Schmidt, Wilbur J., secretary, State department of health and social Schnibbe, Henry, executive director, National Association of State Mental Dr. Kenneth Gaver, administrator, division of mental health, Salem, Page 806 Dr. Jonathan Leopold, commissioner of mental health, Montpelier, Vt__ Shain, Max, associate professor of medical care organization, school of public health, University of Michigan_-_ 500 495 Sparkman, Hon. John J., a U.S. Senator from the State of Alabama___ Stalnaker, Armand C., president, General American Life Insurance Co. of St. Louis___. 429 913 Tiebel, Harriet, executive director, American Occupational Therapy Association, accompanied by: Russell Dean, Washington representative_-_Townsend Foundation, John Doyle Elliott, secretary. 636 883 Tresnowski, Bernard R., senior vice president, for government operations, 772 Veterans of World War I, U.S.A., Edgar G. Burkhardt, national commander 498 Vohs, James, executive vice president, Kaiser Foundation Health Plan, Dr. Cecil C. Cutting, executive director, the Permanente Medical Michael Parker, legal adviser, Kaiser Foundation Health Plan, Inc___ Williams, Harry V., chairman, American Insurance Association, accompanied by: 482 DeRoy Thomas, staff, Hartford Insurance Group; and Andrew Kalmykow, counsel, American Insurance Association___ Williams, Hon. Harrison A., Jr., a U.S. Senator from the State of New Jersey 903 555 Wurzel, Dr. Edward M., executive director, American Association of Medical Clinics__ 468 Additional Information Articles: "Beyond the Liberal/Conservative Dichotomy-Toward a New Congressional Rating System". 48 121 Cash benefit proposals.. "An Inadvertent Loophole for Kickbacks". Committee on Finance press release announcing social security hearings__ Higher benefits for over 26 million people_-- Increased social security protection for nearly all workers.. 1 1 Benefit increases have restored purchasing power, but with a lag- 1 1 1 1 Automatic adjustment of maximum earnings base__. Widows benefit at age 65 increased to 100 percent of worker's benefit__ Disability protection___ Other improvements in social security protection. Average cash benefits. Major medicare provisions. Contributions to the solution of rising medical costs. Health facility planning.. Adavantages of prospective reimbursement__. Provisions of H.R. 17550 on prospective reimbursement.. Limitations on recognition of physician fee increases_. Improvements in medicare protection_-_ Charts-Continued Contribution rates for employers and employees. Estimated progress of the cash-benefits trust funds. Estimated progress of the hospital insurance trust fund.... Financing social security cash benefits.. Financing hospital insurance benefits--- Additional payments in first 12 months and number of people affected Value of benefits since 1954 under the law in effect since 1954 and under an assumed automatic adjustment system-- Value of benefits since 1940 under the increases enacted since 1940 and under an assumed automatic adjustment system_. Value of benefits since 1950 under the increases enacted since 1950 and under an assumed automatic adjustment system_ Idaho State fund requirements for nursing home payments—Comparison under present plan and under H.R. 17550 for fiscal year 1972__ Information supplied by the Department at the request of Committee members: Establishment of directives for States to emphasize outpatient care under medicaid programs__ Utilization review requirements applicable to physicians, hospitals, nursing homes, and home health agencies_. Carrier performance under medicare_. Administrative costs of Senator Long's drug amendment_. Series of estimates furnished by the Social Security Administration actuaries for the projected long-range costs of the medicare and Report on status of hospitals and extended care facilities with deficiencies 149 Number of welfare recipients involved in health care training programs 156 Effect of invalid marriages and divorces on eligibility for social security benefits___ 165 Task Force on Prescription Drugs-Fourth Interim Report-Quality and 101 Communications American Psychiatric Association, statement of Robert W. Gibson, M.D__ 650 161 man Blue Cross Association, George Heitler, vice president, legal counsel, and 782 408 653 Cunningham, Lloyd G. Lafayette Day Nurseries, Inc., statement_ Gibson, Robert W., M.D., statement on behalf of the American Psychiatric Hathaway, Hon. Stan, Governor, State of Wyoming, letter to Hon. Clifford 98 650 115 Leopold, Dr. Jonathan, commissioner of mental health, Montpelier, Vt., letter to the chairman... Lafayette Day Nurseries, Inc., Lafayette, La., statement of Lloyd G. 782 653 Tiemann, Hon. Norbert T., Governor, State of Nebraska, letter to Hon. National Association of Private Psychiatric Hospitals, statement of Robert 650 549 94 Text of H.R. 17550-.. Appendix A (Part 1) Appendix B (Part 1) Questions propounded in writing to the Department of Health, Education, and Welfare, by Senators Gore and Miller--- Page 167 325 SOCIAL SECURITY AMENDMENTS OF 1970 MONDAY, SEPTEMBER 14, 1970 U.S. SENATE, COMMITTEE ON FINANCE, Washington, D.C. The committee met, pursuant to notice, at 10 a.m., in room 221, New Senate Office Building, Senator Russell Long (chairman) presiding, President: Senators Long, Anderson, Talmadge, and Williams of Delaware. The CHAIRMAN. This hearing will now be in order. The Committee on Finance today begins receiving testimony from public witnesses on H.R. 17550, the Social Security Amendments of 1970. The committee had the benefit of the administration testimony on this measure on June 17 and July 14 and 15. We heard from the administration at that time in order to expedite the business of the committee and the Senate while the Department of Health, Education, and Welfare was working on revisions to the welfare expansion bill on which we have just concluded public hearings. H.R. 17550 provides for a 5-percent, across-the-board social security benefit increase effective January 1970. It also modifies the cash benefit social security programs in several respects. A major provision requiring careful discussion and consideration authorizes the Secretary of Health, Education, and Welfare to increase social security benefits whenever he determines that the cost of living has increased by 3 percent. A companion provision calls for automatic increases in the amount of wages, taxed every 2 years and thus, higher social security tax, based on the Secretary's determination of the extent as to which the average wages have risen since 1971. The committee will want to look most carefully at this provision since it may involve a delegation of the taxing power vested in Congress under the Constitution. The House bill also increases immediately medicare taxes by a staggering 77 percent over the next 25 years, in order to raise the $200 billion plus that will be needed to make up the projected 25-year deficit in the program. This proposed increase would be on top of the medicare tax, increase approved by Congress in 1967. A medicare deficit of this magnitude should not have occurred if the program had been operated on an aggressive hard-headed, business-like basis, and if Congress had been asked promptly to close the gaps in that program which now loom so large. The Finance Committee has held a series of legislative oversight hearings over the last year to examine the problems in the medicaremedicaid programs and we have published a detailed report including recommendations for strengthening the two programs. Some of these recommendations have already been incorporated by the House in their bill which we are considering today. We will, during the course of these hearings and in subsequent considerations be looking for ways of controlling excessive costs under medicare and medicaid. If we are successful in our efforts then hopefully we may not need to increase medicare taxes as sharply as the House bill proposes. This morning we will be pleased to have as our first witness a gentleman who appeared before us many times on behalf of the Social Security Administration. In view of the fact that the Senate is in session at this moment, and that a quorum call is going on in the Senate, because it had to quit for lack of a quorum on Friday, I am going to move that this committee stand in recess for the next 5 minutes at which time we will then proceed to hear from the witness who we had anticipated hearing from, Mr. Robert J. Myers. Thank you. (Short recess.) The CHAIRMAN. Mr. Myers, the testimony we expect to take here this morning is, in the judgment of the chairman of this committee, exceedingly important, and you are a man who is as well qualified as anyone to tell us why the program that we have is costing so much money, and what the prospects are for trying to keep these programs within their estimates for the future. Ordinarily, we don't conduct committee hearings while the Senate is in session. But in view of the late day in the session, and the desire of Congress to act on this bill before Congress adjourns we are conducting this hearing while the Senate is in session. There is another vote that will be taking place in the Senate within just a few moments and, therefore, I believe it would be best to wait until we have at least the possibility of a quorum present here in this committee and for that reason I am going to wait until 11 o'clock to call Mr. Myers. I would like to have Senators who are concerned about the cost of social security and public welfare here, Mr. Myers, and about the only way that I know to improve the possibility that they will is to postpone this hearing for a few more minutes until the Senate is through voting on the amendments that are presently pending. (Short recess.) The CHAIRMAN. The Chair will now call this meeting to order and call Mr. Robert Myers as a witness. Mr. Myers, we are pleased to have you here today and we appreciate your making yourself available to the committee to discuss the costs in this bill. Will you proceed in your own way, sir? STATEMENT OF ROBERT J. MYERS, FORMER CHIEF ACTUARY, SOCIAL SECURITY ADMINISTRATION Mr. MYERS. Thank you, Mr. Chairman. As you know, I was Chief Actuary of the Social Security Administration for a number of years, and I am now an independent consulting actuary and also, beginning in September, professor of actuarial science at Temple University. Of course, the testimony I am giving is on my own behalf and not on behalf of Temple University. |