What to Know for Thursday, July 23rd, 2026: |
1: Larson-Blumenthal Social Security 2100 Act eliminates payroll tax cap, adds investment income tax on wealthy — increases benefits, extends solvency to 2100 |
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(Image Credit: CT News Junkie) |
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Legislation increases benefits for current and new beneficiaries by eliminating $184,500 Social Security tax cap — adds new tax on investment income for taxpayers earning 400K+: Makes wealthy pay fair share to shore up system — revenue generated extends solvency throughout 21st century avoiding 2032 trust fund depletion — Larson: "benefit cuts are not the answer...wealthy must pay fair share" — targets 4 out of 5 seniors who rely on SS as primary retirement income. Improves cost-of-living adjustment (COLA) calculation using CPI-E reflecting true senior expenses instead of CPI-W — implements stronger minimum benefit preventing lifetime workers from retiring into poverty: New COLA better accounts for healthcare, prescription drugs, other costs seniors actually face — minimum benefit ensures workers with full career won't fall below poverty line — addresses specific concern that current system disadvantages low-wage workers over lifetime. Protects SSA from Trump administration attacks — blocks field office closures, undoes staffing cuts, prevents DOGE/political appointees from accessing sensitive data systems: Responds to 7,000+ SSA job losses, field office reductions, service delays under Trump — prevents future administration efforts to weaken agency — bill cosponsored by Senators Slotkin (D-MI), Luján (D-NM), Whitehouse (D-RI), Duckworth (D-IL) — legislation builds coalition with courage to expand rather than cut benefits.
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➜ Read the full press release from John Larson here. |
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2: Fidelity: 2026 retirees face $185,500 lifetime healthcare costs (+7.5%) — couples need $371,000; most don't expect bills |
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(Image Credit: Getty Images) |
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65-year-old retiring in 2026 should budget average $185,500 for health/medical expenses throughout retirement, up 7.5% from 2025 — couples need $371,000: Fidelity's 25th annual estimate shows accelerating costs driven by rising treatment prices, higher chronic condition expenses, increased care utilization — trending worse: 7.5% increase follows 5% last year and 4% in 2024 — estimate assumes traditional Medicare (Parts A, B, D coverage) but doesn't include long-term care costs. 54% of pre-retirees incorrectly expect Medicare covers all healthcare expenses — major planning gap: Fidelity estimate breakdown: 48% costs from Medicare cost-sharing (copays, coinsurance, deductibles), 45% from monthly Part B/D premiums, 7% out-of-pocket drug expenses — Helen Lloyd-Williams (Fidelity VP): education critical "for people who may not have thought how they'll pay for healthcare in retirement." HealthView analysis shows couples need 84% of lifetime Social Security benefits just for healthcare; younger couples need 104-129% of expected SS benefits: Healthcare inflation running 5.8% annually far outpacing typical Social Security COLA increases (estimated 3.8% for 2027) — Medicare reimbursements declining, threatening beneficiary access to care per Boston College research — critical to incorporate healthcare costs into retirement income planning beyond just reaching savings target.
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➜ Read the full article from CNBC here. |
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3: Medicare payment revamp would boost primary care, cut specialist reimbursements up to 1.68% in 2027 — shifts dollars from procedures to prevention |
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(Image Credit: Axios) |
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Trump administration proposes increasing Medicare payments for geriatricians, internists, primary care doctors while cutting dermatologists, orthopedic surgeons, other specialists: Policy aims to redistribute Medicare dollars away from procedure-heavy specialties toward primary/preventive care historically underfunded — all physicians face up to 1.68% overall Medicare cut in 2027 (doesn't account for medical cost inflation) — higher primary care pay could recruit more physicians to field, close care gaps in underserved communities. Proposal reduces same-day billing for procedure + office visit — more expensive service paid in full, less expensive reimbursed at 50%: First Trump administration proposed similar policy in 2019 but backed off after physician pushback — payment rule also makes technical change to medical practice expense calculations potentially curbing specialist payments — American Academy of Family Physicians supports plan to "strengthen primary care by reducing barriers and improving payment." Administration challenges AMA's decades-old physician payment committee influence — bipartisan interest in moving away from AMA system though no consensus on replacement: Critics say AMA committee overvalues surgeries/costly procedures compared to primary care — AMA argues it has recommended new billing codes, payment increases for primary care over years — Congress typically blocks scheduled physician cuts year-end but never guaranteed — unlikely Congress/White House reach agreement on payment system overhaul until 2028 per analyst forecast.
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➜ Read the full article from Axios here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Thursday, July 23rd. |
This Tax Deduction for Seniors Disappears in 2028—Are You Using It? |
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This Tax Deduction for Seniors Disappears in 2028—Are You Using It? |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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