ADVISORY
FROM THE HOUSE COMMITTEE ON WAYS AND MEANS
AND THE SENATE COMMITTEE ON FINANCE

Thomas and Grassley Announce Joint Hearing on the
Social Security and Medicare Trustees' 2001 Annual Reports

Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, and Senator Chuck Grassley (R-IA),  Chairman of the Senate Committee on Finance, today announced that their committees will hold a joint hearing to examine the findings and recommendations made by the Board of Trustees of the Social Security and Medicare Hospital Insurance trust funds in its 2001 Annual Reports on the financial status of the trust funds. The hearing will take place on Tuesday, March 20, 2001, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

In view of the limited time available to hear witnesses, oral testimony will be heard from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

The Board of Trustees was established under the Social Security Act to oversee the financial operations of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) and the Medicare Hospital Insurance (HI) trust funds. The Board is composed of six members: the Secretary of the Treasury (who is the Managing Trustee), the Secretary of Labor, the Secretary of Health and Human Services, the Commissioner of Social Security, and two members who are appointed by the President and confirmed by the Senate to serve as public trustees for four-year terms. The Social Security Act requires that the Board of Trustees report annually to the Congress on the financial and actuarial status of the OASDI and HI trust funds. The 2001 Annual Reports are scheduled to be released shortly.

Ensuring the financial viability of Medicare and Social Security is one of Congress' most important responsibilities. The annual release of the Trustees' Report provides a valuable update on the programs' fiscal well-being.

Over the past few years, the Trustees' annual reports have shown an improvement in the financial status of the OASDI trust funds, mainly due to increased economic growth. The 2000 Annual Report projected that the combined OASDI trust funds would begin running cash flow deficits in 2015 and would become insolvent in 2037. In that year, annual payroll taxes would be sufficient to pay 72 percent of promised benefits. President Bush has expressed his commitment to reforming Social Security and has announced his intention to strengthen Social Security and modernize the program for young and future workers, beginning with a Presidential Commission on Social Security reform. The findings of the Trustees will provide invaluable support to the Commission and the responsible committees in the House and Senate as proposals to save Social Security are considered.

The release of the 2001 Annual Report on the Medicare HI trust fund report will be particularly timely, because its findings will establish the financial parameters against which Medicare modernization plans will be evaluated. Over the next several months, Congress will be developing a comprehensive Medicare improvement package that will include a universally available outpatient prescription drug benefit. The Trustees' Report will help members evaluate new Medicare spending proposals and begin discussion on whether new solvency measures are needed to ascertain the program's overall financial standing.

In announcing the hearing, Chairman Thomas stated: "This historic joint hearing reflects our desire to work in a bipartisan and bicameral fashion to understand the fundamental challenges facing the long-term health of both Social Security and Medicare. I look forward to this hearing and to the report of the non-partisan Social Security and Medicare Trustees."

Chairman Grassley said, "This joint committee hearing underscores the importance the Committees place on ensuring the financial viability of these programs. The trustees' findings will provide critical guidance as we work to improve and strengthen Medicare and Social Security for the baby boomers and beyond."

FOCUS OF THE HEARING:

The hearing will examine the findings and recommendations of The 2001 Annual Reports of the Board of Trustees of the Federal OASDI and HI Trust Funds. The hearing will focus on the long-run financial status of the Social Security and Medicare HI programs.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, April 3, 2001, to Allison Giles, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Committee office, room 1102 Longworth House Office Building, by close of business the day before the hearing.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.