Massive cuts are being proposed which will impact the way in which Social Security and Medicaid are allocated in the United States. The Obama administration has floated a plan known as chained Consumer Price Index (CPI) along with a goal of trimming healthcare funding for the poor and elderly by $400 billion.
These efforts are purportedly connected with the need to trim the federal budget deficit. A “sequester” was imposed earlier this year which is already resulting in furloughs for government workers, lay-offs in the healthcare industry and the elimination of programs which have benefitted low-income people for decades.
The chained CPI will lead to severe reductions of the limited increases in payments based upon the rise in inflation and the cost of living. These reforms, if instituted, would also be applied to benefits received by retired government employees, veterans and recipients of Supplemental Security Income (SSI).
In a recent study released by the Center for Global Policy Solutions (CGPS), the research institute placed the Obama administration proposals within a broader sociological context where the historic national oppression of African Americans has rendered this community to lower-wages and accumulated household wealth. Compounding this centuries-old reality, the economic crisis of the last five years has also disproportionately driven down the living standards of African Americans and other peoples of color.
After retirement African Americans face even lower incomes through pensions and social security payments which are based on earnings during the last few years of their employment. Any cuts to the incremental increases in monthly payments for retirees can only result in deeper economic challenges and poverty.
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With specific reference to Medicaid, the Joint Center for Economic and Political Studies (JCEPS) wrote over a year ago that reductions in funding for this program would cause tremendous suffering among the African American and Latino populations. The same research institute argues that these cuts would in fact increase costs for healthcare companies since people would still need care whether it is funded by the government or not.
The report, Medicaid: A Lifeline for Blacks and Latinos with Serious Health Care Needs, published by Families USA, “reveals that making cuts to Medicaid fails to reduce costs, instead it shifts the burden to states, families, hospitals and the uninsured. In fact, in some cases, the report notes, cutting assistance for treatment can actually increase costs over the long run.”
JCEPS continues pointing out that “As policymakers consider sharp cutbacks in the Medicaid program, this report brings an important potential consequence of their actions to the table – that cutting Medicaid will likely hit hardest at communities of color and, in particular, those who depend on the program to manage and treat their chronic illnesses,” said Ralph B. Everett, president and CEO of the Joint Center for Political and Economic Studies. (October 2011)
Read more at Global Research.