Health Care Reform/ Social Security

The Capitol Insider for the Week of October 18, 2010

Major Events Last Week

Health Care Reform

A federal judge in Florida issued a ruling allowing a lawsuit to go forward challenging the constitutionality of the Affordable Care Act (ACA). The lawsuit was filed by 20 states, led by Florida, against the federal government to halt implementation of the new law. The ruling outlines which issues the states will be allowed to proceed with in the case. While Judge Roger Vinson dismissed several issues, he will allow the states to proceed on the following issues: whether the law's individual mandate requiring people to buy health insurance exceeds Congress's constitutional authority and whether the law's expansion of Medicaid eligibility to additional low-income people violates state sovereignty because it will require states to spend billions more on the program. Also last week, in a suit brought by private parties in Michigan, another federal judge upheld Congressional authority to establish the individual mandate to purchase health insurance. In Virginia, a similar lawsuit is scheduled to begin oral arguments today. The Arc and United Cerebral palsy (UCP) participated in an amicus brief supporting the ACA in the Virginia case. The judge in the Florida case refused to accept amicus briefs. These lawsuits could take years to be decided with certain cases making their way to the Supreme Court.

Social Security/ Cost of Living Adjustments (COLAs)

On October 15, the Social Security Administration (SSA) announced that monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2011 because there was no increase in the Consumer Price Index from the third quarter of 2008 (the last year a COLA was determined) to the third quarter of 2010. This will be the second consecutive year without an automatic COLA. In the SSI program, the maximum federal payment for an individual will remain at $674 per month. For couples, the maximum federal payment will remain at $1,011 per month. SSI resource limits will remain at $2,000 for individuals and $3,000 for couples.

SSA announced that it will also not increase the 2011 substantial gainful activity (SGA) level used to determine disability. Therefore, the SGA level for people with disabilities will remain at $1,000 per month in 2011, while the SGA level for people who are blind will remain at $1,640 per month. Similarly, while last year SSA increased the amount of earnings required to earn quarters of coverage, or work credits (used to determine whether an individual has contributed enough to the Social Security system to be eligible for disability, retirement, and survivor benefits), SSA has indicated that the earnings needed to earn a quarter of coverage will not increase for 2011. For more information, see:
http://www.socialsecurity.gov/pressoffice/pr/2011cola-pr.htm

Social Security /One-time payment

Following the SSA’s announcement of a second year without a COLA for Social Security and SSI beneficiaries, Democratic leadership of the House and Senate and the White House have announced support for legislation to enact a one-time payment of $250 for beneficiaries. For the typical retiree with a benefit of nearly $1,200 per month ($14,000 per year), the $250 payment amounts to about a 1.7 percent annual increase. Beneficiaries with disabilities, particularly those who receive SSI benefits, typically receive lower benefits than retirees; therefore a $250 payment would equate to an even higher percentage increase for them. Representative Earl Pomeroy (D-ND) introduced legislation in July to provide a one-time $250 payment, at a cost of $14 billion. House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) have indicated their intentions to have the House and Senate, respectively, vote on legislation to provide the $250 payment when the Congress returns for a lame duck session after the November elections. White House Press Secretary Robert Gibbs noted that President Obama will renew his call for a $250 Economic Recovery Payment to seniors this year, as well as to veterans and people with disabilities. He also urged "Members of Congress on both sides of the aisle to support our seniors, veterans and others with disabilities who depend on these benefits".