March 23,2005

Annual Report of the Social Security, Medicare Trustees

M E M O R A N D U M

To: Reporters and Editors
Re: Annual report of the Social Security and Medicare trustees
Da: Wednesday, March 23, 2005

Sen. Chuck Grassley, chairman of the Committee on Finance, today made the following comment on the annual report of the Social Security and Medicare trustees.

“Today’s trustees’ report reminds us once again that the retirement security of today’syounger workers remains in serious doubt. Congress needs to address Social Security’s financialproblems, and we should take advantage of the political leadership from the President to act thisyear. Younger workers deserve to know Social Security will be there for them.

“Based on the report, Congress also needs to examine ways to make the Medicare programmore effective by providing incentives that reward efficient, high quality care. Congress already tooka major step forward with the new benefits outlined in the Medicare Modernization Act of 2003. Weimproved payments to rural health providers and added a much-needed prescription drug benefit tokeep the program strong for this generation and generations to come. We put a heavy emphasis onpreventive health care and better management of beneficiaries with chronic illnesses. That’s muchbetter for Medicare beneficiaries and also costs much less than treating illnesses that go undetected.We need to continue building on the successes of the most significant improvements to Medicarein history by making sure the new law works as Congress intended.”