August 7, 2007
Featured Topics:
Event - Versus Debate
Can Social Security Reform Wait?
Tuesday, July 24, 2007
The Social Security solvency debate has now lingered for years, despite continual calls for reform by the Social Security trustees. Some observers argue the contrary, that there's no reason to engage in reform now; let's wait and see what economic news brings. In any case, tentative efforts by Bill Clinton and George W. Bush have gone nowhere, and the creation of yet another Social Security commission got almost no traction.
Meanwhile, most projections of government deficits indicate that health care is the 800-pound gorilla in the budget debate. Perhaps we should just turn to health care and forget Social Security for a while. In this session of Versus, Gene Steuerle took the pro and Dean Baker the con on pushing for immediate Social Security reform.
(Listen to the podcast of the event)
Long-Term Care
A Proposal to Finance Long-Term Care Services through Medicare with an Income Tax Surcharge
The authors propose to expand Medicare to cover comprehensive long-term care services. Unlike the regressive payroll tax that finances Medicare's hospitalization coverage, this proposal would be financed by a surcharge on federal income taxes and would not increase tax burdens for low-income people. By providing long-term care insurance that protects the assets of older adults, this approach would eliminate the savings disincentives that afflict the means-tested Medicaid system.
(Full Report)
Meeting the Long-Term Care Needs of the Baby Boomers
The demand for long-term care services will surge in coming decades when the baby boomers reach their 80s. Declining family sizes, increasing childlessness and divorce rates, and rising female employment rates will limit the number of family caregivers. This study projects to 2040 the number of people ages 65 and older with disabilities and their use of long-term care services. The simulations show that even under the most optimistic scenario long-term care burdens on families and institutions will increase substantially.
(Full Report)
For more on this topic:
Federal Spending on Entitlement Programs
How Much Federal Spending is Uncontrollable?
Discussions of the federal budget often describe mandatory spending - on Social Security, Medicare, and similar programs - as "uncontrollable." In contrast with discretionary programs that Congress usually funds with annual appropriations, entitlement spending is determined by permanent laws specifying who qualifies for what benefits. This article discusses the rapid growth in mandatory spending driven by increased spending for health and retirement programs.
(Full Report)
The Government We Deserve: Do I Really Deserve Even More of Your Money?
In this column, part of a regular series, Senior Fellow C. Eugene Steuerle contends that rising Medicare costs force the federal government to reduce spending on education, after-school activities, and other important public services. He argues that we should pay for Medicare improvements by reducing retirement and health benefits for relatively young retirees.
(Full Report)
Upcoming Presentations
Urban Institute researchers will be giving the following presentations:
- August 9-10 | The 9th Annual Joint Conference of the Retirement Research Consortium | Washington, DC
Melissa Favreault will present her paper, co-authored by C. Eugene Steuerle, on the implications of career paths for Social Security.
Gordon Mermin will present new findings about how health and employment shocks affect future Social Security and pension benefits, from a paper he co-authored with Richard Johnson and Dan Murphy.
Richard Johnson will speak about research he is completing with Rudolph Penner and Desmond Toohey on the effects of out-of-pocket medical spending on retirement decisions.
- September 11 | The Ohio Association of Area Agencies on Aging Annual Conference | Columbus, OH
Richard Johnson will discuss the long-term care needs of the boomers in his closing luncheon keynote address.
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