HACKETTSTOWN, N.J., June 1 -- Rep. Josh Gottheimer, D-N.J., issued the following news release:

Today, Congressman Josh Gottheimer (NJ-5) visited the House of the Good Shepherd Retirement Community in Hackettstown and spoke with seniors there about retirement security. They discussed the impact that Medicare and Medicaid privatization as well as the AHCA and Administration's recently proposed budget would have on seniors and their families.

"Our nation made an intergenerational promise to our seniors. I take that promise and that obligation very seriously," said Congressman Josh Gottheimer. "We need to make smart decisions now to make the country a better place for future generations, but the answer isn't to leave seniors in the street. We need to sound the alarm on those who are trying to guy the retirement security that seniors and their families depend on."

Video of this event is available HERE (https://www.facebook.com/RepJoshG/videos/456822151322524/) and a photo from the event is below.

It's good to be here at the House of the Good Shepherd, a pillar of our community, serving the community for more than 125 years.

And this House here in Hackettstown has served seniors since 1965, providing not just a place to live, but enrichment, fellowship, and medical care - in fact, 1965 was also the year they signed Medicare into law.

Speaking of fellowship, I've been in Congress now for five months, and have a few observations to share from my experience so far.

First, despite what you may see on TV, there are plenty of people there who genuinely want to work together, but it takes real effort to do so. I've found that if you make the effort to work across the aisle, people are generally willing to join you.

Second, while America is divided along party lines, we must figure out common sense solutions. We have real challenges in NJ - it's expensive to live here, we need more jobs, our infrastructure is crumbling.

Good ideas don't come with party labels. That's why I am proud to serve as the co chair of the bipartisan Problem Solvers Caucus, a group of Republicans and Democrats who are working to find common ground on issues like cutting taxes and fixing our crumbling roads and bridges.

Third, we need more governing from the pragmatic middle and less extremism in Washington. I'm a pro-business moderate; I want lower taxes and less regulations. I want to do more for vets, infrastructure, and law enforcement.

I'm also someone who believes if you can get 80 percent of what you want to move an important priority forward, you're better off than if you insisted on 100 percent and end up getting nothing. We have real challenges and we can't just obstruct and refuse to work together.

One significant challenge I'm here to talk about today are those facing our seniors.

As you all know, more than half a century ago, our nation made an intergenerational promise to our seniors--a promise that we will have access to the health care we need in our golden years.

I take that promise and that obligation very seriously.

First, Medicare, which was signed into law in 1965, the same year this building started serving seniors.

In Independence, Missouri, President Truman said Medicare put this "nation where it should be. To be right."

Our seniors pay into Medicare through a lifetime of hard work and deserve the security of knowing they will be able to access healthcare when they need to.

We can't go back to a time when an illness or injury meant bankruptcy or death for retirees.

But some people want to go back on their word and privatize Medicare, risking higher costs for nearly 60 million Americans. Not on my watch. My mom would never let me home to the dinner table again.

By handing out coupons for coverage, these reckless politicians would be increasing out of pocket costs for seniors by an estimated $6,000 annually.

For many on a fixed income, that additional $6,000 in out of pocket costs each year would cause a big problem for their budgets, forcing them to choose between a meal and their medicine. Some wouldn't be able to afford health care at all.

I won't allow that bond to be broken. I will stand up to anyone who tries to ram through their extremist agenda on the backs of seniors.

Because here's what this would mean for seniors here in New Jersey.

1.3 million New Jersey seniors rely on Medicare for their healthcare. And another 1.9 million people here in New Jersey are scheduled to enter the program in the next 15 years. That's 3.2 million people over the age of 50 who have paid into Medicare through a lifetime of hard work. To put it another way, that's about a third of our population who could be left in the cold.

By privatizing Medicare, seniors would lose the fundamental guarantee of insurance coverage, and out of pocket costs would skyrocket for some.

Because if the value of the voucher you receive turns out to be insufficient to cover your care, you're out of luck. Your out of pocket costs will be higher-and that's on a fixed income.

A 2012 study found that nearly 60% of all Medicare recipients would be forced to pay higher premiums if the program is privatized.

Second, I voted against the reckless health care bill that recently passed House of Representatives. Three out of the five Republicans in our congressional delegation voted against it, too. I'll be the first to say the ACA is far from perfect, and I am open to common-sense fixes.

But the bill I voted against last month would have shifted costs onto the State of New Jersey in a major way, requiring a new state tax to the tune of $4,000 a family.

It would also make it impossible for people with pre-existing conditions to get health care coverage they can afford in some states.

Additionally, one in five Medicare enrollees fell into the donut hole gap in 2009, before the Affordable Care Act went into effect, costing them big in prescription drug costs. They are now saving $15 billion a year.

Closing the Part D Donut hole has already made a real difference in pocketbooks of seniors across New Jersey. And the savings will continue to grow as we get closer to 2020 when the hole will be entirely closed.

But should the ACA be repealed without a plan to replace it, those costs will jump right back up. According to one study by the Center for Medicare and Medicaid Services, the average senior would lose almost $2,000 in savings each year.

Earlier this year, I sent a letter to Congressional leadership, telling them not to reopen this donut hole work on health care reform. Seniors would be crushed by additional drug costs and experience extreme economic hardship.

But it's not just prescription drug costs that are at risk of increasing dramatically during this reform process.

The misguided health care bill that recently passed the House includes a "Senior Tax" that would make those over 50 pay 5 times or more for their health care, bankrupting many older Americans by the time they're eligible for Medicare.

New analysis by the Congressional Budget Office found that for a 64-year-old earning $25,000 a year, their annual premiums would go up by $13,600.

I don't know about you, but I don't know many 64 year olds on fixed incomes who can afford $13,600 in new health care costs each year.

In fact, I got a letter from a woman in Franklin a few weeks ago who told me, "I as well as most of my community are senior citizens living month to month on a small Social Security check. Some among us are very ill and have a lot of medical bills. One across the street and one beside me have very bad diabetes. I myself have several health problems and take a lot of medicine every day in order to get out of bed and function. I live alone so without this medicine I would die."

I think of all the people like this woman who would be adversely impacted by this health care plan and know I have to keep speaking out on their behalf.

Next, this bill would also radically change Medicaid, a needed lifeline that millions of seniors and people with disabilities rely on to be able to access long term care.

200,000 Medicare beneficiaries in our state rely on Medicaid for services not covered by Medicare, like long term care.

In fact, 3 out of 5 New Jersey long-term care residents in nursing homes are covered by Medicaid.

This bill could lead to seniors being thrown out of their nursing homes.

Fourth, I'm concerned about aspects of the administration's budget that was proposed last week. There is bipartisan concern in our delegation.

It would slash an additional $600 billion from Medicaid, further undermining seniors' access to long-term care.

And this same plan also included steep cuts to the National Institutes of Health and the National Institute on Aging, harming research into cancer, Alzheimer's, Parkinson's and other diseases affecting seniors.

Not only do these programs have a proven track record helping the private sector discover cures, they're providing hope for the millions of individuals and their families affected by these devastating diseases.

So, that's why I'm here today. I'm for fiscal responsibility, getting our spending under control, and dealing with our taxes which are holding us back. We need to make smart decisions now to make the country a better place for future generations. But the answer isn't to leave seniors in the street.

We need to sound the alarm on those who are trying to gut the retirement security that seniors and their families depend on.

My approach to governing is about solving problems--not creating unnecessary chaos and hardship for older Americans. As I've long said, I will work with anyone, regardless of political party, to improve health care affordability and accessibility for seniors and everyone else.

So, in closing, I'd want to reiterate to the folks here today that my job is solving problems for you. Whether that's solving problems like helping make sure we keep prescription drug costs down, protect Medicare from privatization and cuts or cutting through red tape to help you resolve an issue with the VA or Social Security Administration, I am here for you.

For the rest of the program time here, I'd like to come around and talk to you about your concerns and see what problems my team and I may be able to solve for you.

Thank you.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of the property/casualty subsidiaries and affiliated insurance companies of Kemper Corporation (Kemper) [NYSE: KMPR], collectively referred to as Kemper Property & Casualty Group (Kemper P&C or the group). AM Best also has revised the outlooks to negative from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Kemper’s life subsidiaries, collectively referred to as Kemper Life Group (Kemper Life) (Chicago, IL). Concurrently, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of “bbb-” (Good), the Long-Term Issue Credit Ratings (Long-Term IRs) and indicative Long-Term IRs of Kemper, the ultimate parent, headquartered in Chicago, IL. (See below for further discussion and a detailed listing of all companies and Credit Ratings [ratings].)

Lastly, AM Best has withdrawn the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Kemper Financial Indemnity Company (KFIC) (Chicago, IL), each with a stable outlook. KFIC was previously a subsidiary of Kemper and was sold on Sept. 1, 2026.

The ratings of Kemper P&C reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The negative outlooks reflect Kemper P&C’s earnings deterioration through late 2025 and early 2026, driven by the group’s concentrated business profile and exposure to the California auto insurance market. Furthermore, the negative outlooks account for California’s challenging regulatory environment, which may prolong the group’s ability to achieve rate adequacy and improve operating results. Results have been impacted by California’s increase in auto insurance liability limits in early 2025, which doubled bodily injury coverage minimums and tripled property damage limits. As the group’s business is primarily non-standard auto, a majority of its policyholders hold coverage at the minimum limits. As a result, Kemper P&C has experienced elevated claim severity due to the increase in limits and an increase in attorney attachment. AM Best notes there has been sequential improvement in underwriting results through the first half of 2026 but such results remain unprofitable. At the parent level, Kemper has experienced an increase in financial leverage, primarily as a result of a decline in shareholders equity. As of June 30, 2026, adjusted financial leverage (which considers equity credit for hybrid securities issued), stood at 28.6%, per AM Best’s calculation. In addition to underwriting losses, Kemper was impacted by a non-cash goodwill impairment and reciprocal surplus note credit loss allowance in the second quarter of 2026.

Management continues to implement strategic initiatives to correct performance. Kemper P&C has been pursuing rate adequacy actively through approved and pending California personal auto rate increases. The company had a 6.9% rate increase approved with an effective date in April 2026 and an additional 3.0% rate increase approved with an effective date in June 2026. As these rate increases continue to be filed and approved, AM Best expects a gradual improvement in performance.

The ratings of Kemper Life reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, appropriate ERM, as well as consideration of the group’s affiliation with lead rating unit, Kemper P&C. The negative outlooks for Kemper Life reflect the overall negative outlooks for Kemper and its insurance subsidiaries.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with the outlooks revised to negative from stable for the members of Kemper Property & Casualty Group:

• Trinity Universal Insurance Company
• Alpha Property & Casualty Insurance Company
• Capitol County Mutual Fire Insurance Company
• Charter Indemnity Company
• Financial Indemnity Company
• Infinity Insurance Company
• Infinity Assurance Insurance Company
• Infinity Auto Insurance Company
• Infinity Casualty Insurance Company
• Infinity Indemnity Insurance Company
• Infinity Safeguard Insurance Company
• Infinity Select Insurance Company
• Infinity Standard Insurance Company
• Infinity County Mutual Insurance Company
• Kemper Independence Insurance Company
• Merastar Insurance Company
• Mutual Savings Fire Insurance Company
• Old Reliable Casualty Company
• Response Insurance Company
• Response Worldwide Direct Auto Insurance Company
• Response Worldwide Insurance Company
• Union National Fire Insurance Company
• United Casualty Insurance Company of America
• Unitrin Advantage Insurance Company
• Unitrin Auto and Home Insurance Company
• Unitrin County Mutual Insurance Company
• Unitrin Direct Insurance Company
• Unitrin Direct Property & Casualty Company
• Unitrin Preferred Insurance Company
• Unitrin Safeguard Insurance Company
• Valley Property & Casualty Insurance Company
• Warner Insurance Company

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with the outlooks revised to negative from stable for the members of Kemper Life Group:

• United Insurance Company of America
• Mutual Savings Life Insurance Company
• The Reliable Life Insurance Company
• Union National Life Insurance Company

The following Long-Term IRs have been affirmed with the outlooks revised to negative from stable:

Kemper Corporation—

-- “bbb-” (Good) on $400 million 2.4% senior unsecured notes, due 2030
-- “bbb-” (Good) on $400 million 3.8% senior unsecured notes, due 2032
-- “bb” (Fair) on $150 million junior subordinated debentures, due 2062

The following indicative Long-Term IRs under the shelf registration have been affirmed with the outlooks revised to negative from stable for the shelf registration:

Kemper Corporation—

-- “bbb-” (Good) on senior unsecured debt
-- “bb+” (Fair) on subordinated debt
-- “bb” (Fair) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260911885899/en/

Cristian Sieira, CFA, CPCU
Senior Financial Analyst
+1 908 882 2315
[email protected]

Alan Murray
Director
+1 908 882 2195
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

Source: A.M. Best Rating Services, Inc.