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    "title": "Older Americans Issues - GRF Statements - General",
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        "Speeches, addresses, etc.",
        "Old age"
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    "ocrText": "The original documents are located in Box F54, folder \"Older Americans Issues - GRF\nStatements - General\" of the President Ford Committee Campaign Records at the Gerald\nR. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the\nUnited States of America her copyrights in all of her husband's unpublished writings in National\nArchives collections. Works prepared by U.S. Government employees as part of their official\nduties are in the public domain. The copyrights to materials written by other individuals or\norganizations are presumed to remain with them. If you think any of the information displayed\nin the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential\nLibrary.\nOLDER AMERICANS\n\"Older Americans continue to enrich our lives with\ntheir vision, strength and experience. They have earned\nthe right to live securely, comfortably, and independently.\nThe proposals that I am sending to the Congress offer sig-\nnificant improvements in the quality of life for all older\nAmericans.\n11\nRemarks upon signing Older\nAmericans Message to Congress\nFebruary 9, 1976\n\"As President, I intend to do everything in my power\nto help our nation demonstrate it deep concern for the\ndignity and well-being of our older generation. 11\nRemarks to a group of Senior\nCitizens\nSt. Petersburg, Florida\nFebruary 14, 1976\nSOCIAL SECURITY TRUST FUND\n\"I am concerned about the integrity of our Social\nSecurity Trust Fund that enables people--those retired\nand those still working who will retire to count on this\nsource of retirement income. Younger workers watch their\ndeductions rise and wonder if they will be adequately\nprotected in the future. We must meet this challenge head\non. Simple arithmetic warns all of us that the Social\nSecurity Trust Fund is headed for trouble. Unless we\nact soon to make sure the fund takes in as much as it\npays out, there will be no security for old or young.\nI must, therefore, recommend a 3/10 of one per cent\nincrease in both employer and employee social security\ntaxes effective January 1, 1977. This will cost each\ncovered employee less than one extra dollar a week and\nwill insure the integrity of the trust fund.\"\nState of the Union Address\nJanuary 19, 1976\n\"I will continue to push, prod, and press the Congress\nto make sure that your social security benefits now, as\nwell as in the future, will be responsibly funded and fully\nprotected.'\nRemarks at Tampa, Florida\nFebruary 29, 1976\nDEPARTMENT\nFORD\nLIBRARY\nCATASTROPHIC HEALTH INSURANCE\n\"I am proposing catastrophic health insurance for every-\nbody covered by Medicare--and that includes both the elderly\nand the disabled. Under this proposal, no one who is 65\nyears or older would have to pay more than $500 a year for\nhospital or nursing home care nor more than $250 a year\nfor doctor's bills.\nPresident Ford has stated that millions of older\npersons live in fear of being stricken by an illness that\nwill call for expensive hospital care over a long period\nof time.\n\"Most often they do not have the resources to pay\nthe bills\nWe have been talking about this problem for\nmany years. We have it within our power to act now so\nthat today's older persons will not be forced to live\nunder this kind of a shadow. 11\nGERALD R. FORD\nLISA\nTAX REFORM\nQ. One of the proposals now before the House Ways and\nMeans Committee, submitted by Rep. James A. Burke of\nMassachusetts, would change the social security tax\nlaw to lessen the payments now made by employers and\nemployees and would raise the income limits so that\nwage earners with an income of $25,000 would pay a\nsocial security tax on that full amount. Do you\nsupport that tax reform?\nA. As I spelled out in my State of the Union address,\nit is vital that we maintain a sound, reliable Social\nSecurity System. I have therefore proposed that the\nfull cost of living increase be paid to all Social\nSecurity beneficiaries,\nWe must also recognize, as Rep. Burke has, that the\nSocial Security Trust Fund -- the foundation of the\nsystem -- is running out of money. I have therefore\nproposed that in order to preserve the integrity of\nthe trust fund and to protect future benefits, we\nenact a modest increase in Social Security payments,\neffective January 1, 1977. For employees, this will\nmean an increase of less than a dollar a week in\nadditional payments.\nRep. Burke's proposal would result in a significant\nportion of Social Security benefits being financed from\ngeneral revenues. I oppose this approach for two\nreasons. First, Social Security was set up as a form\nGERALD R. FORD\nLIBRARY\n2\nof personal insurance; we ought to maintain it as\nsuch, and not turn it into a general welfare program.\nSecondly, we just don't have general revenues to put\ninto Social Security. As matters now stand, the\nFederal Government during fiscal year 1976 will be\nborrowing over $70 billion to pay its bills. It\nmakes no sense to me to keep living beyond our\nmeans and expect the future to take care of itself.\nSocial Security was intended as a means to provide\nfor the future, and we ought to stick to that sound\nprinciple.\noston Herald American\nWritten Interview\nFebruary 4, 1976\nGERALD\nA\nFORD\nLID,\nclimination of the GI educational benefits for those vet-\nIt was a voting record that called them as I saw them\ncrans who have served in wartime.\nfor the overall benefit of the United States, and Presi-\nLet me make one alternative comment. The GI bill\ndent I have carried out precisely. the same policy.\nwas passed during World War II for those 16 million\nQ. Thank you.\nAmericans who served so when they got out they could\nget an education. It expired after World War II. Korea\nTHE PRESIDENT'S PLANS IF ELECTED\ncame along, again combat, and it was reenacted.\nQ. President Ford, my name is Paul Walton, and I\nAfter the end of the Korean War-combat having\nam on the California Exchange Program from San Diego.\nceased-it expired. When the Vietnam War came along,\nI would like to know that if you were elected to the Presi-\nit was reenacted. The Vietnam War has now been over\ndency of the United States, what new changes would take\nfor a year or more, as far as WC are concerned.\nplace?\nNow the question is whether in peacetime you should\nTHE PRESIDENT. Let's take foreign policy. We are at\ncontinue giving educational benefits to those who serve\npeace, as I said in my opening remarks. We have strength-\nunder an all-volunteer system?\nened our relations with the NATO nations in Western\nQ. I think you should. How do you feel?\nEurope, and they are getting better every day.\nTHE PRESIDENT. Let me raise a question. We want an\nWe have the best, the finest relations with Japan we\nall-volunteer service, and we have got it. There is no more\nhave ever had. We are making excellent headway in\ndraft. I am all for it: But if you give educational benefits\npushing for a permanent and a fair and equitable peace in\nto an all-volunteer force, and you want them to stay in\nthe Middle East.\nso we have career personnel and, at the same time, you\nWe are keeping a dialog with words and not bullets\ngive them educational benefits SO that is an incentive for\nwith the Soviet Union, and we are making, improving\nthem to get out, it doesn't make much sense from the\nrelations with the People's Republic of China. In foreign\npoint of view of the Government.\npolicy we are going to keep moving ahead on the same\nSo, we are going to give every GI who entered the\npolicy of achieving peace, maintaining peace that we\nservice his GI benefits if it was it matter of law at that\nhave had.\ntime. But it raises a serious question, whether you should\nIn the domestic policy area, I think we are on the right\ngive it to some fellow who volunteers on his own initiative\ncourse for us to continue to improve our economic situa-\nand then provide an incentive for him to get out at the\ntion. We are going to continue the downward trend in\nend of 3 years SO he can go to school.\ninflation. We have made a lot of progress from what it\nNow, I think we can solve it, and this is the way it ought\nwas 18 months ago. It was over 12 percent-a-year. It is\nto be solved. If a young man volunteers, he has a high\n6 percent-a-year now, and it is going down.\nhool education, we ought to give him educational op-\nUnemployment is headed in the right direction, down,\ngortunities in the service so that he can go to school, get\nthe trend of the Gross National Product is in the right di-\nhis college degree so the service will have him with a higher\nrection. So we are going to keep a firm, steady hand to\neducation rather than having him get out to get an edu-\nmake sure that these trends continue.\ncation. That is the better way to solve it.\nThat will take a lot of hard work, a little confrontation\nQ. Thank you very much, Mr. President.\nwith my friends in the Congress. But I think we will come\nout in good shape, and America will be a better country\nTHE PRESIDENT'S VOTING RECORD\nin 1977 and the years thereafter.\nQ. Mr. President, sir, my name is Bonzo, and I am an\nThank you all very much.\nescapee from an old Ronald Reagan flick. I have been\nNOTE: The President spoke at 7:05 p.m. in Lundholm Gymnasium\nchallenging him all over the country as the candidate\nat the University of New Hampshire.\nof big business, as the fat cat's candidate. The way you\ntalk about freedom for the giant corporations, I will be\nforced to challenge you as well, sir. Why should you not\nbe called the big business candidate?\nOlder Americans\nTHE PRESHIENT. Why should I not be?\nQ. Why should you not be called that, sir?\nThe President's Remarks pon Signing His Message to\nTHE PRESIDENT. Well, I think if you look at my voting\nCongress. February 9, 1976\nrecord for 25-plus years in the House of Representatives\nwhere I voted over 4,000 times, if you will look at the\nToday I am sending a message to the ress that\nvoting record, you will find that it could not be categorized\nexpresses my confidence and support of older Americans,\nas a candidate of big labor, big business.\nmy very deep concern about the problems of the aging,\nGERALD\nR.\nFORD\nVolume 12-Number 7\nLIBRARY\nthem. Society owes a very deep debt of gratitude to all\nto limit Medicare reimbursement rates 11) 7 reent for\nolder persons who have worked hard and contributed\nhospital services and 4 percent for physician services.\nsignificantly to our Nation's progress.\nThese proposals are of particular importance in achieving\nOlder Americans continue to enrich our lives with their\nmy goal of helping all Americans live in dignity, security\nvision, strength and experience. They have earned the\nand good health.\nright to live securely, comfortably and independently. The\nI hope you will join me in efforts to secure agressional\nproposals that I am sending to the Congress offer signifi-\npassage of these important proposals. We must show our\ncant improvements in the quality of life for all older\ncommitment to a cause that is often too long neglected-\nAmericans.\nthe dignity and well-being of America's older generations.\nWc all have a great stake in fighting inflation, but older\nI will now sign the messages to the Gongress-one to\nAmericans living on fixed incomes are especially hard hit.\nthe House and one to the Scnate urging that they under-\nI pledge to continue the fight against inflation.\ntake the enactment of this necessary legislation.\nTo provide special relief to the elderly, I am requesting\nThank you very much.\nin my budget for fiscal year 1977 that the full cost of living\nNOTE: The President spoke at 10:05 a.m. at a ceremony in the Oval\nincrease in social security benefits are paid during the\nOffice at the White House.\ncoming year.\nThe value of the social security system is beyond chal-\nlenge. I am concerned, however, about the integrity of the\nSecurity Trust Fund that enables people to count\non this source of retirement income. I am concerned be-\nOlder Americans\ncause the system now pays out more in benefits than it\nreceives in tax payments.\nThe President's Message to the Congress.\nTo prevent a rapid decline in the Trust Fund over the\nFebruary I, 1976\nnext few years, I had to make a very difficult decision. I\nam proposing a small payroll tax increase of three-tenths\nTo the Congress of the United States:\nof one percent each--for employees as well as employ-\nI ask the Congress to join with me in making improve-\ners-of covered wages. The alternative would have been\nments in programs serving the elderly.\nto limit expected increases in retirement and disability\nAs President, 1 intend to do everything in my power\npayments. This proposed tax increase will help to stabilize\nto help our nation demonstrate by its deeds a deep con-\nthe Trust Fund so that current and future recipients will\ncern for the dignity and worth of our older persons. By\nbe fully assured of receiving the benefits they are\nso doing, our nation will continue to benefit from the\nentitled to.\ncontributions that older persons can make to the strength-\nI am also very concerned about the effect of cata-\nening of our nation.\nstrophic illnesses. I want to lighten the financial burden\nThe proposals being forwarded to Congress are directly\nwhich now strikes after prolonged hospitalization-when\nrelated to the health and security of older Americans.\nthe elderly and their families can least afford it. Therefore,\nTheir prompt enactment will demonstrate our concern\nI am proposing catastrophic health insurance for the more\nthat lifetimes of sacrifice and hard work conclude in hope\nthan 24 million Americans and disabled Americans pro-\nrather than despair.\ntected by Medicare.\nThe single greatest threat to the quality of life of older\nNo one who is covered by Medicare would have to pay\nAmericans is inflation. Our first priority continues to\nmore than $500 a year for covered hospital or nursing\nbe the fight against inflation. We have been able to re-\nhome care. No one who is covered by Medicare would\nduce by nearly half the double digit inflation erienced\nhave to pay more than $250 for one year's doctor bills.\nin 1974. But the retired, living on fixed incomes, have been\nBeneficiaries and their physicians now have little incen-\nparticularly hard hit and the progress we have made in\ntive to limit the duration of hospitalization for less scrious\nreducing inflation has not benefited them enough. We\nconditions.\nwill continue our efforts to reduce federal spending, bal-\nTo encourage economic use of covered health services,\nance the budget, and reduce taxes. The particular vul-\nI am also proposing changes in cost-sharing arrange-\nnerability of the aged to the burdens of inflation, how-\nments. As under the current system, a beneficiary who is\never, requires that specific improvements be made in two\nin the hospital will pay $104 a day for the first day of hos-\nmajor Federal programs, Social Security and Medicare.\npital services. In addition, he or she will pay 10 percent\nWe must begin by insuring that the Social Security\nof additional charges up to an annual maximum of $500.\nsystem is beyond challenge. Maintaining the integrity of\nFor covered physician services, my proposal would in-\nthe system is a vital obligation each generation has to\ncrease the annual deductible from $60 to $77 and would\nthose who have worked hard and contributed in it all\ncontinue the current 20 percent cost sharing.\ntheir lives. I strongly reaffirm my commitment FORD stable\nVolume 12-Number 7\n1976\n169\nand financially sound Social Security system. My 1977\nFirst, I propose extending Medicare benefits by providing\nbudget and legislative program include several elements\ncoverage for unlimited days of hospital and skilled nursing\nwhich I believe are essential to protect the solvency and\nfacility care for beneficiaries. Second, I propose to limit\nintegrity of the system.\nthe out-of-pocket expenses of beneficiaries, for covered\nFirst, to help protect our retired and disabled citizens\nservices, to $500 per year for hospital and skilled nursing\nagainst the hardships of inflation, my budget request to\nservices and $250 per year for physician and other non-\nthe Congress includes a full cost of living increase in\ninstitutional medical services.\nSocial Security benefits, to be effective with checks rc-\nThis will mean that each year over a billion dollars of\nceived in July 1976. This will help maintain the pur-\nbenefit payments will be targeted for handling the finan-\nchasing power of 32 million Americans.\ncial burden of prolonged illness. Millions of older persons\nSecond, to insure the financial integrity of the Social\nlive in fear of being stricken by an illness that will call for\nSecurity trust funds, I am proposing legislation to increase\nexpensive hospital and medical care over a long period\npayroll taxes by three-tenths of one percent each for cm-\nof time. Most often they do not have the resources to pay\nployees and employers. This increase will cost no worker\nthe bills. The members of their families share their fears\nmore than $1 a week, and most will pay less. These addi-\nbecause they also do not have the resources to pay such\ntional revenues are needed to stabilize the trust funds SO\nlarge bills. We have been talking about this problem for\nthat current income will be certain to either equal or\nmany years. We have it within our power to act now SO\nexceed current outgo.\nthat today's older persons will not be forced to live under\nThird, to avoid serious future financing problems I\nthis kind of a shadow. I urge the Congress to act promptly.\nwill submit later this year a change in the Social Security\nAdded steps are needed to slow down the inflation of\nlaws to correct a serious flaw in the current system. The\nhealth costs and to help in the financing of this cata-\ncurrent formula which determines benefits for workers\nstrophic protection. Therefore, 1 am recommending that\nwho retire in the future does not properly reflect wage\nthe Congress limit increases in medicare payment\nand price fluctuations. This is an inadvertent error which\nrates in 1977 and 1978 to 7% a day for hospitals and\ncould lead to unnecessarily inflated benefits.\n4% for physician services.\nThe change I am proposing will not affect cost of living\nAdditional cost-sharing provisions are also needed to\nincreases in benefits after retirement, and will in no way\nencourage economical use of the hospital and medical\nalter the benefit levels of current recipients. On the other\nservices included under Medicare. Therefore, I am rec-\nhand, it will protect future generations against unneces-\nommending that patients pay 10% of hospital and nurs-\nsary costs and excessive tax increases.\ning home charges after the first day and that the existing\nI believe that the prompt enactment of all of these\ndeductible for medical services be increased from $60 to\nproposals is necessary to maintain a sound Social Security\n$77 annually.\nsystem and to preserve its financial integrity.\nThe savings from placing a limit on increases in medi-\nIncome security is not our only concern. We need to\ncare payment rates and some of the revenue from in-\nocus also on the special health care needs of our elder\ncreased cost sharing will be used to finance the cata-\ncitizens. Medicare and other Federal health programs\nstrophic illness program.\nhave been successful in improving access to quality medi-\nI feel that, on balance, these proposals will provide our\ncal care for the aged. Before the inception of Medicare\nelder citizens with protection against catastrophic illness\nand Medicaid in 1966, per capita health expenditures\ncosts, promote efficient utilization of services, and moder-\nfor our aged were $445 per year. Just eight years later,\natc the increases in health care costs.\nin FY 1974, per capita health expenditures for the elderly\nThe legislative proposals which I have described are\nhad increased to $1218, an increase of 171 percent. But\nonly part of the over-all effort we are making on behalf\ndespite the dramatic increase in medical services made\nof older Americans. Current conditions call for continued\npossible by public programs, some problems remain.\nand intensified action on a broad front.\nThere are weaknesses in the Medicare program which\nWe have made progress in recent years. We have re-\nmust be corrected. Three particular aspects of the cur-\nsponded, for example, to recommendations made at the\nrent program concern me: 1) its failure to provide our\n1971 White House Conference on Aging. A Supplemental\nelderly with protection against catastrophic illness costs,\nSecurity Income program was enacted. Social Security\n2) the serious effects that health care cost inflation is\nbenefits have been increased in accord with increases in\nhaving on the Medicare program, and 3) lack of incen-\nthe cost of living. The Social Security retirement test was\ntives to encourage efficient and economical use of hospi-\nliberalized. Many inequities in payments to women have\ntal and medical services. My proposal addresses each of\nbeen climinated. The 35 million workers who have earned\nthese problems.\nrights in private pension plans now have increased\nIn my State of the Union Message I proposed protec-\nprotection.\ntion against catastrophic health expenditures for Medi-\nIn addition we have continued to strengthen the Older\ncare beneficiaries. This will be accomplished in two ways.\nAmericans Act. I have supported GERALLO concept FORD of the Older\nVolume 12-Number 7\nLISAARY\nits progress in pan by its ability to rec. gnize,\nvember signed the most recent amendments into law.\nrespect and renew the contributions of carlier generations.\nA key component of the Older Americans Act is the\nI believe that the Social Security and Medicare improve-\nnational network on aging which provides a solid founda-\nments I am proposing, when combined with the action\ntion on which action can be based. I am pleased that we\nprograms under the Older Americans Act, will insure a\nhave been able to assist in setting up this network of 56\nmeasure of progress for the elderly and thus provide real\nState and 489 Area Agencies on Aging, and 700 local\nhope for us all.\nnutrition agencies. These local nutrition agencies for ex-\nGERALD R. FORD\nample provide 300,000 hot meals a day five days a week.\nThe White House,\nThe network provides a structure which can be used to\nFebruary 9, 1976.\nattack other important problems. A concern of mine is\nthat the voice of the elderly, as consumers, be heard in the\ngovernmental decision-making process. The network on\naging offers opportunities for this through membership\nDepartment of Health,\non advisory councils related to State and Area Agencies\non Aging, Nutrition Project Agencies and by participation\nEducation, and Welfare\nin public hearings on the annual State and Arca Plans.\nSuch involvement can and will have a significant impact\nAnnouncement of Intention To Nominate\non determining what services for the aging are to be given\nWilliam H. Taft IV To Be General Counsel.\nthe highest priorities at the local level.\nFebruary 9, 1976\nThe principal goal of this National Network on Aging\nThe President today announced his intention to nomi-\nis to bring into being coordinated comprehensive systems\nnate William H. Taft IV, of Alexandria, Va., to be Gen-\nfor the provision of service to the elderly at the community\neral Counsel of the Department of Health, Education,\nlevel. I join in the call for hard and creative work at all\nand Welfare. Hc will succeed John Rhinelander, who was\nlevels-Federal, State and Area in order to achieve this\nappointed Under Secretary of the Department of Housing\nobjective. I am confident that progress can be made.\nand Urban Development on September 11, 1975. Mr.\nToward this end, the Administration on Aging and a\nTaft has been Assistant to the Secretary of HEW since\nnumber of Federal Departments and agencies have signed\nMarch 1973.\nagreements which will help to make available to older\nMr. Taft was born on September 13, 1945, in Wash-\npersons a fair share of the Federal funds available in\nington, D.C. He attended Yale University and received his\nsuch areas as housing, transportation, social services, law\nB.A. degree in 1966. Hc received his J.D. from Harvard\nenforcement, adult education and manpower-resources\nLaw School in 1969.\nwhich can play a major role in enabling older persons to\nIn January 1970, Mr. Taft became an attorney-advisor\ncontinue to live in their own homes.\nin the Office of the Chairman of the Federal Trade Com-\nDespite these efforts, however, five percent of our older\nmission. He was appointed Special Assistant in the\nmen and women require the assistance provided by skilled\nDeputy Director of the Office of Management and Budget\nnursing homes and other long term care facilities. To assist\nin August 1970. From August 1972 to March 1973, he\nthese citizens, an ombudsman process, related solely to the\nwas Executive Assistant to the Director of OMB.\npersons in these facilities, is being put into operation by\nMr. Taft is married to the former Julia Vadala.\nthe National Network on Aging. We believe that this pro-\ngram will help to resolve individual complaints, facilitate\nimportant citizen involvement in the vigorous enforcement\nof Federal, State and local laws designed to improve health\nand safety standards, and to improve the quality of care\nAssistant Press Secretary\nin these facilities.\nto the President\nToday's older persons have made invaluable contribu-\ntions to the strengthening of our nation. They have pro-\nAnnouncement of Appointment of Larry Speakes.\nvided the nation with a vision and strength that has\nFebruary 9, 1976\nresulted in unprecedented advancements in all of the arcas\nof our life. Our national moral strength is due in no small\nThe President today announced the appointment of\npart to the significance of their contributions. We must\nLarry Speakes, of Merigold, Miss., as Assistant Press Sec-\ncontinue and strengthen both our commitment to doing\nretary to the President. He became a member of the staff\neverything WC can to respond to the needs of the elderly\nof the Office of the Press Secretary in August 1974.\nand our determination to draw on their strengths.\nBorn in Cleveland, Miss., on September 13, 1939, Mr.\nOur entire history has been marked by a tradition of\nSpeakes attended the University of Mississippi where hc\ngrowth and progress. Each succeeding generation can\nmajored in journalism.\nVolume 12-Number 7\nR.\nGERALD\nPEOPLE\n3/5/76\n3/5/76\nOlder American\n* Signed into law Title XX of the Social Security\nAct which provides 2.5 billion dollars to the states\nfor social services.\nUnder Title XX older persons will receive increased\nservices, planned and implemented by state and local\ngovernments -- needs and services determined not in\nWashington but at the local level, with the partici-\npation of the older Americans who will receive the\nservices. And lastly, under President Ford's\nnew Title XX proposal, states would no longer be\nrequired to give the federal government money in order\nto obtain federal monies in return.\nPresident Ford has supported the concept of the Older\nAmericans Act since its inception in 1965. This past\nNovember the President strengthened the Act when he signed\ninto law amendments creating new services and goals.\nUnder President Ford's Administration -- $272 million --\nalmost seven times the amount available three years earlier\nwent to this program. Through the Administration on Aging\na00\ncreated by this Act, a national network on aging composed\nof state, area and nutrition agencies has been established\nAs an example of what the Act does, nutrition agencies\nserve older persons over 300,000 hot meals a day, five\ndays a week at 5,000 locations. This network helps older.\npeople to:\nKnow what resources are available\nSecure services enabling them to live in their own\nhomes.\nMeet their needs for transportation\nProvide for the weatherization of their homes.\nObtain legal services\nContinue to be involved by serving in full-time,\npart-time and volunteer positions serving the\ncommunity.\nCope with housing problems\nHave a meaningful voice in setting priorities\nfor meeting their needs at the ločal level.\nGE,\nIBRARY\nThe Presic\nReport is\nThe President Ford Committee, Howard H. Callaway, Chairman, Robert Mosbacher, National Finance Chairman, Robert C. Moot, Treasurer A\nReport is filed with the Federal Election Commission and is available for purchase from the Federal Election Commission, Washington,\nSUPPLEMENTAL RETIREMENT PROGRAMS\nUpon being asked his opinion on legislation permitting\nall citizens to provide for a portion of their retirement\nthrough the mechanism of the individual retirement accounts,\nthe President responded:\n\"I was a supporter of what we call the Keogh\nplan, and I am sure you are familiar with that.\nThat has been increased from $1500 to $2500, as\nI recollect. There is the IRA program. I have\nrecommended something along this line so that\nindividuals can invest in American corporations and\nget a tax deferral.\nIn other words, I think it is $1500 a year. If\nthey invest in American corporate securities, they\ncan then get a deferral of their tax and pay the\ntax when they retire at the retirement age. I\nhappen to believe very strongly in supplemental\nretirement programs, whether it is Keogh or any\none of the others. So, anything that can be jus-\ntified within reason, the answer is categorically\nyes. \"\nPresident Gerald R. Ford\nQ & A Session at Public Forum\nChampaign, Illinois\nMarch 6, 1976\nGERALD R.\nLIBRARY FORD\nOLDER AMERICANS\nSPECIAL MESSAGE\nQUESTION: Mr. President, I am retired from the\nU.S. Air Force, a Pearl Harbor survivor. What I would like\nto know, sir, is do you have any program with relation to\npay for the retired service people of the United States?\nTHE PRESIDENT: Well, I recognize the problem that\nall people who are retired have with inflationary difficulties\nthat we have had in the country for the last 18 -- well, the\nlast three years, really. We are making headway on that,\nbut with the escalator clauses that we have in military\nretirement, Social Security, railroad retirement and so forth,\nI think we can honestly say that those who are retired are\nconsidered to get an adequate amount for the benefit of their\nfuture and I intend to see that those escalator clauses are\nmaintained.\nI believe that as we attack effectively inflation\nthat those who are retired, whether it is military retirement\nor Social Security, railroad retirement or Government retirement,\ncan feel a security and a sufficiency in their older years, and\nI will fight to maintain those.\nPresident Ford\nMarch 13, 1976\nWest Wilkes High School Gym.\nWilkesboro, North Carolina\nLIBRARY\nof\nGERALD\nSOCIAL SECURITY\nSOCIAL PROGRAMS\nQUESTION: My question relates to Social Security.\nIn 1975, the maximum amount of Social Security paid on\nbehalf of any one person was a maximum of $348. Now in 1976\nsomeone earning $15, 300 pays a combined employee-employer\ntotal of $1790, so in just over ten years we had a 414 percent\nincrease in the cost to middle income American taxpayers.\nAnd there is no end in sight, apparently, because a deficit\noccurred this year for the first time so more and more money\nis going to have to be raised, so your solution is to increase\nregressiveness of that tax by increasing another three-tenths\nof one percent and further burdening the low and middle\nincome taxpayers in this country.\nBut let me answer the other question, and I am\nglad you brought it up. It is a very serious problem we\nare facing. The Social Security Trust Fund this year will\nhave a deficit between income and outgo of $3 billion. Next\nyear it will have a deficit of: $3.5 to $4 billion, the next\nyear it will be closer to $5 billion. At the present time\nwe have a Trust Fund of about $40 billion, so if we do\nnothing, you are bound to have, in a relatively short period\nof time, some time early in the 1980's, a deficit. There\nwon't be any Trust Fund.\nSo you really have about three different answers.\nYou can either do as I recommended, which I think is\nthe honest and straightforward approach, to say that we\nhave got to increase the taxes three-tenths of one percent\non or one-sixth of one percent on the employer and the\nemployee.\nGERALD\nso\nPresident Gerald Ford\nMary E. Sawyer Auditorium\nLaCrosse, Wisconsin\nMarch 27, 1976\n94th Congress, 2d Session\n-\n-\n-\nHouse Document No. 94-363\nIMPROVING PROGRAMS FOR THE ELDERLY\nMESSAGE\nFROM\nTHE PRESIDENT OF THE UNITED STATES\nTRANSMITTING\nPROPOSALS FOR IMPROVEMENTS IN PROGRAMS SERVING\nTHE ELDERLY\nFEBRUARY 9, 1976.-Message referred to the Committee on Ways and\nMeans and ordered to be printed\nU.S. GOVERNMENT PRINTING OFFICE\n57-011\nWASHINGTON : 1976\nFORD R. GERALD LIBRARY\nTo the Congress of the United States:\nI ask the Congress to join with me in making improvements in pro-\ngrams serving the elderly.\nAs President, I intend to do everything in my power to help our\nnation demonstrate by its deeds a deep concern for the dignity and\nworth of our older persons. By SO doing, our nation will continue to\nbenefit from the contributions that older persons can make to the\nstrengthening of our nation.\nThe proposals being forwarded to Congress are directly related to\nthe health and security of older Americans. Their prompt enactment\nwill demonstrate our concern that lifetimes of sacrifice and hard work\nconclude in hope rather than despair.\nThe single greatest threat to the quality of life of older Americans is\ninflation. Our first priority continues to be the fight against inflation.\nWe have been able to reduce by nearly half the double digit inflation\nexperienced in 1974. But the retired, living on fixed incomes, have been\nparticularly hard hit and the progress we have made in reducing infla-\ntion has not benefited them enough. We will continue our efforts to re-\nduce federal spending, balance the budget, and reduce taxes. The par-\nticular vulnerability of the aged to the burdens of inflation, however,\nrequires that specific improvements be made in two major Federal\nprograms, Social Security and Medicare.\nWe must begin by insuring that the Social Security system is beyond\nchallenge. Maintaining the integrity of the system is a vital obligation\neach generation has to those who have worked hard and contributed to\nit all their lives. I strongly reaffirm my commitment to a stable and\nfinancially sound Social Security system. My 1977 budget and legisla-\ntive program include several elements which I believe are essential to\nprotect the solvency and integrity of the system.\nFirst, to help protect our retired and disabled citizens against the\nhardships of inflation, my budget request to the Congress includes a\nfull cost of living increase in Social Security benefits. to be effective\nwith checks received in July 1976. This will help maintain the pur-\nchasing power of 32 million Americans.\nSecond, to insure the financial integrity of the Social Security trust\nfunds, I am proposing legislation to increase payroll taxes by three-\ntenths of one percent each for employees and employers. This increase\nwill cost no worker more than $1 a week, and most will pay less. These\nadditional revenues are needed to stabilize the trust funds so that cur-\nrent income will be certain to either equal or exceed current outgo.\nThird, to avoid serious future financing problems I will submit later\nthis year a change in the Social Security laws to correct a serious flaw\nin the current system. The current formula which determines benefits\nfor workers who retire in the future does not properly reflect wage and\nprice fluctuations. This is an inadvertent error which could lead to\nunnecessarily inflated benefits.\n(1)\nH.D. 363\n2\n3\nThe change I am proposing will not affect cost of living increases\nThe savings from placing a limit on increases in medicare payment\nin benefits after retirement, and will in no way alter the benefit levels\nrates and some of the revenue from increased cost sharing will be used\nof current recipients. On the other hand, it will protect future gen-\nto finance the catastrophic illness program.\nerations against unnecessary costs and excessive tax increases.\nI feel that, on balance, these proposals will provide our elder citi-\nI believe that the prompt enactment of all of these proposals is\nzens with protection against catastrophic illness costs, promote efficient\nnecessary to maintain a sound Social Security system and to preserve\nutilization of services, and moderate the increases in health care costs.\nits financial integrity.\nThe legislative proposals which I have described are only part of\nIncome security is not our only concern. We need to focus also on\nthe over-all effort we are making on behalf of older Americans. Cur-\nthe special health care needs of our elder citizens. Medicare and other\nrent conditions call for continued and intensified action on a broad\nFederal health programs have been successful in improving access\nfront.\nto quality medical care for the aged. Before the inception of Medicare\nWe have made progress in recent years. We have responded, for\nand Medicaid in 1966, per capita health expenditures for our aged\nexample, to recommendations made at the 1971 White House Confer-\nwere $445 per year. Just eight years later, in FY 1974, per capita health\nence on Aging. A Supplemental Security Income program was en-\nexpenditures for the elderly had increased to $1218, an increase of 174\nacted. Social Security benefits have been increased in accord with\npercent. But despite the dramatic increase in medical services made\nincreases in the cost of living. The Social Security retirement test was\npossible by public programs, some problems remain.\nliberalized. Many inequities in payments to women have been elimi-\nThere are weaknesses in the Medicare program which must be cor-\nnated. The 35 million workers who have earned rights in private pen-\nrected. Three particular aspects of the current program concern me 1)\nsion plans now have increased protection.\nits failure to provide our elderly with protection against catastrophic\nIn addition we have continued to strengthen the Older Americans\nillness costs, 2) the serious effects that health care cost inflation is\nAct. I have supported the concept of the Older Americans Act since\nhaving on the Medicare program, and 3) lack of incentives to en-\nits inception in 1965, and last November signed the most recent\ncourage efficient and economical use of hospital and medical services.\namendments into law.\nMy proposal addresses each of these problems.\nA key component of the Older Americans Act is the national net-\nIn my State of the Union Message I proposed protection against\nwork on aging which provides a solid foundation on which action can\ncatastrophic health expenditures for Medicare beneficiaries. This will\nbe based. I am pleased that we have been able to assist in setting up\nbe accomplished in two ways. First, I propose extending Medicare\nthis network of 56 State and 489 Area Agencies on Aging, and 700\nbenefits by providing coverage for unlimited days of hospital and\nlocal nutrition agencies. These local nutrition agencies for example\nskilled nursing facility care for beneficiaries. Second, I propose to\nprovide 300,000 hot meals a day five days a week.\nlimit the out-of-pocket expenses of beneficiaries, for covered services,\nThe network provides a structure which can be used to attack other\nto $500 per year for hospital and skilled nursing services and $250\nimportant problems. A concern of mine is that the voice of the elderly,\nper year for physician and other non-institutional medical services.\nas consumers, be heard in the governmental decision-making process.\nThis will mean that each year over a billion dollars of benefit pay-\nThe network on aging offers opportunities for this through member-\nments will be targeted for handling the financial burden of prolonged\nship on advisory councils related to State and Area Agencies on Aging,\nillness. Millions of older persons live in fear of being stricken by an\nNutrition Project Agencies and by participation in public hearings on\nillness that will call for expensive hospital and medical care over a\nthe annual State and Area Plans. Such involvement can and will have\nlong period of time. Most often they do not have the resources to pay\na significant impact on determining what services for the aging are to\nthe bills. The members of their families share their fears because they\nbe given the highest priorities at the local level.\nalso do not have the resources to pay such large bills. We have been\nThe principle goal of this National Network on Aging is to bring\ntalking about this problem for many years. We have it within our\ninto being coordinated comprehensive systems for the provision of\npower to act now SO that today's older persons will not be forced to\nservice to the elderly at the community level. I join in the call for hard\nlive under this kind of a shadow. I urge the Congress to act promptly.\nand creative work at all levels-Federal, State and Area in order to\nAdded steps are needed to slow down the inflation of health costs\nachieve this objective. I am confident that progress can be made.\nand to help in the financing of this catastrophic protection. There-\nToward this end, the Administration on Aging and a number of\nfore, I am recommending that the Congress limit increases in medicare\nFederal Departments and agencies have signed agreements which will\npayment rates in 1977 and 1978 to 7% a day for hospitals and 4% for\nhelp to make available to older persons a fair share of the Federal\nphysician services.\nfunds available in such areas as housing, transportation, social serv-\nAdditional cost-sharing provisions are also needed to encourage\nices, law enforcement. adult education and manpower--resources\neconomical use of the hospital and medical services included under\nwhich can play a major role in enabling older persons to continue to\nlive in their own homes.\nMedicare. Therefore, I am recommending that patients pay 10% of\nhospital and nursing home charges after the first day and that the\nDespite these efforts. however, five percent of our older men and\nexisting deductible for medical services be increased from $60 to $77\nwomen require the assistance provided by skilled nursing homes and\nannually.\nother long term care facilities. To assist these citizens, an ombudsman\nGRAPY\nH.D. 363\nH.D. 363\n4\nprocess, related solely to the persons in these facilities, is being put into\noperation by the National Network on Aging. We believe that this pro-\ngram will help to resolve individual complaints, facilitate important\ncitizen involvement in the vigorous enforcement of Federal, State and\nlocal laws designed to improve health and safety standards, and to\nimprove the quality of care in these facilities.\nToday's older persons have made invaluable contributions to the\nstrengthening of our nation. They have provided the nation with a\nvision and strength that has resulted in unprecedented advancements\nin all of the areas of our life. Our national moral strength is due in no\nsmall part to the significance of their contributions. We must continue\nand strengthen both our commitment to doing everything we can to\nrespond to the needs of the elderly and our determination to draw on\ntheir strengths.\nOur entire history has been marked by a tradition of growth and\nprogress. Each succeeding generation can measure its progress in part\nby its ability to recognize, respect and renew the contributions of ear-\nlier generations. I believe that the Social Security and Medicare im-\nprovements I am proposing, when combined with the action programs\nunder the Older Americans Act, will insure a measure of progress for\nthe elderly and thus provide real hope for us all.\nGERALD R. FORD.\nTHE WHITE HOUSE, February 9, 1976.\nH.D. 363\n94th Congress, 2d Session\n-\nHouse Document No. 94-383\nFeb 26, 1976\nFINANCIAL ASSISTANCE FOR HEALTH CARE\nMESSAGE\nFROM\nTHE PRESIDENT OF THE UNITED STATES\nURGING ENACTMENT OF LEGISLATION TO REFORM\nFEDERAL HEALTH CARE PROGRAMS\nFEBRUARY 26, 1976.-Message referred to the Committee on Interstate\nand Foreign Commerce and ordered to be printed\nU.S. GOVERNMENT PRINTING OFFICE\n57-011\nWASHINGTON : 1976\nSEHALD R. FORD\nLIBRARY\n00\nTo the Congress of the United States\nThe health of our people is one of our Nation's most vital resources.\nSignificant progress has been made in improving the health of the\nNation's people during the last 25 years, as can be seen in the reductions\nin the infant mortality rate, increases in life expectancy, and the con-\nquering of some communicable diseases. This progress has come under\na largely private health care system with the support of public funds.\nIn the past 10 year period (1965-1975) Federal spending for health\nhas increased from $5 billion to $37 billion. With greater Federal\nfunding has come a multitude of Federal programs, regulations and\nrestrictions-all motivated by the best of intentions but each adding\nto the confusion and overlap and inequity that now characterizes our\nefforts at the national level.\nToday I am proposing to the Congress legislation that addresses\nthese problems. I am asking Congress to enact the Financial Assist-\nance for Health Care Act which will consolidate Medicaid and 15\ncategorical Federal health programs into a $10 billion block grant\nto the States. I am proposing that future Federal funding for this\nnew program be increased annually in increments of $500 million plus\nthe amounts needed after 1980 to ensure that no State will in the\nfuture receive less under this proposal than it received in fiscal year\n1976.\nThe Financial Assistance for Health Care proposal is being sub-\nmitted after extensive consultation with organizations representing\nthe publicly elected officials who will be responsible for administering\nthe program. I believe this proposal represents a major step toward\novercoming some of the most serious defects in our present system\nof Federal financing of health care.\nMy proposal is designed to achieve a more equitable distribution\nof Federal health dollars among States and to increase State control\nover health spending. My proposal also recognizes the appropriate\nFederal role in providing financial assistance to State and local gov-\nernments to improve the quality and distribution of health services.\nThe enactment of this legislation will achieve a more equitable dis-\ntribution of Federal health dollars by providing funds according to a\nformula giving primary weight to a State's low-income population.\nThe formula also takes into account the relative \"tax effort\" made by\na State and the per capita income of that State.\nLet me emphasize that every State will receive more Federal funds\nin fiscal years 1977, 1978 and 1979 under the block grant than it re-\nceived in fiscal year 1976. My proposal also allows for a gradual\nphase-in of the distribution formula in future years to ensure a sys-\ntematic, orderly transition that will permit States to adjust to the\nnew program.\nTo assure accountability and responsiveness to the public, my pro-\nposal requires each State to develop an annual health care plan as a\ncondition to receiving Federal funds. This plan will be developed\n(1)\nH.D. 383\n2\n3\nthrough a Statewide public review and comment process which will as-\nneeded now. The Medicare Improvements of 1976 that I recommended\nsure participation by all concerned parties. Thus, increased State re-\nto the Congress on February 11 also represents a balanced response to\nsponsibility will be coupled with expanded public participation, and\nneeded program reforms. This proposal is designed to improve cata-\naccountability in the development of State health policies.\nstrophic health cost protection for our aged and disabled, restrain cost\nThis proposed consolidation of health programs is essential to con-\nincreases in the Medicare program and provide training for the hos-\ntinue our national progress in the field of health. It is designed to per-\npital insurance trust fund.\nmit States greater flexibility in providing for delivery of health care\nI request that the Congress give both these measures the earliest\nservices to those with low income. It eliminates the requirements for\npossible consideration.\nState matching. And it recognizes the need for a cooperative relation-\nGERALD R. FORD.\nship among governments at all levels. My proposal would reduce Fed-\nTHE WHITE HOUSE, February 25, 1976.\neral red tape, increase local control over health spending, and expand\npublic participation in health planning.\nWhile I am proposing to increase State control over health spending,\nwe will continue to concentrate our efforts in areas of appropriate Fed-\neral responsibility. For example, my budget proposals for 1977 include\nthe following:\nIn food and drug safety, I have asked for $226 million in 1977,\nan increase of $17 million, to enable further progress in priority\nareas;\nIn the area of drug abuse prevention, I propose almost $500 mil-\nlion for prevention and treatment to expand national drug abuse\ntreatment capacity to meet the current need;\nMy budget requests more than $3 billion for health research, in-\ncluding continued support of major national efforts in cancer and\nheart disease research and support for new scientific opportuni-\nties in the fields of environmental health, aging, and immunology\nIn our effort to improve the training and utilization of doctors\nand other health professionals, I have requested new legislation\nand funding of $319 milloin, designed to concentrate on the prob-\nlems of geographic and specialty maldistribution of health\nprofessionals;\nTo assist local communities to attract physicians, dentists and\nother health professionals to underserved areas, I am proposing to\nexpand the National Health Service Corps demonstration pro-\ngram 38 percent from $18 million to $25 million.\nTo assist the development of a strong health maintenance al-\nternative, I have directed HEW to move rapidly in administering\nthe dual option provisions of the HMO Act. And, to complete the\n5-year effort to demonstrate and test the health maintenance or-\nganization concept, I have requested an additional year's authori-\nzation for new commitments. As of last June, there were 10 health\nmaintenance organizations certified through the dual option\nprovisions;\nTo provide improved health services to American Indians and\nAlaska Natives, I am asking for $355 million. Spending by the\nIndian Health Service alone in 1977 will result in over $685 per\nbeneficiary, or over $2,740 per Indian family of four;\nIn the area of veterans' health care, I have requested $4.5 billion\nto assure continued quality care by providing for increases in\nmedical staff and research related to VA health care delivery.\nGEHALD\nH.\nFORD\nA realistic assessment of the present health care programs and the\nresponsibilities of Federal, State, and local governments fully demon-\nstrates that the reforms I am proposing in Federal health care are\nLIBRARY\nH.D. 383\nH.D. 383"
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