What Can Older Americans Expect From A Biden Presidency?
No one can predict what the impact of a Biden presidency will be on Older Americans. The very pro-Senior measures below will certainly be affected by who controls congress, when President elect Biden officially takes office January 20, 2021.
Social Security
Social Security is the sole source of retirement income for 40.2% of Americans. Social Security is funded primarily from payroll taxes, which have been substantially cut over the last 4 years. President elect Biden has indicated that he would raise payroll taxes on those Americans who earn a higher income. This will help shore up the solvency of this critical program.
Traditionally, Social Security benefits are based upon the wages you have earned, however, President elect Biden has proposed increasing Social Security benefits for the lowest wage earners. Those Americans earning the least, could see increases of up to $6,500 per year. The Social Security Administration indicated that this initiative could raise more than a half million people out of poverty by 2030.
The Biden plan would also raise benefits for widows/widowers by allowing the survivor to keep 75% of their combined benefits.
Drug Prices
The Biden plan has a number of initiatives to help older Americans afford their prescriptions drugs, including:
Lowering drug prices and increasing regulation on drug companies.
Medicare would be allowed to negotiate with drug companies over prices.
The plan proposes that there will be limits on the prices of prescription drugs to avoid price gauging.
Americans will be allowed to purchase medications in other countries to increase competition among American drug companies.
The quality of generic medications will have to be improved.
Pharmaceutical tax breaks for advertisement spending will be terminated.
Tax Credit for Family Caregivers
President elect Biden has voiced concern over the need to support Family Caregivers. Support would be rendered in the form of:
The creation of a $5,000 tax credit for family caregivers who care for and keep an older relative out of the nursing home.
Enacting the the CARE (Caregiver Advise, Record, Enable) Act at the federal level. The Care Act that has been endorsed by AARP and passed in 39 states. The Act ensures that caregivers are given appropriate discharge instruction when the older person they care for is discharged from the hospital.
The provision of respite care to give Caregivers a break from their caregiving responsibilities.
The issue of paid family leave for those providing care to older family members will be examined.
Those who stay home to care for an aging parent would get credit towards their own Social Security benefits.
To improve the quality of care rendered to seniors, it is proposed that wages of direct care workers like home health aides be raised.
He would also increase the tax subsidies for purchasing long-term care insurance.
Retirement Taxes
A new tax structure on retirement savings will be proposed to make tax savings more equal. The deduction based upon amount of contribution would be changed to a percentage-based credit to equalize the tax savings across income levels.
Encourage Older Americans to Work Longer
The Biden plan would impose new rules against age discrimination to help those who want to work beyond 65. To encourage continued saving by these seniors, the plan would also extend the earned income tax credit beyond age 65.
Covid-19 Response
On President elect Biden’s website, there is a comprehensive Covid-19 response plan. If enforceable and effective, it would reduce the risk to our most vulnerable populations.
Medicaid Benefits
For the 7 million seniors who depend upon the Medicaid program for care, President elect Biden proposes to protect and fund the Medicaid program.
Home and Community Based Care
With respect to home can community-based care that is covered by Medicaid, the plan would reduce the long waiting lists, so care can be started sooner.