BILL ANALYSIS Ó
AJR 7
Page 1
ASSEMBLY THIRD READING
AJR 7 (Bonta)
As Introduced January 30, 2013
Majority vote
AGING 5-2
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|Ayes:|Yamada, Brown, Daly, |
| |Gray, Levine |
| | |
|-----+--------------------------|
|Nays:|Wagner, Grove |
| | |
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SUMMARY : Memorializes the President and the United States
(U.S.) Congress to exclude social security, Medicare, and
Medicaid from being a part of any legislation to reduce the
federal deficit. Among others, this resolution makes the
following findings and declarations:
1) Social security, Medicare, and Medicaid are fundamental
protections against risks that all Californians face and
five million Californians, including 3.4 million retirees
and 700,000 disabled workers, rely upon social security and
Medicare as the foundations of their health and financial
security.
2) Social security is the primary source of life insurance
protection for 370,000 California children, and social
security lifts over 1.1 million Californians out of poverty;
contributes nearly $67 billion in economic activity; and,
benefits nine million veterans nationwide.
3) Social security funding is independent of the federal
government, does not, and by law never will, contribute to
the federal deficit.
4) Social security currently enjoys a surplus which is
expected to grow to $3.1 trillion by 2020, and is currently
projected as solvent through 2032, and that shortfalls
thereafter could be mitigated by restoration of taxes cut in
2001 and 2003.
AJR 7
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5) Forty-seven percent of elderly Californians struggle to
meet monthly obligations, and one-half of all working
Californians will not have enough to maintain their current
standard of living in retirement.
6) Medicare insures four million older Californians and has
controlled costs better than private insurance, particularly
administrative costs.
7) Medicaid supports the health care needs of 11 million
low-income children, adults, elders and disabled individuals
in need of long-term services and supports.
FISCAL EFFECT : Unknown. This resolution is keyed non-fiscal by
the Legislative Counsel.
COMMENTS :
1) Author's purpose : AJR 7 requests the President and the
U.S. Congress to exclude social security, Medicare, and
Medicaid from being a part of any federal legislation to
reduce the federal deficit. The measure expresses the
Legislature's opposition to cuts to social security,
Medicare, and Medicaid (Medi-Cal in California), and calls
upon California's congressional representatives to vote
against cuts to social security, Medicare, and Medicaid and
to consider improving those systems in ways that would
strengthen their protections.
2) Medicare : Medicare is a national social health insurance
program, administered since 1965, that guarantees access to
health care for Americans ages 65 and older, as well as
younger people with disabilities, or end stage renal
disease. In 2011, Medicare provided health insurance to
48.7 million people-40.4 million age 65 and older and 8.3
million younger people with disabilities. On average,
Medicare covers about half (48%) of health care costs for
enrollees. Medicare is funded through payroll taxes paid by
most employees, employers, and people who are self-employed.
3) Medicaid : Medicaid is the U.S. health insurance program
for certain people and families with low incomes and
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resources. Medicaid is jointly financed by states and the
federal government. Each state establishes and administers
its own Medicaid program and determines the type, amount,
duration, and scope of services covered within broad federal
guidelines. In California, this is known as Medi-Cal
(7,505,841 enrollees as of January 1, 2011). States have
the flexibility to cover other optional eligibility groups
and set eligibility criteria within the federal standards.
The Affordable Care Act of 2010 creates a new national
Medicaid minimum eligibility level that covers most
Americans with household income up to 133% of the federal
poverty level. Medicaid is funded through general revenues
and other special financing structures that create revenue
to support services and benefits.
4) Social security : Social security is a social income
insurance program consisting of retirement, disability, and
survivors' benefits. Most American workers pay social
security taxes on their earnings; future benefits are based
on the employees' contributions. Social security is the
basis of economic security for millions of
Americans-retirees, disabled persons, and families of
retired, disabled or deceased workers. About 157 million
Americans pay social security taxes and 56 million collected
monthly benefits in 2012. Social security is financed
through a dedicated payroll tax. Employers and employees
each pay 6.2% of wages up to the taxable maximum of $113,700
(in 2013), while the self-employed pay 12.4%.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990
FN: 0000042