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Older Americans Issues - GRF Statements - General
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Older Americans Issues - GRF Statements - General
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President Ford Committee Records
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The original documents are located in Box F54, folder "Older Americans Issues - GRF
Statements - General" of the President Ford Committee Campaign Records at the Gerald
R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the
United States of America her copyrights in all of her husband's unpublished writings in National
Archives collections. Works prepared by U.S. Government employees as part of their official
duties are in the public domain. The copyrights to materials written by other individuals or
organizations are presumed to remain with them. If you think any of the information displayed
in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential
Library.
OLDER AMERICANS
"Older Americans continue to enrich our lives with
their vision, strength and experience. They have earned
the right to live securely, comfortably, and independently.
The proposals that I am sending to the Congress offer sig-
nificant improvements in the quality of life for all older
Americans.
11
Remarks upon signing Older
Americans Message to Congress
February 9, 1976
"As President, I intend to do everything in my power
to help our nation demonstrate it deep concern for the
dignity and well-being of our older generation. 11
Remarks to a group of Senior
Citizens
St. Petersburg, Florida
February 14, 1976
SOCIAL SECURITY TRUST FUND
"I am concerned about the integrity of our Social
Security Trust Fund that enables people--those retired
and those still working who will retire to count on this
source of retirement income. Younger workers watch their
deductions rise and wonder if they will be adequately
protected in the future. We must meet this challenge head
on. Simple arithmetic warns all of us that the Social
Security Trust Fund is headed for trouble. Unless we
act soon to make sure the fund takes in as much as it
pays out, there will be no security for old or young.
I must, therefore, recommend a 3/10 of one per cent
increase in both employer and employee social security
taxes effective January 1, 1977. This will cost each
covered employee less than one extra dollar a week and
will insure the integrity of the trust fund."
State of the Union Address
January 19, 1976
"I will continue to push, prod, and press the Congress
to make sure that your social security benefits now, as
well as in the future, will be responsibly funded and fully
protected.'
Remarks at Tampa, Florida
February 29, 1976
DEPARTMENT
FORD
LIBRARY
CATASTROPHIC HEALTH INSURANCE
"I am proposing catastrophic health insurance for every-
body covered by Medicare--and that includes both the elderly
and the disabled. Under this proposal, no one who is 65
years or older would have to pay more than $500 a year for
hospital or nursing home care nor more than $250 a year
for doctor's bills.
President Ford has stated that millions of older
persons live in fear of being stricken by an illness that
will call for expensive hospital care over a long period
of time.
"Most often they do not have the resources to pay
the bills
We have been talking about this problem for
many years. We have it within our power to act now so
that today's older persons will not be forced to live
under this kind of a shadow. 11
GERALD R. FORD
LISA
TAX REFORM
Q. One of the proposals now before the House Ways and
Means Committee, submitted by Rep. James A. Burke of
Massachusetts, would change the social security tax
law to lessen the payments now made by employers and
employees and would raise the income limits so that
wage earners with an income of $25,000 would pay a
social security tax on that full amount. Do you
support that tax reform?
A. As I spelled out in my State of the Union address,
it is vital that we maintain a sound, reliable Social
Security System. I have therefore proposed that the
full cost of living increase be paid to all Social
Security beneficiaries,
We must also recognize, as Rep. Burke has, that the
Social Security Trust Fund -- the foundation of the
system -- is running out of money. I have therefore
proposed that in order to preserve the integrity of
the trust fund and to protect future benefits, we
enact a modest increase in Social Security payments,
effective January 1, 1977. For employees, this will
mean an increase of less than a dollar a week in
additional payments.
Rep. Burke's proposal would result in a significant
portion of Social Security benefits being financed from
general revenues. I oppose this approach for two
reasons. First, Social Security was set up as a form
GERALD R. FORD
LIBRARY
2
of personal insurance; we ought to maintain it as
such, and not turn it into a general welfare program.
Secondly, we just don't have general revenues to put
into Social Security. As matters now stand, the
Federal Government during fiscal year 1976 will be
borrowing over $70 billion to pay its bills. It
makes no sense to me to keep living beyond our
means and expect the future to take care of itself.
Social Security was intended as a means to provide
for the future, and we ought to stick to that sound
principle.
oston Herald American
Written Interview
February 4, 1976
GERALD
A
FORD
LID,
climination of the GI educational benefits for those vet-
It was a voting record that called them as I saw them
crans who have served in wartime.
for the overall benefit of the United States, and Presi-
Let me make one alternative comment. The GI bill
dent I have carried out precisely. the same policy.
was passed during World War II for those 16 million
Q. Thank you.
Americans who served so when they got out they could
get an education. It expired after World War II. Korea
THE PRESIDENT'S PLANS IF ELECTED
came along, again combat, and it was reenacted.
Q. President Ford, my name is Paul Walton, and I
After the end of the Korean War-combat having
am on the California Exchange Program from San Diego.
ceased-it expired. When the Vietnam War came along,
I would like to know that if you were elected to the Presi-
it was reenacted. The Vietnam War has now been over
dency of the United States, what new changes would take
for a year or more, as far as WC are concerned.
place?
Now the question is whether in peacetime you should
THE PRESIDENT. Let's take foreign policy. We are at
continue giving educational benefits to those who serve
peace, as I said in my opening remarks. We have strength-
under an all-volunteer system?
ened our relations with the NATO nations in Western
Q. I think you should. How do you feel?
Europe, and they are getting better every day.
THE PRESIDENT. Let me raise a question. We want an
We have the best, the finest relations with Japan we
all-volunteer service, and we have got it. There is no more
have ever had. We are making excellent headway in
draft. I am all for it: But if you give educational benefits
pushing for a permanent and a fair and equitable peace in
to an all-volunteer force, and you want them to stay in
the Middle East.
so we have career personnel and, at the same time, you
We are keeping a dialog with words and not bullets
give them educational benefits SO that is an incentive for
with the Soviet Union, and we are making, improving
them to get out, it doesn't make much sense from the
relations with the People's Republic of China. In foreign
point of view of the Government.
policy we are going to keep moving ahead on the same
So, we are going to give every GI who entered the
policy of achieving peace, maintaining peace that we
service his GI benefits if it was it matter of law at that
have had.
time. But it raises a serious question, whether you should
In the domestic policy area, I think we are on the right
give it to some fellow who volunteers on his own initiative
course for us to continue to improve our economic situa-
and then provide an incentive for him to get out at the
tion. We are going to continue the downward trend in
end of 3 years SO he can go to school.
inflation. We have made a lot of progress from what it
Now, I think we can solve it, and this is the way it ought
was 18 months ago. It was over 12 percent-a-year. It is
to be solved. If a young man volunteers, he has a high
6 percent-a-year now, and it is going down.
hool education, we ought to give him educational op-
Unemployment is headed in the right direction, down,
gortunities in the service so that he can go to school, get
the trend of the Gross National Product is in the right di-
his college degree so the service will have him with a higher
rection. So we are going to keep a firm, steady hand to
education rather than having him get out to get an edu-
make sure that these trends continue.
cation. That is the better way to solve it.
That will take a lot of hard work, a little confrontation
Q. Thank you very much, Mr. President.
with my friends in the Congress. But I think we will come
out in good shape, and America will be a better country
THE PRESIDENT'S VOTING RECORD
in 1977 and the years thereafter.
Q. Mr. President, sir, my name is Bonzo, and I am an
Thank you all very much.
escapee from an old Ronald Reagan flick. I have been
NOTE: The President spoke at 7:05 p.m. in Lundholm Gymnasium
challenging him all over the country as the candidate
at the University of New Hampshire.
of big business, as the fat cat's candidate. The way you
talk about freedom for the giant corporations, I will be
forced to challenge you as well, sir. Why should you not
be called the big business candidate?
Older Americans
THE PRESHIENT. Why should I not be?
Q. Why should you not be called that, sir?
The President's Remarks pon Signing His Message to
THE PRESIDENT. Well, I think if you look at my voting
Congress. February 9, 1976
record for 25-plus years in the House of Representatives
where I voted over 4,000 times, if you will look at the
Today I am sending a message to the ress that
voting record, you will find that it could not be categorized
expresses my confidence and support of older Americans,
as a candidate of big labor, big business.
my very deep concern about the problems of the aging,
GERALD
R.
FORD
Volume 12-Number 7
LIBRARY
them. Society owes a very deep debt of gratitude to all
to limit Medicare reimbursement rates 11) 7 reent for
older persons who have worked hard and contributed
hospital services and 4 percent for physician services.
significantly to our Nation's progress.
These proposals are of particular importance in achieving
Older Americans continue to enrich our lives with their
my goal of helping all Americans live in dignity, security
vision, strength and experience. They have earned the
and good health.
right to live securely, comfortably and independently. The
I hope you will join me in efforts to secure agressional
proposals that I am sending to the Congress offer signifi-
passage of these important proposals. We must show our
cant improvements in the quality of life for all older
commitment to a cause that is often too long neglected-
Americans.
the dignity and well-being of America's older generations.
Wc all have a great stake in fighting inflation, but older
I will now sign the messages to the Gongress-one to
Americans living on fixed incomes are especially hard hit.
the House and one to the Scnate urging that they under-
I pledge to continue the fight against inflation.
take the enactment of this necessary legislation.
To provide special relief to the elderly, I am requesting
Thank you very much.
in my budget for fiscal year 1977 that the full cost of living
NOTE: The President spoke at 10:05 a.m. at a ceremony in the Oval
increase in social security benefits are paid during the
Office at the White House.
coming year.
The value of the social security system is beyond chal-
lenge. I am concerned, however, about the integrity of the
Security Trust Fund that enables people to count
on this source of retirement income. I am concerned be-
Older Americans
cause the system now pays out more in benefits than it
receives in tax payments.
The President's Message to the Congress.
To prevent a rapid decline in the Trust Fund over the
February I, 1976
next few years, I had to make a very difficult decision. I
am proposing a small payroll tax increase of three-tenths
To the Congress of the United States:
of one percent each--for employees as well as employ-
I ask the Congress to join with me in making improve-
ers-of covered wages. The alternative would have been
ments in programs serving the elderly.
to limit expected increases in retirement and disability
As President, 1 intend to do everything in my power
payments. This proposed tax increase will help to stabilize
to help our nation demonstrate by its deeds a deep con-
the Trust Fund so that current and future recipients will
cern for the dignity and worth of our older persons. By
be fully assured of receiving the benefits they are
so doing, our nation will continue to benefit from the
entitled to.
contributions that older persons can make to the strength-
I am also very concerned about the effect of cata-
ening of our nation.
strophic illnesses. I want to lighten the financial burden
The proposals being forwarded to Congress are directly
which now strikes after prolonged hospitalization-when
related to the health and security of older Americans.
the elderly and their families can least afford it. Therefore,
Their prompt enactment will demonstrate our concern
I am proposing catastrophic health insurance for the more
that lifetimes of sacrifice and hard work conclude in hope
than 24 million Americans and disabled Americans pro-
rather than despair.
tected by Medicare.
The single greatest threat to the quality of life of older
No one who is covered by Medicare would have to pay
Americans is inflation. Our first priority continues to
more than $500 a year for covered hospital or nursing
be the fight against inflation. We have been able to re-
home care. No one who is covered by Medicare would
duce by nearly half the double digit inflation erienced
have to pay more than $250 for one year's doctor bills.
in 1974. But the retired, living on fixed incomes, have been
Beneficiaries and their physicians now have little incen-
particularly hard hit and the progress we have made in
tive to limit the duration of hospitalization for less scrious
reducing inflation has not benefited them enough. We
conditions.
will continue our efforts to reduce federal spending, bal-
To encourage economic use of covered health services,
ance the budget, and reduce taxes. The particular vul-
I am also proposing changes in cost-sharing arrange-
nerability of the aged to the burdens of inflation, how-
ments. As under the current system, a beneficiary who is
ever, requires that specific improvements be made in two
in the hospital will pay $104 a day for the first day of hos-
major Federal programs, Social Security and Medicare.
pital services. In addition, he or she will pay 10 percent
We must begin by insuring that the Social Security
of additional charges up to an annual maximum of $500.
system is beyond challenge. Maintaining the integrity of
For covered physician services, my proposal would in-
the system is a vital obligation each generation has to
crease the annual deductible from $60 to $77 and would
those who have worked hard and contributed in it all
continue the current 20 percent cost sharing.
their lives. I strongly reaffirm my commitment FORD stable
Volume 12-Number 7
1976
169
and financially sound Social Security system. My 1977
First, I propose extending Medicare benefits by providing
budget and legislative program include several elements
coverage for unlimited days of hospital and skilled nursing
which I believe are essential to protect the solvency and
facility care for beneficiaries. Second, I propose to limit
integrity of the system.
the out-of-pocket expenses of beneficiaries, for covered
First, to help protect our retired and disabled citizens
services, to $500 per year for hospital and skilled nursing
against the hardships of inflation, my budget request to
services and $250 per year for physician and other non-
the Congress includes a full cost of living increase in
institutional medical services.
Social Security benefits, to be effective with checks rc-
This will mean that each year over a billion dollars of
ceived in July 1976. This will help maintain the pur-
benefit payments will be targeted for handling the finan-
chasing power of 32 million Americans.
cial burden of prolonged illness. Millions of older persons
Second, to insure the financial integrity of the Social
live in fear of being stricken by an illness that will call for
Security trust funds, I am proposing legislation to increase
expensive hospital and medical care over a long period
payroll taxes by three-tenths of one percent each for cm-
of time. Most often they do not have the resources to pay
ployees and employers. This increase will cost no worker
the bills. The members of their families share their fears
more than $1 a week, and most will pay less. These addi-
because they also do not have the resources to pay such
tional revenues are needed to stabilize the trust funds SO
large bills. We have been talking about this problem for
that current income will be certain to either equal or
many years. We have it within our power to act now SO
exceed current outgo.
that today's older persons will not be forced to live under
Third, to avoid serious future financing problems I
this kind of a shadow. I urge the Congress to act promptly.
will submit later this year a change in the Social Security
Added steps are needed to slow down the inflation of
laws to correct a serious flaw in the current system. The
health costs and to help in the financing of this cata-
current formula which determines benefits for workers
strophic protection. Therefore, 1 am recommending that
who retire in the future does not properly reflect wage
the Congress limit increases in medicare payment
and price fluctuations. This is an inadvertent error which
rates in 1977 and 1978 to 7% a day for hospitals and
could lead to unnecessarily inflated benefits.
4% for physician services.
The change I am proposing will not affect cost of living
Additional cost-sharing provisions are also needed to
increases in benefits after retirement, and will in no way
encourage economical use of the hospital and medical
alter the benefit levels of current recipients. On the other
services included under Medicare. Therefore, I am rec-
hand, it will protect future generations against unneces-
ommending that patients pay 10% of hospital and nurs-
sary costs and excessive tax increases.
ing home charges after the first day and that the existing
I believe that the prompt enactment of all of these
deductible for medical services be increased from $60 to
proposals is necessary to maintain a sound Social Security
$77 annually.
system and to preserve its financial integrity.
The savings from placing a limit on increases in medi-
Income security is not our only concern. We need to
care payment rates and some of the revenue from in-
ocus also on the special health care needs of our elder
creased cost sharing will be used to finance the cata-
citizens. Medicare and other Federal health programs
strophic illness program.
have been successful in improving access to quality medi-
I feel that, on balance, these proposals will provide our
cal care for the aged. Before the inception of Medicare
elder citizens with protection against catastrophic illness
and Medicaid in 1966, per capita health expenditures
costs, promote efficient utilization of services, and moder-
for our aged were $445 per year. Just eight years later,
atc the increases in health care costs.
in FY 1974, per capita health expenditures for the elderly
The legislative proposals which I have described are
had increased to $1218, an increase of 171 percent. But
only part of the over-all effort we are making on behalf
despite the dramatic increase in medical services made
of older Americans. Current conditions call for continued
possible by public programs, some problems remain.
and intensified action on a broad front.
There are weaknesses in the Medicare program which
We have made progress in recent years. We have re-
must be corrected. Three particular aspects of the cur-
sponded, for example, to recommendations made at the
rent program concern me: 1) its failure to provide our
1971 White House Conference on Aging. A Supplemental
elderly with protection against catastrophic illness costs,
Security Income program was enacted. Social Security
2) the serious effects that health care cost inflation is
benefits have been increased in accord with increases in
having on the Medicare program, and 3) lack of incen-
the cost of living. The Social Security retirement test was
tives to encourage efficient and economical use of hospi-
liberalized. Many inequities in payments to women have
tal and medical services. My proposal addresses each of
been climinated. The 35 million workers who have earned
these problems.
rights in private pension plans now have increased
In my State of the Union Message I proposed protec-
protection.
tion against catastrophic health expenditures for Medi-
In addition we have continued to strengthen the Older
care beneficiaries. This will be accomplished in two ways.
Americans Act. I have supported GERALLO concept FORD of the Older
Volume 12-Number 7
LISAARY
its progress in pan by its ability to rec. gnize,
vember signed the most recent amendments into law.
respect and renew the contributions of carlier generations.
A key component of the Older Americans Act is the
I believe that the Social Security and Medicare improve-
national network on aging which provides a solid founda-
ments I am proposing, when combined with the action
tion on which action can be based. I am pleased that we
programs under the Older Americans Act, will insure a
have been able to assist in setting up this network of 56
measure of progress for the elderly and thus provide real
State and 489 Area Agencies on Aging, and 700 local
hope for us all.
nutrition agencies. These local nutrition agencies for ex-
GERALD R. FORD
ample provide 300,000 hot meals a day five days a week.
The White House,
The network provides a structure which can be used to
February 9, 1976.
attack other important problems. A concern of mine is
that the voice of the elderly, as consumers, be heard in the
governmental decision-making process. The network on
aging offers opportunities for this through membership
Department of Health,
on advisory councils related to State and Area Agencies
on Aging, Nutrition Project Agencies and by participation
Education, and Welfare
in public hearings on the annual State and Arca Plans.
Such involvement can and will have a significant impact
Announcement of Intention To Nominate
on determining what services for the aging are to be given
William H. Taft IV To Be General Counsel.
the highest priorities at the local level.
February 9, 1976
The principal goal of this National Network on Aging
The President today announced his intention to nomi-
is to bring into being coordinated comprehensive systems
nate William H. Taft IV, of Alexandria, Va., to be Gen-
for the provision of service to the elderly at the community
eral Counsel of the Department of Health, Education,
level. I join in the call for hard and creative work at all
and Welfare. Hc will succeed John Rhinelander, who was
levels-Federal, State and Area in order to achieve this
appointed Under Secretary of the Department of Housing
objective. I am confident that progress can be made.
and Urban Development on September 11, 1975. Mr.
Toward this end, the Administration on Aging and a
Taft has been Assistant to the Secretary of HEW since
number of Federal Departments and agencies have signed
March 1973.
agreements which will help to make available to older
Mr. Taft was born on September 13, 1945, in Wash-
persons a fair share of the Federal funds available in
ington, D.C. He attended Yale University and received his
such areas as housing, transportation, social services, law
B.A. degree in 1966. Hc received his J.D. from Harvard
enforcement, adult education and manpower-resources
Law School in 1969.
which can play a major role in enabling older persons to
In January 1970, Mr. Taft became an attorney-advisor
continue to live in their own homes.
in the Office of the Chairman of the Federal Trade Com-
Despite these efforts, however, five percent of our older
mission. He was appointed Special Assistant in the
men and women require the assistance provided by skilled
Deputy Director of the Office of Management and Budget
nursing homes and other long term care facilities. To assist
in August 1970. From August 1972 to March 1973, he
these citizens, an ombudsman process, related solely to the
was Executive Assistant to the Director of OMB.
persons in these facilities, is being put into operation by
Mr. Taft is married to the former Julia Vadala.
the National Network on Aging. We believe that this pro-
gram will help to resolve individual complaints, facilitate
important citizen involvement in the vigorous enforcement
of Federal, State and local laws designed to improve health
and safety standards, and to improve the quality of care
Assistant Press Secretary
in these facilities.
to the President
Today's older persons have made invaluable contribu-
tions to the strengthening of our nation. They have pro-
Announcement of Appointment of Larry Speakes.
vided the nation with a vision and strength that has
February 9, 1976
resulted in unprecedented advancements in all of the arcas
of our life. Our national moral strength is due in no small
The President today announced the appointment of
part to the significance of their contributions. We must
Larry Speakes, of Merigold, Miss., as Assistant Press Sec-
continue and strengthen both our commitment to doing
retary to the President. He became a member of the staff
everything WC can to respond to the needs of the elderly
of the Office of the Press Secretary in August 1974.
and our determination to draw on their strengths.
Born in Cleveland, Miss., on September 13, 1939, Mr.
Our entire history has been marked by a tradition of
Speakes attended the University of Mississippi where hc
growth and progress. Each succeeding generation can
majored in journalism.
Volume 12-Number 7
R.
GERALD
PEOPLE
3/5/76
3/5/76
Older American
* Signed into law Title XX of the Social Security
Act which provides 2.5 billion dollars to the states
for social services.
Under Title XX older persons will receive increased
services, planned and implemented by state and local
governments -- needs and services determined not in
Washington but at the local level, with the partici-
pation of the older Americans who will receive the
services. And lastly, under President Ford's
new Title XX proposal, states would no longer be
required to give the federal government money in order
to obtain federal monies in return.
President Ford has supported the concept of the Older
Americans Act since its inception in 1965. This past
November the President strengthened the Act when he signed
into law amendments creating new services and goals.
Under President Ford's Administration -- $272 million --
almost seven times the amount available three years earlier
went to this program. Through the Administration on Aging
a00
created by this Act, a national network on aging composed
of state, area and nutrition agencies has been established
As an example of what the Act does, nutrition agencies
serve older persons over 300,000 hot meals a day, five
days a week at 5,000 locations. This network helps older.
people to:
Know what resources are available
Secure services enabling them to live in their own
homes.
Meet their needs for transportation
Provide for the weatherization of their homes.
Obtain legal services
Continue to be involved by serving in full-time,
part-time and volunteer positions serving the
community.
Cope with housing problems
Have a meaningful voice in setting priorities
for meeting their needs at the ločal level.
GE,
IBRARY
The Presic
Report is
The President Ford Committee, Howard H. Callaway, Chairman, Robert Mosbacher, National Finance Chairman, Robert C. Moot, Treasurer A
Report is filed with the Federal Election Commission and is available for purchase from the Federal Election Commission, Washington,
SUPPLEMENTAL RETIREMENT PROGRAMS
Upon being asked his opinion on legislation permitting
all citizens to provide for a portion of their retirement
through the mechanism of the individual retirement accounts,
the President responded:
"I was a supporter of what we call the Keogh
plan, and I am sure you are familiar with that.
That has been increased from $1500 to $2500, as
I recollect. There is the IRA program. I have
recommended something along this line so that
individuals can invest in American corporations and
get a tax deferral.
In other words, I think it is $1500 a year. If
they invest in American corporate securities, they
can then get a deferral of their tax and pay the
tax when they retire at the retirement age. I
happen to believe very strongly in supplemental
retirement programs, whether it is Keogh or any
one of the others. So, anything that can be jus-
tified within reason, the answer is categorically
yes. "
President Gerald R. Ford
Q & A Session at Public Forum
Champaign, Illinois
March 6, 1976
GERALD R.
LIBRARY FORD
OLDER AMERICANS
SPECIAL MESSAGE
QUESTION: Mr. President, I am retired from the
U.S. Air Force, a Pearl Harbor survivor. What I would like
to know, sir, is do you have any program with relation to
pay for the retired service people of the United States?
THE PRESIDENT: Well, I recognize the problem that
all people who are retired have with inflationary difficulties
that we have had in the country for the last 18 -- well, the
last three years, really. We are making headway on that,
but with the escalator clauses that we have in military
retirement, Social Security, railroad retirement and so forth,
I think we can honestly say that those who are retired are
considered to get an adequate amount for the benefit of their
future and I intend to see that those escalator clauses are
maintained.
I believe that as we attack effectively inflation
that those who are retired, whether it is military retirement
or Social Security, railroad retirement or Government retirement,
can feel a security and a sufficiency in their older years, and
I will fight to maintain those.
President Ford
March 13, 1976
West Wilkes High School Gym.
Wilkesboro, North Carolina
LIBRARY
of
GERALD
SOCIAL SECURITY
SOCIAL PROGRAMS
QUESTION: My question relates to Social Security.
In 1975, the maximum amount of Social Security paid on
behalf of any one person was a maximum of $348. Now in 1976
someone earning $15, 300 pays a combined employee-employer
total of $1790, so in just over ten years we had a 414 percent
increase in the cost to middle income American taxpayers.
And there is no end in sight, apparently, because a deficit
occurred this year for the first time so more and more money
is going to have to be raised, so your solution is to increase
regressiveness of that tax by increasing another three-tenths
of one percent and further burdening the low and middle
income taxpayers in this country.
But let me answer the other question, and I am
glad you brought it up. It is a very serious problem we
are facing. The Social Security Trust Fund this year will
have a deficit between income and outgo of $3 billion. Next
year it will have a deficit of: $3.5 to $4 billion, the next
year it will be closer to $5 billion. At the present time
we have a Trust Fund of about $40 billion, so if we do
nothing, you are bound to have, in a relatively short period
of time, some time early in the 1980's, a deficit. There
won't be any Trust Fund.
So you really have about three different answers.
You can either do as I recommended, which I think is
the honest and straightforward approach, to say that we
have got to increase the taxes three-tenths of one percent
on or one-sixth of one percent on the employer and the
employee.
GERALD
so
President Gerald Ford
Mary E. Sawyer Auditorium
LaCrosse, Wisconsin
March 27, 1976
94th Congress, 2d Session
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House Document No. 94-363
IMPROVING PROGRAMS FOR THE ELDERLY
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
PROPOSALS FOR IMPROVEMENTS IN PROGRAMS SERVING
THE ELDERLY
FEBRUARY 9, 1976.-Message referred to the Committee on Ways and
Means and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
57-011
WASHINGTON : 1976
FORD R. GERALD LIBRARY
To the Congress of the United States:
I ask the Congress to join with me in making improvements in pro-
grams serving the elderly.
As President, I intend to do everything in my power to help our
nation demonstrate by its deeds a deep concern for the dignity and
worth of our older persons. By SO doing, our nation will continue to
benefit from the contributions that older persons can make to the
strengthening of our nation.
The proposals being forwarded to Congress are directly related to
the health and security of older Americans. Their prompt enactment
will demonstrate our concern that lifetimes of sacrifice and hard work
conclude in hope rather than despair.
The single greatest threat to the quality of life of older Americans is
inflation. Our first priority continues to be the fight against inflation.
We have been able to reduce by nearly half the double digit inflation
experienced in 1974. But the retired, living on fixed incomes, have been
particularly hard hit and the progress we have made in reducing infla-
tion has not benefited them enough. We will continue our efforts to re-
duce federal spending, balance the budget, and reduce taxes. The par-
ticular vulnerability of the aged to the burdens of inflation, however,
requires that specific improvements be made in two major Federal
programs, Social Security and Medicare.
We must begin by insuring that the Social Security system is beyond
challenge. Maintaining the integrity of the system is a vital obligation
each generation has to those who have worked hard and contributed to
it all their lives. I strongly reaffirm my commitment to a stable and
financially sound Social Security system. My 1977 budget and legisla-
tive program include several elements which I believe are essential to
protect the solvency and integrity of the system.
First, to help protect our retired and disabled citizens against the
hardships of inflation, my budget request to the Congress includes a
full cost of living increase in Social Security benefits. to be effective
with checks received in July 1976. This will help maintain the pur-
chasing power of 32 million Americans.
Second, to insure the financial integrity of the Social Security trust
funds, I am proposing legislation to increase payroll taxes by three-
tenths of one percent each for employees and employers. This increase
will cost no worker more than $1 a week, and most will pay less. These
additional revenues are needed to stabilize the trust funds so that cur-
rent income will be certain to either equal or exceed current outgo.
Third, to avoid serious future financing problems I will submit later
this year a change in the Social Security laws to correct a serious flaw
in the current system. The current formula which determines benefits
for workers who retire in the future does not properly reflect wage and
price fluctuations. This is an inadvertent error which could lead to
unnecessarily inflated benefits.
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H.D. 363
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The change I am proposing will not affect cost of living increases
The savings from placing a limit on increases in medicare payment
in benefits after retirement, and will in no way alter the benefit levels
rates and some of the revenue from increased cost sharing will be used
of current recipients. On the other hand, it will protect future gen-
to finance the catastrophic illness program.
erations against unnecessary costs and excessive tax increases.
I feel that, on balance, these proposals will provide our elder citi-
I believe that the prompt enactment of all of these proposals is
zens with protection against catastrophic illness costs, promote efficient
necessary to maintain a sound Social Security system and to preserve
utilization of services, and moderate the increases in health care costs.
its financial integrity.
The legislative proposals which I have described are only part of
Income security is not our only concern. We need to focus also on
the over-all effort we are making on behalf of older Americans. Cur-
the special health care needs of our elder citizens. Medicare and other
rent conditions call for continued and intensified action on a broad
Federal health programs have been successful in improving access
front.
to quality medical care for the aged. Before the inception of Medicare
We have made progress in recent years. We have responded, for
and Medicaid in 1966, per capita health expenditures for our aged
example, to recommendations made at the 1971 White House Confer-
were $445 per year. Just eight years later, in FY 1974, per capita health
ence on Aging. A Supplemental Security Income program was en-
expenditures for the elderly had increased to $1218, an increase of 174
acted. Social Security benefits have been increased in accord with
percent. But despite the dramatic increase in medical services made
increases in the cost of living. The Social Security retirement test was
possible by public programs, some problems remain.
liberalized. Many inequities in payments to women have been elimi-
There are weaknesses in the Medicare program which must be cor-
nated. The 35 million workers who have earned rights in private pen-
rected. Three particular aspects of the current program concern me 1)
sion plans now have increased protection.
its failure to provide our elderly with protection against catastrophic
In addition we have continued to strengthen the Older Americans
illness costs, 2) the serious effects that health care cost inflation is
Act. I have supported the concept of the Older Americans Act since
having on the Medicare program, and 3) lack of incentives to en-
its inception in 1965, and last November signed the most recent
courage efficient and economical use of hospital and medical services.
amendments into law.
My proposal addresses each of these problems.
A key component of the Older Americans Act is the national net-
In my State of the Union Message I proposed protection against
work on aging which provides a solid foundation on which action can
catastrophic health expenditures for Medicare beneficiaries. This will
be based. I am pleased that we have been able to assist in setting up
be accomplished in two ways. First, I propose extending Medicare
this network of 56 State and 489 Area Agencies on Aging, and 700
benefits by providing coverage for unlimited days of hospital and
local nutrition agencies. These local nutrition agencies for example
skilled nursing facility care for beneficiaries. Second, I propose to
provide 300,000 hot meals a day five days a week.
limit the out-of-pocket expenses of beneficiaries, for covered services,
The network provides a structure which can be used to attack other
to $500 per year for hospital and skilled nursing services and $250
important problems. A concern of mine is that the voice of the elderly,
per year for physician and other non-institutional medical services.
as consumers, be heard in the governmental decision-making process.
This will mean that each year over a billion dollars of benefit pay-
The network on aging offers opportunities for this through member-
ments will be targeted for handling the financial burden of prolonged
ship on advisory councils related to State and Area Agencies on Aging,
illness. Millions of older persons live in fear of being stricken by an
Nutrition Project Agencies and by participation in public hearings on
illness that will call for expensive hospital and medical care over a
the annual State and Area Plans. Such involvement can and will have
long period of time. Most often they do not have the resources to pay
a significant impact on determining what services for the aging are to
the bills. The members of their families share their fears because they
be given the highest priorities at the local level.
also do not have the resources to pay such large bills. We have been
The principle goal of this National Network on Aging is to bring
talking about this problem for many years. We have it within our
into being coordinated comprehensive systems for the provision of
power to act now SO that today's older persons will not be forced to
service to the elderly at the community level. I join in the call for hard
live under this kind of a shadow. I urge the Congress to act promptly.
and creative work at all levels-Federal, State and Area in order to
Added steps are needed to slow down the inflation of health costs
achieve this objective. I am confident that progress can be made.
and to help in the financing of this catastrophic protection. There-
Toward this end, the Administration on Aging and a number of
fore, I am recommending that the Congress limit increases in medicare
Federal Departments and agencies have signed agreements which will
payment rates in 1977 and 1978 to 7% a day for hospitals and 4% for
help to make available to older persons a fair share of the Federal
physician services.
funds available in such areas as housing, transportation, social serv-
Additional cost-sharing provisions are also needed to encourage
ices, law enforcement. adult education and manpower--resources
economical use of the hospital and medical services included under
which can play a major role in enabling older persons to continue to
live in their own homes.
Medicare. Therefore, I am recommending that patients pay 10% of
hospital and nursing home charges after the first day and that the
Despite these efforts. however, five percent of our older men and
existing deductible for medical services be increased from $60 to $77
women require the assistance provided by skilled nursing homes and
annually.
other long term care facilities. To assist these citizens, an ombudsman
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H.D. 363
H.D. 363
4
process, related solely to the persons in these facilities, is being put into
operation by the National Network on Aging. We believe that this pro-
gram will help to resolve individual complaints, facilitate important
citizen involvement in the vigorous enforcement of Federal, State and
local laws designed to improve health and safety standards, and to
improve the quality of care in these facilities.
Today's older persons have made invaluable contributions to the
strengthening of our nation. They have provided the nation with a
vision and strength that has resulted in unprecedented advancements
in all of the areas of our life. Our national moral strength is due in no
small part to the significance of their contributions. We must continue
and strengthen both our commitment to doing everything we can to
respond to the needs of the elderly and our determination to draw on
their strengths.
Our entire history has been marked by a tradition of growth and
progress. Each succeeding generation can measure its progress in part
by its ability to recognize, respect and renew the contributions of ear-
lier generations. I believe that the Social Security and Medicare im-
provements I am proposing, when combined with the action programs
under the Older Americans Act, will insure a measure of progress for
the elderly and thus provide real hope for us all.
GERALD R. FORD.
THE WHITE HOUSE, February 9, 1976.
H.D. 363
94th Congress, 2d Session
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House Document No. 94-383
Feb 26, 1976
FINANCIAL ASSISTANCE FOR HEALTH CARE
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
URGING ENACTMENT OF LEGISLATION TO REFORM
FEDERAL HEALTH CARE PROGRAMS
FEBRUARY 26, 1976.-Message referred to the Committee on Interstate
and Foreign Commerce and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
57-011
WASHINGTON : 1976
SEHALD R. FORD
LIBRARY
00
To the Congress of the United States
The health of our people is one of our Nation's most vital resources.
Significant progress has been made in improving the health of the
Nation's people during the last 25 years, as can be seen in the reductions
in the infant mortality rate, increases in life expectancy, and the con-
quering of some communicable diseases. This progress has come under
a largely private health care system with the support of public funds.
In the past 10 year period (1965-1975) Federal spending for health
has increased from $5 billion to $37 billion. With greater Federal
funding has come a multitude of Federal programs, regulations and
restrictions-all motivated by the best of intentions but each adding
to the confusion and overlap and inequity that now characterizes our
efforts at the national level.
Today I am proposing to the Congress legislation that addresses
these problems. I am asking Congress to enact the Financial Assist-
ance for Health Care Act which will consolidate Medicaid and 15
categorical Federal health programs into a $10 billion block grant
to the States. I am proposing that future Federal funding for this
new program be increased annually in increments of $500 million plus
the amounts needed after 1980 to ensure that no State will in the
future receive less under this proposal than it received in fiscal year
1976.
The Financial Assistance for Health Care proposal is being sub-
mitted after extensive consultation with organizations representing
the publicly elected officials who will be responsible for administering
the program. I believe this proposal represents a major step toward
overcoming some of the most serious defects in our present system
of Federal financing of health care.
My proposal is designed to achieve a more equitable distribution
of Federal health dollars among States and to increase State control
over health spending. My proposal also recognizes the appropriate
Federal role in providing financial assistance to State and local gov-
ernments to improve the quality and distribution of health services.
The enactment of this legislation will achieve a more equitable dis-
tribution of Federal health dollars by providing funds according to a
formula giving primary weight to a State's low-income population.
The formula also takes into account the relative "tax effort" made by
a State and the per capita income of that State.
Let me emphasize that every State will receive more Federal funds
in fiscal years 1977, 1978 and 1979 under the block grant than it re-
ceived in fiscal year 1976. My proposal also allows for a gradual
phase-in of the distribution formula in future years to ensure a sys-
tematic, orderly transition that will permit States to adjust to the
new program.
To assure accountability and responsiveness to the public, my pro-
posal requires each State to develop an annual health care plan as a
condition to receiving Federal funds. This plan will be developed
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H.D. 383
2
3
through a Statewide public review and comment process which will as-
needed now. The Medicare Improvements of 1976 that I recommended
sure participation by all concerned parties. Thus, increased State re-
to the Congress on February 11 also represents a balanced response to
sponsibility will be coupled with expanded public participation, and
needed program reforms. This proposal is designed to improve cata-
accountability in the development of State health policies.
strophic health cost protection for our aged and disabled, restrain cost
This proposed consolidation of health programs is essential to con-
increases in the Medicare program and provide training for the hos-
tinue our national progress in the field of health. It is designed to per-
pital insurance trust fund.
mit States greater flexibility in providing for delivery of health care
I request that the Congress give both these measures the earliest
services to those with low income. It eliminates the requirements for
possible consideration.
State matching. And it recognizes the need for a cooperative relation-
GERALD R. FORD.
ship among governments at all levels. My proposal would reduce Fed-
THE WHITE HOUSE, February 25, 1976.
eral red tape, increase local control over health spending, and expand
public participation in health planning.
While I am proposing to increase State control over health spending,
we will continue to concentrate our efforts in areas of appropriate Fed-
eral responsibility. For example, my budget proposals for 1977 include
the following:
In food and drug safety, I have asked for $226 million in 1977,
an increase of $17 million, to enable further progress in priority
areas;
In the area of drug abuse prevention, I propose almost $500 mil-
lion for prevention and treatment to expand national drug abuse
treatment capacity to meet the current need;
My budget requests more than $3 billion for health research, in-
cluding continued support of major national efforts in cancer and
heart disease research and support for new scientific opportuni-
ties in the fields of environmental health, aging, and immunology
In our effort to improve the training and utilization of doctors
and other health professionals, I have requested new legislation
and funding of $319 milloin, designed to concentrate on the prob-
lems of geographic and specialty maldistribution of health
professionals;
To assist local communities to attract physicians, dentists and
other health professionals to underserved areas, I am proposing to
expand the National Health Service Corps demonstration pro-
gram 38 percent from $18 million to $25 million.
To assist the development of a strong health maintenance al-
ternative, I have directed HEW to move rapidly in administering
the dual option provisions of the HMO Act. And, to complete the
5-year effort to demonstrate and test the health maintenance or-
ganization concept, I have requested an additional year's authori-
zation for new commitments. As of last June, there were 10 health
maintenance organizations certified through the dual option
provisions;
To provide improved health services to American Indians and
Alaska Natives, I am asking for $355 million. Spending by the
Indian Health Service alone in 1977 will result in over $685 per
beneficiary, or over $2,740 per Indian family of four;
In the area of veterans' health care, I have requested $4.5 billion
to assure continued quality care by providing for increases in
medical staff and research related to VA health care delivery.
GEHALD
H.
FORD
A realistic assessment of the present health care programs and the
responsibilities of Federal, State, and local governments fully demon-
strates that the reforms I am proposing in Federal health care are
LIBRARY
H.D. 383
H.D. 383