM Act and its impact on our Armed Forces.
•  Ola Kaso, an immigrant student, who shared her experience as a child coming into the U.S. legally thirteen years ago and excelling in her education, but who now faces deportation in less than a year.

 
If enacted by Congress, the DREAM Act would put children of undocumented immigrants on a path to legal permanent residence and eventual citizenship if they attend college or join the military for two years. The Act would apply to those children who entered the U.S. prior to age 16, have lived in the United States for at least five years, and have graduated from high school. In addition, the proposal would allow students to attend college at in-state tuition rates.
 
It is unlikely that the bill will receive consideration in the House. As previously reported, Majority Leader Harry Reid suggested that the measure could be attached to a web-based employment proposal expected to be introduced in the House of Representatives. In addition, the Congressional Quarterly reported that expanding the E-Verify system is a top priority of House Judiciary Chairman Lamar Smith (R-TX), who is expected to introduce such legislation later this year.

To view testimony and/or the webcast from the DREAM Act Hearing, please visit the following link: [http://judiciary.senate.gov/hearings/hearing.cfm?id=3d9031b47812de2592c3baeba604d881]
 
Catholic Charities USA will continue to provide you with updates on the DREAM Act as the bill moves through the legislative process. For more information, please contact Lucreda Cobbs, Senior Director, Policy and Legislative Affairs at [lcobbs@catholiccharitiesusa.org].
 
 
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Washington Weekly is a publication of the Social Policy Department of Catholic Charities USA
and is published regularly when Congress is in session.
Catholic Charities USA
Sixty-Six Canal Center Plaza, Suite 600, Alexandria, VA 22314
socialpolicy@catholiccharitiesusa.org     
For information about advocacy, please contact
Lucreda Cobbs at (703) 236-6243 or lcobbs@catholiccharitiesusa.org.