By Joanna Bump
Social Security (SS) and Medicare were on the ballot for the 2026 mid-term elections. The depth of the public’s dissatisfaction with affordability was made clear from record numbers of voters that turned out. Fortunately for seniors, many of the people that were elected and reelected to the US. Senate and House are in favor of fully funding SS, Medicare, Medicaid and reducing prescription drug pricing. The senators that won the 2026 mid-term election will serve a six-year term from 2027 to 2033 and will be the ones charged with fixing the SS and Medicare shortfalls. Without funding solutions, an estimated 24 percent cut to monthly SS benefits will go into effect by 2032. These representatives will be the ones deciding the future funding for these essential programs. Their support provides a historic opportunity to strengthen SS, and make senior health care more affordable through Medicare and Medicaid.
The voters desire for health care reform is likely to become more intense, according to a CBS 11-6-26 news article that interviewed Kim Bogan, a nurse who has worked at Sparrow Hospital in Lansing, MI, on how to fix health care. A public option is under consideration as a version of “Medicare for all” that doesn’t fully replace private health insurance, but acts as a guaranteed baseline for government health insurance. The pressure for reform is growing in response to the repeal of the Affordable Care Act premium subsidies that are leading to scheduled rate increases in the double digits next year. In addition, employers are passing on more of the increases in premium costs to workers and cuts to Medicaid are estimated to result in 7.5 million more people uninsured nationwide by 2034.
Can Medicaid cuts be repealed before they are implemented? The Medicaid program is important to retirees, even if they have Medicare Advantage as their primary health insurance. Seniors rely on Medicaid to pay for their nursing home care. In addition, most seniors depend on health care workers to take care of them in nursing homes, assisted living facilities, and in their own homes. These important, but low-wage workers, are likely to receive Medicaid as their health insurance. Without reliable health insurance, these workers can’t afford the medical care they need to keep working when they are sick.
Those U.S. Senate and House Representatives that want to repeal House of Representatives (H.R.) 1 of 2025 and stop the $1 trillion dollars in Medicaid cuts that become effective starting on January 1, 2027, face a timing issue. The Medicaid reductions are scheduled to take effect by law on January 1, 2027. This includes the mandatory 80-hour monthly work requirement that is meant to remove millions from health care coverage in order to free up funds for the permanent tax cut for the wealthy. However, the new U.S. Congress will not be seated and able to vote until January 3, 2027. As a result, the Medicaid cuts will go into effect before the repeal can be voted on.
Presidential Veto. The federal administration has made significant cuts to health care through H.R. 1 of 2025 and on-going administrative reductions. The federal administration will continue to have veto power over the next two years to oppose legislation to restore cuts that are already made. The federal administration is likely to veto the repeal of Medicaid cuts, say health policy experts like the Kaiser Family Foundation (KFF). According to the U.S. Constitution, Article I, Section 7, the U.S. Congress has the legal authority to pass legislation to repeal the H.R. 1 of 2025 Medicaid cuts, and override a presidential veto. However, this would require a two-thirds supermajority vote in both the House and the Senate.
Bipartisan support required. The Constitution requires that Congress get 290 votes in the House and 67 votes in the Senate to override a veto from the President (The New Republic 11-5-26). Bipartisan cooperation in both chambers would be needed to achieve the number of votes to override the veto, and obtain the two-thirds supermajority required. The majority party does not have enough votes to successfully override the veto on their own. The majority party is estimated to hold at least 54 Senate seats and between 253 to 260 House seats (The New Republic 11-5-26).
Great Long-Term Returns. The State of Michigan Investment Board (SMIB) met for its most recent quarterly review on September 23, 2026. The review compared the State of Michigan Retirement System (SMRS) cumulative total fund returns for the years ending June 30, 2026. The Michigan State Employee Retirement System (SERS) is part of the overall SMRS. “Mr. Braeutigam, Chief Investment Officer, Bureau of Investments, reviewed SMRS performance stating the one-year period annualized return, ending March 31, 2026, is 13.2% which is good. The 3, 5, 7, and 10 year are above and beyond what the peer returns are.” The State Street Universe of Public Funds, greater than $10 billion, is an institutional performance benchmark. This trend illustrates “great long-term returns,” according to the SMIB Executive Summary, 9-23-26. See the “SMRS” chart below on performance highlighting the positive impact on State of Michigan pension fund, rate of returns, and the Michigan state budget.
Robert Brackenbury, Deputy CIO, has retired according to the SMIB minutes for June 26, 2026. Over the years, SERA members have appreciated Mr. Brackenbury’s presentations of the annual investment report, providing our members with valuable insights into the State of Michigan defined benefit pension plan. After retiring, he was appointed to the Athene Board of Directors, which manages a leading retirement services and insurance company. Jim Belardi, Co-Founder, Executive Chairman, and Chief Investment Officer of Athene said, “Robert’s distinguished career managing one of the largest public pension systems in the United States has given him exceptional insight into the elements that make guaranteed income possible. His experience managing retirement assets, navigating complex investment environments and serving the long-term interests of retirees will be a valuable addition to Athene’s Board as we continue developing innovative retirement solutions for individuals and institutions globally.”
Joanne Bump serves as feature columnist for “Retirement Matters.” Column content is time sensitive and is based on information as of 11/8/26. Sources are primarily from non-profit, and government policy research organizations. Joanne can be contacted by e-mail at joannebump@gmail.com.