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Should “means testing” exist for Social Security and Medicare? - The Hill
In this somewhat unconventional opinion piece, the author opines that both the Social Security and Medicare programs are suffering financial difficulties, largely because many who receive benefits do not actually need them. The author, himself a fairly affluent businessman, contends that although he is eligible for and has earned benefits from both of these federal retirement and healthcare programs, he can afford to pay for his retirement and healthcare from his own resources, and doesn’t really need government assistance. He posits that requiring a “means testing” criteria for benefits would go a long ways toward restoring both programs to financial soundness.
This, of course, is not the first time the idea of “means testing” has been floated. In fact, some in Congress have advocated for years that those who are more affluent should shoulder an increased tax burden to improve the programs’ finances. For its part, the Association of Mature American Citizens (AMAC) has advocated, as part of its Social Security Guarantee , that Social Security benefit payments could be tailored to a person’s financial status to help improve the program’s finances.
In any case, this interesting perspective on Social Security and Medicare reform opines that “People who don’t need help from the government shouldn’t be automatically getting it. Means testing should be required to qualify for Social Security and Medicare. Rather than just receiving checks once a certain age is reached, recipients should have to prove that they are in need of these funds.” Click here to read the full opinion piece by Gene Marks, appearing at The Hill.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases via relatively slight program modifications, including cost-of-living adjustment (COLA) process changes and modifications to the formulas for calculation of payments to higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.