September 16, 1992 PRESIDENT BUSH ON OLDER AMERICANS Protecting Social Security o The President has one guiding principle when it comes to Social Security: what isn't broken doesn't need fixing. The Social Security system is sound, and the best way to keep it sound is to leave it just the way it is. Keeping Social Security Sound and Strong o In his Midsession Review of the Budget, the President proposed to limit the growth of entitlements spending to the growth in inflation plus the growth in the beneficiary population. The President specifically excluded Social Security from the entitlements cap. o The President has ensured that Social Security benefits have been adjusted to keep pace with economic realities. Under the Bush Administration, beneficiaries have received full cost of living adjustments, including a 3.7% increase for 1992. Since President Bush took office, average benefits for retired workers have risen from $537 to $629 per month. Simplifying Medicare Forms o President Bush recognizes that the difficulty in completing and filing Medicare claims has been a burden for Older Americans who either have been charged a claim filing fee by their doctors or have found the forms so complex that they did not bother to file claims. To remedy this situation, legislation was enacted requiring doctors and suppliers of medical equipment to file all Medicare Insurance claims for their patients at no charge. Ensuring Quality, Affordable Health Care for Older Americans o President Bush has never proposed cuts in Medicare benefits for senior citizens. In fact, the President has publicly stated that he will not cut such benefits. As the President said, in introducing his Comprehensive Health Reform Program, "We will not -- repeat -- not cut benefits." o The President's plan to reform health insurance will cut the growth in health care costs. -- Savings that need to be realized through Medicare can be attained though administrative cost efficiencies and reduction of fraud in Medicare purchases of medical equipment. -- As a result of the President's reforms, no senior citizen will have any benefits reduced as part of health care reform. In fact, senior citizens could save money as a result of possible Medicare reforms -- due to lower coinsurance payments and lower Part B premiums that automatically result from many supplemental medical insurance reforms. o Funding for Medicare will have grown $34.2 billion since President Bush took office -- from $107.3 billion in FY 1989 to a proposed $141.5 billion for FY 1993. This will incorporate 2.3 million new beneficiaries into Medicare Parts A and B. o In January 1992, the Administration implemented changes in Medicare's doctor reimbursement methods. This new system increases the amount Medicare pays for primary care services, such as physician office visits, relative to fees paid for surgical and other specialist services. Creating Employment Opportunities o To help Older Americans contribute to the U.S. workforce, President Bush wants to increase the unnecessarily low Social Security earnings cap over the next 5 years to $20,000. This will allow active and experienced Older Americans to be employed without the fear of losing their Social Security benefits. Expanded Use of Coordinated Care o President Bush's health care plan will increase access to affordable, high quality health care. His plan encourages broader use of coordinated care in the public and private sectors, including preferred provider organizations (PPOs), health maintenance organizations (HMOs), and point of service plans. Coordinated care arrangements combine packages of basic health care services to help individuals share costs and pool risks. This holds down the growth in Medicare costs. Also under the President's plan, states would have incentives to use coordinated care to streamline administration of Medicaid. Fighting Crime to Ensure Personal Safety for Older Americans o President Bush believes that government's first responsibility is to make sure Americans are safe in their homes and communities. His anti-crime initiatives are achieving results in getting those that would threaten Older Americans off the streets and behind bars. o President Bush has responded to this task by increasing the staff, the funding and the activities of Federal law enforcement agencies. o Tough law and order judges and prosecutors, appointed by Presidents Bush and Reagan, are ensuring that the President's "Weed and Seed" and "Triggerlock" programs are catching career and violent street criminals, convicting them at a higher rate than ever, and sentencing them to prison for longer periods. # # #