North Carolinians. Have Their Say about Medicare and Social Security

Transcription

1 North Carolinians Have Their Say about Medicare and Social Security

2 North Carolinians 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, North Carolinians Have Their Say about Medicare and Social Security, features comments from residents of the Tar Heel State 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 North Carolinians 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. North Carolinians have earned their say about Medicare and Social Security. This is what they have told us. North Carolinians 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. 21% C. 23% A. 30% B. 26% A. 30% B. 26% C. 23% D. 21% 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. 29% A. 26% B. 27% A. 26% B. 27% C. 29% 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. 43% A. 29% B. 28% A. 29% B. 28% C. 43% 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. 41% A. 33% B. 13% A. 33% B. 13% C. 41% 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. 7% B. 46% A. 48% A. 48% B. 46% C. 7% North Carolinians 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. 46% A. 27% B. 16% A. 27% B. 16% C. 46% 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. 8% A. 3% B. 21% E. 30% C. 16% D. 21% A. 3% B. 21% C. 16% D. 21% E. 30% F. 8% 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. 65% A. 26% B. 9% A. 26% B. 9% C. 65% 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. 68% A. 22% A. 22% B. 68% 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. 36% A. 64% A. 64% B. 36% North Carolinians 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. 15% C. 45% A. 22% B. 18% A. 22% B. 18% C. 45% D. 15% 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. 5% F. 15% D. 37% A. 9% B. 18% C. 16% A. 9% B. 18% C. 16% D. 37% E. 5% F. 15% 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. 21% A. 79% A. 79% B. 21% 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. 6% B. 62% A. 32% A. 32% B. 62% C. 6% 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. 45% A. 23% B. 10% D. 22% A. 23% B. 10% C. 0% D. 22% E. 45% North Carolinians 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 NC 18,927 30% 26% 23% 21% 26% 27% 29% 18% 29% 28% 43% 1 1,349 35% 22% 23% 21% 29% 26% 28% 17% 30% 23% 47% 2 1,202 30% 24% 25% 20% 25% 26% 31% 18% 28% 29% 44% 3 1,501 27% 25% 24% 24% 25% 27% 28% 20% 29% 29% 42% 4 1,606 27% 32% 23% 18% 22% 32% 29% 17% 30% 29% 41% 5 1,481 32% 25% 21% 22% 26% 28% 29% 18% 29% 30% 41% 6 1,609 31% 24% 23% 22% 26% 26% 29% 19% 29% 29% 42% 7 1,541 29% 24% 25% 22% 25% 26% 30% 18% 28% 28% 44% 8 1,100 31% 23% 23% 22% 27% 26% 29% 18% 26% 29% 45% 9 1,518 27% 30% 23% 20% 25% 27% 31% 17% 28% 30% 41% 10 1,414 32% 22% 24% 22% 28% 23% 30% 19% 29% 28% 43% 11 1,829 31% 28% 22% 19% 27% 27% 28% 18% 31% 28% 41% 12 1,194 31% 24% 24% 21% 27% 26% 30% 17% 28% 25% 47% 13 1,435 27% 28% 23% 21% 23% 28% 30% 19% 27% 28% 45% 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 NC 18,927 33% 13% 41% 13% 48% 46% 7% 1 1,349 34% 13% 40% 14% 48% 43% 8% 2 1,202 32% 12% 40% 15% 46% 48% 6% 3 1,501 30% 14% 43% 13% 47% 47% 6% 4 1,606 33% 13% 45% 10% 51% 43% 7% 5 1,481 33% 13% 41% 13% 46% 48% 6% 6 1,609 35% 13% 39% 13% 45% 48% 6% 7 1,541 32% 12% 43% 13% 47% 47% 6% 8 1,100 33% 13% 41% 13% 49% 45% 5% 9 1,518 35% 12% 40% 13% 48% 46% 7% 10 1,414 31% 14% 41% 14% 45% 49% 6% 11 1,829 33% 13% 42% 12% 49% 45% 6% 12 1,194 34% 14% 39% 13% 54% 38% 8% 13 1,435 34% 12% 42% 12% 48% 45% 6% North Carolinians Have Their Say about Medicare and Social Security 6

7 What People Are Saying Means testing and benefits paid in relation to income and assets. Higher income earners with private pensions and high levels of assets for retirement should receive scaled down or no benefits to preserve benefits for the more needy. For those dependent entirely on Social Security benefits, even after a lifetime of hard work and paying into the system, benefits are already not enough to cover even the most basic necessities of life. For those people, benefits should absolutely not be cut back. The Social Security system, I believe, was initiated as a safety net for the elderly, not to further enrich wealthy retirees. Laurel, Cary Only pay to people who have paid in or if their spouse paid into the system. Stop using this money for anything other than Social Security. If the general health care cost could be controlled, Medicare would be stronger. Barbara, Purlear Make sure the money paid for Medicare is not used for any budget short falls; no more raiding the kitty. Also take Medicaid and Social Security disability programs that pay for people that never paid into these programs out of the Social Security payment system and create another way to support these programs. Grey, Morehead City Invest a portion of funds to create an endowment to manage the administrative costs of the plan. Walter, Durham Use the buying power to improve things like the advantage plans and lower the co-pays and premiums for these plans that do provide better care than basic Medicare. Do as any corporation would do and stop paying more and getting less just because it is the government. William, Asheville Repay the money Congress has taken from the fund. Joyce, Matthews I would up the retirement age to 65. Linda, Goldsboro Ensure that funds collected for Social Security are targeted for current and future benefits and not comingled with other taxes and budget priorities. Steven, Chocowinity Put a realistic cap on benefits for the upper 10 percent. Tom, Vilas Raise the maximum income level on which FICA taxes are collected. Apply means testing to cut off retirement benefits for millionaires and billionaires who don t need government retirement benefits. Thomas, Winston-Salem Change low hanging fruit features. Disability too generous vs. normal Social Security rates. Just because a man has kids under 18 at retirement, those children should not be eligible for monthly payments, etc. Louise, Cary Guarantee that Social Security will be there now and in the future. Do not decrease the amount paid out by Social Security; increase the amount. Richard, Cary A one-payer national health insurance plan would solve the problem for everyone. Joseph, Greensboro Vote for programs that will continue to give retirees their Social Security benefits. It is unfair to work all your life and find out that you won t be able to receive benefits taken out of your checks when you were able to work. Cassandra, Charlotte I would lower the rate but at the same time no ceiling should be allowed. Louis, West End North Carolinians Have Their Say about Medicare and Social Security 7

8 What People Are Saying, continued To make sure that everyone is entitled to Medicare receives it. To have checks in place for people that are younger than 65. Barbara, Raleigh Keep working and paying into system, if only on a part time basis. Allen, McLeansville Increase the amount contributed to Social Security. Patricia, Wilmington Discontinue using Social Security to fund other social financial shortfalls and keep it strictly for the retirement purpose, instead of a social safety net for other needs. I have contributed too for years. Lisa, Mount Airy Increase full retirement age to Attrition (death) could reduce the number of retirees and length of retirement. Clark, Asheville Do something to decrease the cost of healthcare. Karen, Raleigh Use dedicated Medicare funds paid by employees and employers ONLY for what they should be for in the first place: to provide health care for our seniors and citizens with identified disabilities. Alton, Rural Hall Make Social Security a means test. It should be based on your income level. When other sources of income exceed Social Security benefits, then Social Security payments for those wealthier should be reduced and then eliminated. Darryl, Concord Delay Social Security benefits until 68 or 70 years of age. George, Hendersonville Have workers be able to opt out of paying FICA, as long as they make contributions to other federally-sanctioned and guaranteed retirement saving systems. Mike, Garner Cut the wealthy out. High income retirees don t need Medicare say $50,000 or more a year income. Ronald, Mocksville Eliminate the cutoff point for payments into Social Security so that those who have a higher income are paying into the system for the entire year. Leslie, Matthews Wealthy retirees have tax breaks not available to most Americans and seniors. So either give the middle class more breaks so they can save for retirement OR reduce Social Security for the wealthy with a reducing cap. Joan, Asheville Have the government replace (pay back) all of the money that they borrowed (stole) from the people of this country. Social Security tax deductions are between the individual working person and their employer! This is not a monetary resource that the government should be using for other purposes. Also, where is all of the Social Security money from those that died and never collected their Social Security? THEN, raise the amount of Social Security by the smallest amount necessary to bring the Social Security balance to where it should be. This should never have been a case of robbing Peter to pay Paul! Alan, Raleigh My own parents did not need Social Security. They had sufficient other income. Richard, Greensboro Everyone has to put more money in to gain future benefits and investments should be for the long term growth potential. Maureen, Huntersville North Carolinians Have Their Say about Medicare and Social Security 8

9 What People Are Saying, continued Study health care costs and find where they can be trimmed. Now physicians, hospital administrators, and makers of drugs and healthcare equipment are making millions. We need a healthcare system; we don t have one now, just a patchwork of goods and services. Sally, Cary Stop taking away from it to fund failed government programs. Social Security used to work before the billions spent on useless untried programs. For goodness sakes we need someone to lead who has practical sense, not theoretical ideas!!!!!! Mary, Greensboro Change the plan for younger workers. There were no 401(k) IRA programs when we began working. Also, anyone who puts in should get something back. Start scaling back for those under 40. Steve, Raleigh Spend more resources to weed out cheaters and abusers of the Medicare system. Promote healthier lifestyles. Control health care s rising cost. Larry, Pittsboro Legislation to cap Medicare payments for name-brand and non-preferred prescription medicines, hospital stays, surgery, and out-patient long-term treatment. James, Wilmington The government should pay back all it has borrowed from Social Security and keep it separate from the general fund. Michael, Sylva Make sure that only the people who have contributed should get it. I am not in favor of paying illegal aliens Social Security if they are not US citizens and have not earned it. William, Archdale Make sure there are ways to afford to supplement it with 401(k) plans to young workers that live on the edge of their income now. Give them the option to invest some part of their Social Security tax to an investment plan as an option. Dennis, New Hill Stop letting big companies send their jobs overseas so that American workers can get good, high paying jobs and pay the max on Social Security and Medicare taxes. David, Cary Take the cap of earnings and have the 6.2% paid by employees applied to every dollar earned. Alan, Wake Forest Lower the retirement age. More folks out of the workforce will allow younger workers to replace them, lowering the unemployment rate. The effect will allow more workers to pay into the system. John, Raleigh Put controls on hospital and medical costs. Stop unnecessary procedures and control liability insurance premiums. Gail, Apex No income limits on Social Security taxes. Limit max payout for $2500 per month with yearly cost of living increases. Most people who have higher incomes have other retirement income. Barron, Hickory Raise retirement age, raise income cap on contributions, decrease contributions to wealthy. Timothy, Greensboro Invest in a savings plan or retirement plan at work at a younger age to help with Social Security benefits. Mary, Wilmington North Carolinians Have Their Say about Medicare and Social Security 9

10 What People Are Saying, continued One percent Social Security tax increase for both employee and employer phased in over five years (minimizes the pain), would add many years to the program. I read a study on this about ten years ago, but the tax increase concept was rejected. Also, remove the salary cap for taxable income as is the case with Medicare. Gary, Shelby I would look at making sure there is adequate revenue budgeted for Medicare and possibly looking at increasing the tax amount down the road. Sandra, Hickory Have all income, including interest, inheritance, and returns on investments and other non-wage income taxed at the same rate as wages. Voila! Problem solved. Candace, Red Springs Extortion of Medicare by the private sector is the problem. Costs billed to Medicare are exorbitant and unnecessary. Entire billing system needs to be revamped. Anne Marie, Mars Hill We need a leveling system. The more a senior earns from overall income should determine the amount they pay for benefits. Alfred, Etowah Always give a cost of living increase and do not raise our insurance that will take most of the increase. Allan, Charlotte Reduce military waste and budget, and divert savings to enhance Social Security. Melvin, Greensboro Increase amounts paid into the system now and have an adjustment annually for inflation. Pat, Salisbury Change the attitude of Congressmen and Senators about Social Security. Social Security is very important and should be a priority. Harold, Rutherford College Strengthen those who have earned the right to collect Social Security and make sure those who never paid into the program are not granted the right to collect. That would be fraud or a mistake if and when that occurs. Dorothy, Clayton Take off the cap on the income that is included in the percentage you pay to Social Security. This way those making more would also be contributing more. Karen, Charlotte More information provided to younger population so that they realize they will not be able to live off of Social Security as their sole source of income. Harriette, Rolesville Remove the $106,000 cap and do means testing. Penelope, Charlotte Increase limits of income taxed...significantly. People with significantly higher incomes should pay more, but benefits paid should have a cap. Virginia, Cary Tell the politicians in Washington that budget cuts are off the table when it comes to Social Security and the elderly. Joy, Andrews Go to a single-payer health care system for everyone, not just for seniors. Totally revamp the healthcare system to emphasize prevention, not costly and ineffective end of life procedures. We will all die anyway. Health care for all is a quality of life issue. Sarah, Hillsborough North Carolinians Have Their Say about Medicare and Social Security 10

11 earnedasay.org Why Social Security and Medicare Are Vital to North Carolina 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 North Carolina North Carolina s seniors count on Social Security benefits earned through a lifetime of work A total of 93 percent, or 1,193,445 of older (65+) North Carolina residents, received Social Security in The average annual benefit was only $14,000. Social Security accounted for 66 percent of the typical older North Carolinan s income. Low- and middle-income seniors in North Carolina are even more reliant on Social Security s earned benefit, typically receiving 80 percent of their individual income from Social Security. Social Security keeps middle-income older North Carolinans from falling into poverty About 10 percent, or 114,557, older North Carolinans were in poverty. Without Social Security income, an additional 42 percent of older North Carolinans, or 493,034 people, would fall into poverty. Social Security plays an important role in North Carolina s economy Social Security provided $23.5 billion in benefits to all North Carolinans and $16.7 billion in benefits to North Carolinans 65 and older in MEDICARE IN North Carolina Medicare provides guaranteed health coverage, but out-of-pocket costs are high On average, North Carolina s Medicare beneficiaries spent an estimated $5,200 on out-ofpocket health care costs in In 2011, average North Carolina seniors on Medicare spent an estimated 14 percent of their income on out-of-pocket health care costs. Medicare provides peace of mind for North Carolina seniors Nearly 98 percent of older North Carolina seniors, or 1,191,775, were enrolled in Medicare in In contrast, roughly 15 percent of North Carolina s 50-to 64-year-olds were uninsured in Medicare plays an important role in North Carolina s economy The Medicare program spent an estimated $12.5 billion on health care services for North Carolina s seniors in North Carolinians Have Their Say about Medicare and Social Security 11