New Mexicans. Have Their Say about Medicare and Social Security

Transcription

1 New Mexicans Have Their Say about Medicare and Social Security

2 New Mexicans Have Their Say In March, AARP launched You ve Earned a Say a national conversation about how to protect Medicare and Social Security for today s seniors and strengthen them for future generations. You ve Earned a Say so far has engaged over 3 million people in this conversation and held over 3,000 events, including a nationwide tour visiting communities across the country. Our earnedasay.org website is providing Americans with interactive tools and information about the policy options on the table in Washington the pros and cons so they can make up their own minds about how these programs should be strengthened. This report, New Mexicans Have Their Say about Medicare and Social Security, features comments from Land of Enchantment residents in their own words as well as the results of three questionnaires that raise key questions facing these programs. The questionnaires are not scientific surveys; they indicate the opinions of the millions of people who answered the various questionnaires. On behalf of our 37 million members, we look forward to working with both parties to find common-sense solutions that will strengthen Medicare and Social Security for today s seniors and future generations. AARP National Survey Shows Support for Medicare, Social Security across Party Lines A recent AARP nationwide survey of registered voters reflects what we ve heard through our questionnaires and events across the nation: Medicare and Social Security are critical to the health and retirement security of today s seniors and future generations, but reasonable adjustments are needed to put the programs on stable ground. The poll found that 47% of voters age 50+ are not confident that they ll ever be able to retire and 67% believe the recent economic downturn will force them to rely even more on Social Security and Medicare. Voters 50+ think the next president and Congress need to strengthen Social Security (91%) and Medicare (88%). They also overwhelmingly (91%) believe that these issues are too big for either party to fix alone and require Republicans and Democrats to come together. Why Strengthening Medicare and Social Security Is So Important Throughout You ve Earned a Say, we re consistently hearing in cities and towns across America that people of all ages and across party lines believe Medicare and Social Security are critical to the health and retirement security of seniors. They believe the programs should be strengthened so future generations have affordable health care and a foundation of income when they retire. Any decisions about the future of Medicare and Social Security should be based on the following facts: Half of those 65 and older have incomes of less than $20,000 per year. Even with Medicare, half of Medicare recipients spend 17% of their incomes on health care costs. Today, half of the workforce has no employerprovided retirement plan. With the demise of the traditional pension, Social Security is the only guaranteed source of income most future retirees will have that they can t outlive. More than one in three working households age 21 to 64 has no individual savings set aside for retirement. Even those households age 50 to 59 with retirement savings do not have enough; one in four have less than $27,000 and half have less than $80,000. What New Mexicans Are Saying about the Future of Medicare and Social Security Members and the public have the opportunity to complete our three questionnaires at events in their communities, on earnedasay.org, through the AARP Bulletin, or by phone. This report provides the results to date of all three questionnaires by state and, for the first questionnaire, by congressional district. Responses to questionnaires 2 & 3 are still coming in, and congressional district results will be available before the end of the year. New Mexicans have earned their say about Medicare and Social Security. This is what they have told us. New Mexicans Have Their Say about Medicare and Social Security 2

3 Questionnaire 1: Results Questions Results 1. Which of these statements do you think describes Social Security the best? A. Social Security is okay as it is B. It needs minor changes C. It needs major changes D. It is in a state of crisis D. 19% C. 24% A. 29% B. 29% A. 29% B. 29% C. 24% D. 19% 2. Which of these statements do you think describes Medicare the best? A. Medicare is okay as it is B. It needs minor changes C. It needs major changes D. It is in a state of crisis D. 18% C. 30% A. 23% B. 28% A. 23% B. 28% C. 30% D. 18% 3. Do you expect to get more back from Medicare and Social Security than you have contributed, less, or about the same? A. More B. Less C. Same C. 42% A. 30% B. 29% A. 30% B. 29% C. 42% 4. When it comes to securing the future of Medicare and Social Security, which of the following do you expect: A. More funding will be needed to maintain the same benefits B. Benefits will be reduced C. Either A or B D. None of the above D. 13% C. 40% A. 35% B. 12% A. 35% B. 12% C. 40% D. 13% 5. When it comes to changes being made to Social Security and Medicare in Washington, which of the following describes you the best: A. I want to make my voice heard B. I want to make my voice heard, but I don t think it will make any difference C. I am not interested in being involved C. 5% B. 45% A. 50% A. 50% B. 45% C. 5% New Mexicans Have Their Say about Medicare and Social Security 3

4 Questionnaire 2: Results Questions Results 1. According to the Social Security Trustees, Social Security will be able to pay all benefits for about 20 years and three-quarters of promised benefits after that time. In order to ensure all benefits can be paid, they say that some/small changes can be made now or larger changes can be made later. Do you think changes should be made? A. Major changes should be made now B. We should wait a few years before making major changes C. Some changes should be made now, but we should wait before making any major changes D. No changes should be made D. 10% C. 47% A. 28% B. 16% A. 28% B. 16% C. 47% D. 10% 2. Which of the following do you think is the biggest challenge facing Social Security? A. Benefits are too generous B. Fewer workers are paying into the program C. Growing senior population and longer retirements D. Benefits are not adequate E. Higher paid workers aren t paying enough into the program F. None of the above/other F. 10% A. 3% B. 18% E. 29% C. 23% D. 17% A. B. C. D. E. F. 3% 18% 23% 17% 29% 10% 3. Some people have proposed benefit changes in Social Security to protect vulnerable seniors and widows and assist caregivers. Which of the following do you agree with more? A. Improving benefits for vulnerable seniors, widows and caregivers should be part of any changes to Social Security B. We can t afford to improve benefits for vulnerable seniors, widows and caregivers C. We should improve benefits, but not before we put the program on stable financial ground C. 68% A. 21% B. 10% A. 21% B. 10% C. 68% 4. Social Security is the largest source of income for most current retirees. For others, Social Security is just one source of retirement income along with pensions, savings and investments. Thinking about future retirees, which do you agree with more? A. Social Security is too important to consider benefit changes for future retirees B. We need a balanced approach of benefit and revenue changes to make sure Social Security is there for future retirees C. The Social Security system is so broken that it should be completely changed for future retirees C. 10% B. 67% A. 23% A. 23% B. 67% C. 10% 5. Which statement do you agree with more: A. Everyone should get the benefits they ve earned so it s okay for upper income workers to get higher benefits because they contribute more into the system B. Wealthy seniors, with more than $250,000 a year of income, have other sources of retirement income and should get less maybe nothing from Social Security so we can make the program stronger for everyone else B. 40% A. 60% A. B. 60% 40% New Mexicans Have Their Say about Medicare and Social Security 4

5 Questionnaire 3: Results Questions Results 1. According to the Medicare Trustees, Medicare can pay full benefits for about 10 years and 90 percent of promised hospital benefits after that. In order to ensure all benefits can be paid, do you think changes should be made? A. Major changes should be made now B. We should wait a few years before making major changes C. Some changes should be made now, but we should wait before making any major changes D. No changes should be made D. 14% C. 46% A. 22% B. 18% A. 22% B. 18% C. 46% D. 14% 2. Which of the following do you think is the biggest challenge facing Medicare? A. Medicare payroll taxes are not keeping up with benefit needs B. Medicare premiums and out-of-pocket costs are too high C. Growing senior population and longer retirements D. Rising cost of health care E. On average, seniors receive more in Medicare benefits than they pay in F. None of the above/other E. 6% F. 16% D. 36% A. 9% B. 15% C. 18% A. 9% B. 15% C. 18% D. 36% E. 6% F. 16% 3. Which of these statements do you agree with more? A. All future retirees should continue to get guaranteed coverage and care as seniors do now B. Future retirees should be given a set amount of money to choose among many insurance plans with different benefits and costs B. 23% A. 77% A. 77% B. 23% 4. People have different views about changing Medicare. Which comes closest to your personal view? A. Medicare is too important to consider major changes B. We need a balanced approach of benefit and revenue changes to make sure Medicare is there for future retirees C. The Medicare system is so broken that it should be completely changed for future retirees C. 8% B. 62% A. 30% A. 30% B. 62% C. 8% 5. Medicare funding mostly comes from dedicated Medicare taxes, premiums from people in Medicare, and general federal revenues. As health care costs rise, what s the best source for additional Medicare funds? A. General federal revenues B. Premiums from people in Medicare C. Other D. Dedicated Medicare taxes E. None of the above E. 42% A. 22% B. 12% D. 25% A. 22% B. 12% C. 0% D. 25% E. 42% New Mexicans Have Their Say about Medicare and Social Security 5

6 Questionnaire 1 Q1. Which of these statements do you think describes Social Security the best? A. Social Security is okay as it is B. It needs minor changes C. It needs major changes D. It is in a state of crisis Q2. Which of these statements do you think describes Medicare the best? A. Medicare is okay as it is B. It needs minor changes C. It needs major changes D. It is in a state of crisis Q3. Do you expect to get more back from Medicare and Social Security than you have contributed, less, or about the same? State/ Congressional District Number of Any Respondents A B C D A B C D A B C NM 4,001 29% 29% 24% 19% 23% 28% 30% 18% 30% 29% 42% 1 1,259 27% 32% 25% 16% 22% 32% 31% 15% 30% 29% 41% 2 1,215 29% 25% 23% 23% 25% 24% 29% 21% 29% 29% 42% 3 1,492 29% 29% 23% 19% 23% 29% 30% 18% 30% 28% 41% A. More B. Less C. Same Questionnaire 1 continued Q4. When it comes to the future of Medicare and Social Security, which of the following do you expect: A. More funding will be needed to maintain the same benefits B. Benefits will be reduced C. Either A or B D. None of the above Q5. When it comes to changes being made to Social Security and Medicare in Washington, which of the following describes you the best: A. I want to make my voice heard B. I want to make my voice heard, but I don t think it will make any difference C. I am not interested in being involved State/ Congressional District Number of Any Respondents A B C D A B C NM 4,001 35% 12% 40% 13% 50% 45% 5% 1 1,259 36% 12% 39% 13% 51% 44% 5% 2 1,215 33% 13% 42% 13% 46% 50% 4% 3 1,492 36% 11% 39% 14% 53% 42% 5% New Mexicans Have Their Say about Medicare and Social Security 6

7 What People Are Saying We must have single-payer, socialized medicine, as had currently by congressional members and vets. Elisabeth, Santa Fe Elderly persons need a pension and basic medical benefits. Joseph, Placitas It needs to be strengthened for existing retired elders, and start to make it stronger for future retirees. Eugene, Isleta Have the wealthier contributors pay more into Social Security and receive somewhat less when they retire. Denise, Las Cruces Make Medicare payments equal for ALL retirees, and all medical services available to ALL retirees, equally. Convert to a federal national medical service, similar to Canada s system. Susanna, Albuquerque Increase the age for collecting benefits and increase the amount of earnings from which Social Security is taken. Christie, Placitas I have worked hard, and I need this money to survive along with my retirement. Making plans is all well and good, but things happen that you have not counted on, like divorce. I live alone, and my small retirement and Social Security will be all I have. Darlene, Clovis I think wealthy seniors should be made to contribute more to Social Security, and likewise, pay their fair share in taxes. Unfortunately, they also dictate policy. Anton, Belen Take the administration away from Congress and give it to another organization. Michael, Los Alamos Stop taking money from Social Security and putting it into the general tax fund. Anthony, Portales People rely on both Medicare and Social Security as safety nets, and they need to continue to be available. Some tweaking will, no doubt, be necessary. Marjorie, Bernalillo It is necessary to stop using Social Security funds for anything but Social Security. We can t fund wars and still return our older citizens the funds they have invested in their future. Bonnye, Roswell Payments to Social Security continue with no cap; foreign nationals do not receive benefits; individuals with no earned income, only investment income, pay into system; offshore US corporations pay a penalty for trying to evade obligations to their country. James, Santa Fe Social Security and Medicare must be strengthened to protect the elderly and those in need. Herman, Pecos Keep the government from spending the money and using treasury notes to cover the shortage. Terry, Ojo Sarco Increase income potential with attractive job creation for USA workers who are the most productive in the world. Trim and deeply punish the fraud by those who seek to take advantage of the system. Roy, Tularosa New Mexicans Have Their Say about Medicare and Social Security 7

8 What People Are Saying, continued Cut benefits by cleaning up the system to reduce multiple tests by doctors afraid of being sued. James, Corrales Washington is not interested or listening to what WE want. Only what they want. They are out of control. Chester, Deming Get Congress out of the mix. They messed it up, and they are making the issue a political one, rather than one of trust. John, Las Cruces I am 71, and I rely on both to survive. Yes, it is important! Marcia, Capitan Yes, we need to take care of our elders. We should be getting better at taking care of them, instead of cutting benefits that we have all contributed to all our lives. Brenda, Tijeras Totally remove the ceiling on income. As long as you are employed, then you should pay a flat percentage each payday, regardless if you make $1 or $100,000,000 a year. Also, tell Congress to be sure to make its payments on time on the Treasury bond interest, and to stop pushing it to the back of the room in favor of the federal agency of the day s budget. Thomas, Santa Fe Increase withholdings from current workers to maintain the fund for their retirement. Carole, Mora Stop the extreme end-of-life care that prolongs life that is not worth living. Make the doctors and the older sick retirees talk about end-of-life. End life support for those who have no chance to live. So much money is wasted to give someone a week or so more of life. Joan, Tucumcari Lower income people who have worked all their lives shouldn t have to worry about retiring. My grandmother worked all her life, and she only made $200 a month to live off of. Our government really needs work. Julie, Tijeras Increase the amount wealthy people pay into Social Security. Karen, Farmington Keep our government from borrowing from the people s retirement fund Social Security. We should have much more available than we now have if simple investment strategies were followed. Linda, Edgewood Require Congress to act like normal citizens, rather than feeling they are a privileged class. Donald, Alamogordo I believe both programs need to be overseen and administered by people who understand them, and who have a business background. They need to be run as a business, not as a give-away. Virginia, Bloomfield Find a way to increase the amount available to pay for benefits. If the extra money contributed by higher paid workers is invested wisely, the total available for payments should be higher. Louise, Montezuma Most people do NOT save enough for retirement, and, without Social Security, the number of older people living in poverty will increase dramatically. Paula, Truth or Consequences New Mexicans Have Their Say about Medicare and Social Security 8

9 What People Are Saying, continued Limit Social Security for higher income recipients who have 401(k) plans and other sources of income, so those who have only Social Security benefits for their retirement income will receive more. Carol, Santa Fe Mandatory pay deductions for all those working, regardless of income earned. Also, workers working and living abroad should have to pay Social Security, even though they do get tax breaks. Will, Los Alamos Make wealthy people pay more and have no income cap on wealthy payers, so they will pay more into the system. Barbara, Alto Social Security and Medicare need to remain strong, so that those who have earned the benefits can continue to receive them. That said, rising medical costs must be contained. Social Security COLAs need to keep up with the inflation rate. Roger, Carlsbad Take the Social Security out of the hands of Congress and other politicians. Continue mandatory deductions, but let the individual manage how/where to invest it. Do not let it go into the slush fund. James, Albuquerque Put more people back to work and have the government repay what they have taken in the past, and then they should keep their hands off. Jeff, Grants Increase contributions from high wage earners. These individuals typically live longer and collect more benefits, so higher premiums are appropriate. Cathleen, Farmington In today s world and economy, it is the only lifeline and a paradox for many Americans, who are now forced to work until they are much older, if they can find a job. Cassandra, Edgewood I think it is unfair to have to pay Social Security back if you go over the maximum earnings, since if you are still working, you are continuing to pay into Social Security. Jo, Silver City That s the problem; there s not one thing that needs to be done. Fixing it requires several changes. Increase the amount of income on which Social Security taxes are paid. Increase the percentage of income paid from 6.2% up to 6.3% or 6.4%, by both employee and employers. Delay full retirement age by another year phased in over 12 or 24 years, etc. Stephen, Albuquerque Stop the government from being able to borrow from the fund. It is self-sustaining, if it is used only for the purpose for which it was created. Belinda, Las Cruces Keep the government from improperly using funds (borrowing) from Social Security and failing to repay the monies. Larry, Mayhill Remove the wage cap on payments into Social Security and increase the age to receive benefits. Lois, Silver City Privatize it. Provide a set amount, and let the people spend it as they wish. Robert, Silver City New Mexicans Have Their Say about Medicare and Social Security 9

10 What People Are Saying, continued Increase taxes on the top two percent of earners, and take money out of general fund to pay out Medicare benefits. Cut military spending. Remove tax loopholes and remove subsidies for oil and ethanol. Richard, Santa Teresa Increase the amount people currently pay into the system. This is an insurance policy for your future. Paul, Rio Rancho Take more money from young and able working Americans to put in the system for them and everyone else when they get older. Cynthia, Las Cruces I do not believe that the extremely wealthy pay proportionally more into the system. However, one should receive what they have contributed and earned. The Social Security funds need to be invested in the most secure vehicles available, which will offer a steady growth return on investment. Also, it may be necessary to increase slightly each person s contribution on a monthly basis, say $5 a month. Over a 25 year working span, invested wisely, this will provide a fairly large return. And the $5 from a monthly income should not impact the person s current lifestyle too much. Helen, Albuquerque New Mexicans Have Their Say about Medicare and Social Security 10

11 earnedasay.org Why Social Security and Medicare Are Vital to New Mexico s Seniors Social Security and Medicare are more vital than ever for older Americans in today s troubled economy. Facing widespread loss of retirement savings and home equity, coupled with rising health care costs, seniors count on these programs to provide the foundation of income security and health care they need in retirement. SOCIAL SECURITY in New Mexico New Mexico s seniors count on Social Security benefits earned through a lifetime of work A total of 88 percent, or 248,606 of older (65+) New Mexico residents, received Social Security in The average annual benefit was only $13,000. Social Security accounted for 58 percent of the typical older New Mexican s income. Low- and middle-income seniors in New Mexico are even more reliant on Social Security s earned benefit, typically receiving 77 percent of their individual income from Social Security. Social Security keeps middle-income older New Mexicans from falling into poverty About 11 percent, or 29,765, older New Mexicans were in poverty. Without Social Security income, an additional 33 percent of older New Mexicans, or 87,230 people, would fall into poverty. Social Security plays an important role in New Mexico s economy Social Security provided $4.5 billion in benefits to all New Mexicans and $3.2 billion in benefits to New Mexicans 65 and older in MEDICARE in New Mexico Medicare provides guaranteed health coverage, but out-of-pocket costs are high On average, New Mexico s Medicare beneficiaries spent an estimated $5,400 on out-ofpocket health care costs in In 2011, average New Mexico seniors on Medicare spent an estimated 13 percent of their income on out-of-pocket health care costs. Medicare provides peace of mind for New Mexico seniors Nearly 96 percent of older New Mexico seniors, or 258,885, were enrolled in Medicare in In contrast, roughly 18 percent of New Mexico s 50-to 64-year-olds were uninsured in Medicare plays an important role in New Mexico s economy The Medicare program spent an estimated $2.83 billion on health care services for New Mexico s seniors in New Mexicans Have Their Say about Medicare and Social Security 11