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State of Medicare, Social Security, Medicaid Not High on President's or Public's Agenda

State of Union address at 9 p.m. EST expected to have little on "senior issues"

Jan. 31, 2006 – Senior citizens concerned about the future of Medicare, Social Security and Medicaid will probably not hear much encouraging news from President Bush, when he steps before the television cameras at 9:01 EST tonight for his State of the Union. Health care cost is expected to get attention, but the proposals are to be more about the health savings plans Bush introduced in 2003 that have not, yet, caught on. Seniors are not eligible for these tax deductible health insurance plans.

 

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If the speech addresses the top concerns of Americans, it will certainly hit terrorism, education and the economy. These, says a new survey by the Pew Research Center for the People and the Press, are the top three issues with U.S. adults. (See chart below.)

"As in recent years, defending the nation against terrorism remains the public's leading priority for the president and Congress. Eight-in-ten rate terrorism defense as a top policy priority, which is largely unchanged from past years," the Pew report says.

"As was the case a year ago, improving education and strengthening the economy rate behind protecting the country against terrorism. However, the number rating the economy as a top priority has declined significantly over the past year (from 75% to 66%). Roughly as many now view improving the job situation as a top priority as say that about improving the overall economy."

The Pew report says, "Several domestic priorities have moved up on the public's agenda since January 2005. More than six-in-ten (62%) rate reducing crime as a top priority, up from 53% last year. That is the highest number citing crime prevention as a leading priority since January 2001 (76%).

"Dealing with the nation's energy problem and protecting the environment have both become more important priorities in the public's view. A solid majority (58%) now says dealing with energy is a top priority, up 11 points from January 2005. About as many (57%) rate protecting the environment as a top priority; a year ago, 49% rated environmental protection as a top policy priority.

"By contrast, fewer Americans now view strengthening the military as a top priority than in recent years. Overall, 42% rate strengthening the military as a leading policy priority. From 2001 through 2005, about half of the public consistently rated this objective as a top priority (52% in 2005).

Medicare

It is hard to conceive that the President will not mention the Medicare drug program, mired in problems since its January 1 beginning. Explaining how these problems are being addressed is almost a necessity.

He has been urged by many to also propose some solution to the future costs of the Medicare program. It is not an easy topic for him to approach, however, with massive cuts expected on Wednesday in both Medicare and Medicaid when the House votes on the final budget reconciliation bill.

The American Academy of Actuaries, in urging a solution to Medicare's cost, points out:
"Total Medicare spending was $309 billion in 2004, or 2.6 percent of the nation's Gross Domestic Product (GDP). Medicare spending will likely increase to 3.3 percent of GDP in 2006, and then is expected to double to nearly 7 percent of GDP by 2030, continuing to rise thereafter. If total federal revenues continue at their historical average of about 19 percent of GDP, and if no changes are made to the program, Medicare spending will take up a third of all federal revenues by 2030."

But, in the Pew Poll, securing Medicare has dropped from a high concern by 71 percent of the public in 2001, to only 62 percent in 2006.

Social Security has seen a similar swing. In 2001, securing Social Security of rate as a top priority by 74 percent, which has dropped to only 64 percent in 2006.

Just a year ago, Social Security was the center piece of the State of the Union address. President Bush said the words “Social Security” 18 times in the 2005 speech.

 Bush said, then, “One of America's most important institutions -- a symbol of the trust between generations -- is also in need of wise and effective reform. Social Security was a great moral success of the 20th century, and we must honor its great purposes in this new century. The system, however, on its current path, is headed toward bankruptcy. And so we must join together to strengthen and save Social Security.”

Thus he began the introduction to his reform plan that was supported by private investment accounts. The proposal floundered badly and has been seldom mentioned in recent months.

These senior programs were high on the Bush agenda, when he addressed the joint session of Congress at the beginning of his Presidency in 2001. He mentioned Social Security 14 times and Medicare 12 times.

"Another priority in my budget is to keep the vital promises of Medicare and Social Security, and together we will do so," he said in 2001.  "To meet the health care needs of all America's seniors, we double the Medicare budget over the next 10 years."

 

 

 

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