Future of medicare, social security, you’ve earned a say online chat

DAVID CERTNER, AARP: Thanks, Dan. While AARP has many principles and positions on issues, our You’ve Earned a Say initiative this year is based on providing information about the options

that are being discussed in Washington and getting feedback from our members and other Americans. We believe you have contributed to these programs throughout your working life, and you

deserve to be heard. As to your suggestion, there are several proposals on the table in Washington to raise the payroll tax cap or eliminate it altogether as a way of helping to fund Social

Security in the future. Right now, as you may know, the Social Security payroll tax is applied to the first $110,100 of earnings, or 84 percent of all covered wages. Raising the cap back to

its previous level of 90 percent of wages (similar to your suggestion) is estimated to fill about one-third of the future funding gap. If all earnings were immediately subject to the Social

Security tax, the new revenue would fill most of the funding gap. For more information about this and other proposals on the table in Washington, check out the June 2012 issue of the AARP

Bulletin. COMMENT FROM RONALD YOUNG: Are future changes in Social Security going to affect present recipients? See more Health & Wellness offers > DAVID CERTNER, AARP: Most of the

changes that are being discussed would be phased in over time, but there are some proposed changes that would impact current seniors. In particular, some would change the calculation of the

Social Security cost-of-living adjustment (COLA) so the COLA would be lower every year. This is sometimes referred to as moving to a "chained CPI" — a new way of calculating the

COLA that would affect current beneficiaries. COMMENT FROM ELIZABETH BORG: Is the COLA Social Security gives out (at least this year) based on the total income of the receiver or the amount

received per month from Social Security. Or is it something else? DAVID CERTNER, AARP: Social Security’s annual cost of living adjustment — or COLA — is based on the increase in the consumer

price index (CPI), a calculation of price increases on goods and services throughout the economy. The benefit amount that each individual receives is increased by the CPI. Recently, there

were two years with no COLA because, given the recession, the CPI did not increase. COMMENT FROM META KIRBY: I want to know why the fraud in Medicare and Medicaid has not been more

effectively enforced? There is a ton of money there we could use to help shore up Medicare and Medicaid if they would just go after the fraud. I know they are starting to do that in Houston.

However, when I sent a letter to Medicare three years ago giving them names, companies, etc., of people who were committing fraud, to this date (after two more letters), Medicare has not

even bothered to reply! I know they got them because they were sent certified, and I received the green cards back. DAVID CERTNER, AARP: Thanks, Meta, for raising this question. We agree

that fraud in the health care system continues to be a problem, and that is true for the Medicare and Medicaid programs as well. Recently, the law was changed to provide more tools to fight

fraud, and there is other legislation pending. Medicare is also becoming more aggressive in fighting fraud, which costs both individuals and the government more money, recovering over $4

billion in 2011. I applaud you for joining the fight to stop Medicare fraud, and we can all help in this effort. For more information, you can go to AARP.org/fightfraud, or participate in

our free webinar on June 12 (AARP.org/webinars). You can also report Medicare fraud by calling 1-800-MEDICARE. In addition, the Senior Medicare Patrol can help, as can the Medicare &

Medicaid Services website for fraud and abuse. NEXT:  WHEN IS IT BEST TO START TAKING BENEFITS. » COMMENT FROM J. FERRELL: Experts disagree on when to start taking benefits. What is your

opinion? DAVID CERTNER, AARP: When to best take Social Security often depends on your personal circumstances. Generally, the earlier you take your benefits, the greater the actuarial

reduction. So if you can wait to take your benefits, they’ll be higher for the rest of your lifetime. The AARP Social Security Calculator will help estimate your Social Security benefits and

show you the best time to claim Social Security. COMMENT FROM CAROL SINGLETON: Why can't Medicare negotiate with drug companies to lower prices on drugs to seniors? Even Canada's

prices are lower than ours, on the same products. Not fair!! DAVID CERTNER, AARP: Carol, we agree that Medicare should have the power to negotiate for lower drug costs. This is especially

needed where there is no competition for the brand-name drug. The United States pays the highest drug prices in the world. AARP has supported legislation to allow for the safe importation of

lower-priced drugs from Canada and other nations. Doing this would increase competition and lead to lower prices in our country. COMMENT FROM MICHAEL PODUFALY: Is there any truth to the

rumor that the Medicare Part B premium will double in the next two years without Social Security doubling also? DAVID CERTNER, AARP: No. As you may know, the standard Part B premiums — now

$99 per month — generally increase every year with the increase in total Part B costs. While we expect the premiums to go up annually, they are generally expected to increase at a few

dollars per month, as they have done in the past. COMMENT FROM KITTY RUDERMAN: Can we prevent Congress from making their threatened cuts to Medicare? We need this program intact.