cording to his estimates, the ultimate social security fund in approximately 50 years, would amount to $150 billion. I honored him for that because it was very frank and honest testimony, and he gave it even though it did not coincide with the wishes of those who were around him. But even in this estimate, he did not take into account this safety factor of the increase in average income. There is that element of safety. The Department's Chief Actuary, Mr. Myers, has always been very careful in excluding this safety factor. I push him again and again on this, but he will never take it into consideration in making his estimates. Nevertheless, it has always been there, and it is an important factor which has enabled the social security fund to remain solvent and to accumulate its reserves despite the increases in benefits to which you very properly point. Mr. HILL. I think the thing, Senator, if I may say so, Senator, that concerns us most is the attitude of some of the people very closely involved in writing these bills. For example Under Secretary of Health, Education, and Welfare Cohen a few years ago made the statement that the ideal would be reached when social benefit taxes for every American family were as high as the Federal income taxes. This is something that concerns us very much. Senator DOUGLAS. Well, I daresay that everyone has made foolish statements at one time or another in his life. [Laughter.] Mr. HILL. With that I cannot quarrel, sir. Senator DOUGLAS. The American Medical Association has made foolish statements, and sometimes even private insurance companies have made foolish statements, and I have got some of them in my files, but I do not believe in bringing them out because you have got to allow for a certain degree of exaggeration in the arguments of human beings, a certain gilding of the lily, a certain degree of puffing advertising, so to speak. I believe the law permits puffing advertising. But I want to assure you that is not the intent of the sponsors of this measure. Mr. HILL. Thank you, gentlemen. Senator ANDERSON. Thank you very much. We will meet tomorrow morning at 10 o'clock. (Whereupon, at 1:10 p.m., the committee adjourned to reconvene at 10 a.m. on Friday, May 14, 1965.) SOCIAL SECURITY FRIDAY, MAY 14, 1965 U.S. SENATE, COMMITTEE ON FINANCE, The committee met, pursuant to recess, at 10 a.m., in room 2221, New Senate Office Building, Senator Clinton P. Anderson presiding. Present: Senators Anderson, Long, Douglas, Williams, and Curtis. Also present: Elizabeth B. Springer, chief clerk. Senator ANDERSON. The committee will be in order. Congressman Emanuel Celler, chairman of the steering committee of the New York delegation, has submitted a written statement for the record in lieu of being here. His statement is being inserted in the record today. (The statement referred to follows:) STATEMENT OF CONGRESSMAN EMANUEL CELLER, OF NEW YORK New York State has been engaged, for the past 2 years, in planning a comprehensive program to meet all the mental health needs of the people through the combined efforts of Federal, State, and local government and with the cooperation of private and voluntary agencies. As a separate, but coordinated effort of the overall planning, an 86-member committee has been carrying on a statewide mental retardation planning effort since June 1964 under a 1 year, $60,000 grant from the Federal Government. In contrast, mental health planning has gone forward under two annual Federal grants totaling more than $500,000. Mental retardation affects about 3 percent of the entire population. Based on this premise, it has been estimated that the number of mentally retarded in New York State was 500,000 in 1963 and it is anticipated this will rise to nearly 600,000 in 1975 and 700,000 in 1990. Above and beyond the specialized programs required by some, the goal of both immediate and future planning for these mentally handicapped is a complete and closely interrelated range of services, similar to those provided for other members of society, that will permit them to remain in the community. As a result of the shorter planning period, however, mental retardation efforts on a comprehensive basis in New York, as well as throughout the Nation, have lagged far behind the mental illness component in the total mental health program. In a State of the size and complexity of New York the task of identifying gaps in existing services and determining future programs is staggering. While some definitive recommendations will be forthcoming in the initial report of the statewide planning committee, there is a clear need for a number of special in-depth studies which cannot conceivably be carried out in the period for which planning funds are now available. At best, these recommendations will be but a beginning. The challenging task of providing maximum care for these less fortunate State citizens requires a continuation of federally supported planning efforts. Senator ANDERSON. The first witness is William C. Fitch, American Association of Retired Persons and National Retired Teachers. Mr. Fitch. 47-140-65-pt. 2 -20 827 STATEMENT OF WILLIAM C. FITCH, EXECUTIVE DIRECTOR, NATIONAL RETIRED TEACHERS ASSOCIATION, AMERICAN ASSOCIATION OF RETIRED PERSONS; ACCOMPANIED BY ERNEST GIDDINGS, LEGISLATIVE REPRESENTATIVE OF THE ASSOCIATION Mr. FITCH. Mr. Chairman and distinguished members of the Senate Finance Committee, my name is William C. Fitch. I am the executive director of the National Retired Teachers Association and the American Association of Retired Persons. With me is Mr. Ernest Giddings who is the legislative representative of the associations. The combined membership of our associations totals almost 1 million individuals 55 years of age or older. The associations are nonprofit, nonpartisan, and are dedicated to promoting age as an achievement, encouraging and creating opportunities for purposeful living throughout the later years, and to maintaining independence and dignity as the right of all citizens, including the 18 million older Americans in our population today. Our longtime interest in the health and welfare of older persons is documented by the fact that the National Retired Teachers Association pioneered the first health insurance program for persons over 65 that had no age limit, could not be canceled, and required no physical examination. Our drug-by-mail service has filled over 2 million prescriptions of our members at considerable savings. Our entire service program is designed to assist and encourage older persons to help themselves and each other. We have favored a national health insurance program and in her testimony before the House Ways and Means Committee in July of 1959, the president and founder of our associations, Dr. Ethel Percy Andrus, urged "the best medical coverage for that portion of our population-men of 65 or over and women 62 or over-which is not eligible for and/or being served by public assistance in its medical care program." The National Retired Teachers Association and the American Association of Retired Persons have maintained that health insurance legislation adopted by the Congress should take into consideration (1) the dignity and independence of the aged; (2) the hospital, health, and medical needs of all the aged; (3) the valuable experience private companies have gained in the field of health insurance; and (4) the maintenance of the actuarial soundness of the social security program. Because H.R. 6675 meets most of these aims, I welcome this opportunity to say that our associations are in basic accord with the provisions of the bill and urge early enactment by the Congress. Our support of the bill does not imply complete accord with all of its provisions, several of which I would like to call to your attention for possible consideration in drafting the final bill. Under Part B: Supplementary Health Insurance Benefits to the Aged there is established a voluntary insurance program to provide health insurance benefits for individuals 65 years of age or over who elect to enroll under such a program to be financed from premium payments by enrollees together with contribution from funds appropriated by the Federal Government. This section is not understood by most persons and implies a freedom of choice among carriers of private insurance which is not the intent of the bill as presently written. We would urge that the individual be permitted the opportunity to make a selection of a private insurance carrier from among those approved by the Secretary of Health, Education, and Welfare, similar to the plan now offered to retired civil service employees. As more of our members become familiar with the details of H.R. 6675, we are being requested to call your attention to that section of the bill which denies them the 3 percent of their adjusted gross income which is permitted as a deductible expense for medical care for income tax purposes. To the elderly who have been able to claim this deduction for medical expenses, this is, and I quote from one of the letters, "giving with one hand and taking it away with the other." We would ask that you review the section on medical expense deduction and eliminate the 3-percent limitation. It is obvious that a program of such magnitude cannot anticipate all of the details necessary to implement each of the provisions. We are well aware that such items as "utilization review," "reasonable cost," "spell of illness," and many other definitions must be worked out with those who are best informed. To the extent that our associations with their publications, responsible local units and chapters throughout the Nation and almost 1 million articulate members can be helpful in rendering a national service in the implementation of this legislation, we are prepared. It is not my intention to refer to Title III: Social Security Amendments as a postscript to this testimony on H.R. 6675. We are aware that several of our proposals have long-range significance. We are deeply concerned that certain provisions of this legislation do not take into consideration all of the relevant facts which are necessary to produce legislation which will effectively mitigate the social and economic problems with which this legislation is concerned. We believe that certain provisions in this legislation only partially deal with problems of vital importance to the Nation's older citizens. H.R. 6675 provides for a basic benefit of $35 for certain persons age 72 or over who have a minimum of three quarters of coverage. At present there are about 1.5 million persons age 72 or over who are excluded from social security benefits primarily because their working life was completed, or substantially completed, before social security coverage was extended to their former work. Many of these people have less than six quarters of coverage. Many have no quarters of coverage. Most of these people have not qualified and will not be able to qualify for social security because, after social security coverage was extended to their former work, they have been unable and are unable to work long enough to acquire the necessary quarters of cover age. Death will eliminate this discrimination if the Congress does not. We believe that a more just, equitable, and a more American way to deal with this problem is for Congress to act now to provide social security coverage for these people. This legislation is laudable in that it apparently recognizes most of these facts, but it can be criticized in that it fails to go as far as the facts indicate it should. |