Heinrich Cosponsors Legislation to Protect Medicare and Social Security for New Mexico’s Seniors
WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.) cosponsored the Medicare and Social Security Fair Share Act, legislation that will ensure the long-term solvency of Medicare and Social Security by reversing inequities in the tax system so that high earners contribute a fairer share.
“Medicare and Social Security are benefits that New Mexicans have earned over a lifetime of hard work. I'm proud to support this legislation to protect these bedrock programs for New Mexicans by making the ultrawealthy pay their fair share,” said Heinrich.
Nearly 40% of seniors rely on Social Security for the majority of their incomes – benefits they have earned that let them retire with dignity. Medicare protects its over 60 million beneficiaries, one in five of whom have less than $15,000 in savings, from potentially catastrophic health care costs.
Despite their bedrock importance, these programs are both at risk of not being able to fully pay out benefits within the next 15 years. Without new revenue, the Hospital Insurance Trust Fund and the Old Age and Survivors Insurance Trust Fund are expected to become insolvent in 2028 and 2033, respectively.
The Medicare and Social Security Fair Share Act will increase funding for the Social Security and Medicare trust funds by extending the payroll tax on wages, self-employment income, and investment income to taxpayers making over $400,000. The legislation also applies a payroll tax on the pass-through business income, like hedge funds and private equity firms, of taxpayers earning more than $400,000, which will eliminate the classification of earned income as distributed business profits that is currently a major loophole. By applying these two provisions, we can extend Social Security solvency indefinitely and extend Medicare solvency by an estimated 20 years.
The Medicare and Social Security Fair Share Act is led by U.S. Senator Sheldon Whitehouse (D-R.I.). Alongside Heinrich, the legislation is cosponsored by U.S. Senators Kirsten Gillibrand (D-N.Y.), Chris Van Hollen (D-Md.), and Amy Klobuchar (D-Minn). The bill is led in the House by U.S. Representative Brendan F. Boyle (D-Pa.).
The bill is endorsed by the Alliance for Retired Americans; American Federation of Government Employees; American Federation of Labor and Congress of Industrial Organizations; American Federation of State, County and Municipal Employees; American Federation of Teachers; Americans for Tax Fairness; Center for Medicare Advocacy; Committee for a Responsible Federal Budget; Communications Workers of America; Doctors for America; Families USA; Groundwork Collaborative; International Federation of Professional and Technical Engineers; Main Street Alliance; Mary's Center; National Committee to Preserve Social Security and Medicare; National Council on Aging; National Education Association; NETWORK Lobby for Catholic Social Justice; People's Action; Public Citizen; Revolving Door Project; Social Security Works; and the Teamsters.
A one-page summary is here.
The text of the bill is here.
Background
Heinrich fought hard to pass the Inflation Reduction Act, historic legislation that lowers health care and prescription drug costs for working families.
This year, the Inflation Reduction Act began capping out-of-pocket costs for prescription drugs at an estimated $3,300, providing substantial relief for individuals facing high medication expenses. This new Medicare drug cap comes in tandem with several other major healthcare provisions Heinrich helped secure, including free vaccines for seniors and a $35 insulin cap for those on Medicare.
Last year, the White House announced 48 Medicare Part B drugs that raised their prices faster than inflation, and some drug companies raised prices of certain medications faster than inflation for every quarter in 2023. The IRA provisions Heinrich helped deliver will now require these companies to pay rebates back to Medicare, saving seniors who take these drugs between $1 and $2,786 per dose, depending on their medication.
The IRA also reduced the cost of marketplace health insurance premiums by an average of hundreds of dollars per person, for roughly 40,000 New Mexicans.
A longer list of provisions Heinrich helped to secure in the Inflation Reduction Act can be found here.
Heinrich introduced the Strengthening Medicare and Reducing Taxpayer (SMART) Prices Act, legislation that builds on a provision that was included in the Inflation Reduction Act to empower Medicare to negotiate prescription drug prices for the first time. Specifically, the bill would allow prescription drugs and biologics to be eligible for negotiation five years after approval by the Food and Drug Administration (FDA) — increasing the overall amount by which Medicare can lower prices through negotiation. Additionally, the SMART Prices Act would lower Medicare Part B drug prices through negotiation two years earlier than under current law, and increase the overall number of drugs that the Department of Health & Human Services (HHS) can negotiate starting in 2026.
Additionally, Heinrich is a cosponsor of the Pharmacy Benefit Manager Transparency Act, legislation that bans deceptive unfair pricing schemes, prohibits arbitrary clawbacks of payments made to pharmacies, and requires Pharmacy Benefit Managers (PBMs) to report to the Federal Trade Commission (FTC) how much money they make through spread pricing and pharmacy fees.
Heinrich also cosponsored the COLAs Don’t Count Act, legislation to exempt annual cost-of-living adjustments (COLA) from impacting the benefits of those who utilize the Supplemental Nutrition Assistance Program (SNAP) for food assistance. This would help ensure participants of SNAP are not losing benefits due to the added costs of inflation and allow families to keep food on the table.
Heinrich recently secured committee passage of his Fiscal Year 2025 Agriculture Appropriations Bill, legislation that delivers critical new resources to fully fund WIC and ensure all eligible women, infants, and children can get the nutrition they need. It also protects vital nutrition assistance programs for families across the country.
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