A Hit in Seniors' Pocketbooks

Wednesday, September 2, 2009
Chuck Blahous's framing of the COLA conversation was a few ticks off the mark ["What Drop in Benefits?," op-ed, Aug. 24]. It is not a flap or a controversy. It is simply an unprecedented event in the history of Social Security cost-of-living adjustments.
The fact is that 2010 will mark the first year since COLA increases became indexed in 1975 that there will be no increase. For millions of older Americans, this means that Social Security checks will be smaller for the first time, since Medicare Part D premium increases are not "held harmless" and will be deducted from the checks. That amounts to bad news in the mail every month.
What's more, health-care costs -- not just insurance premiums but also co-pays and prescription drug costs -- continue to outpace inflation, rising at a clip of 8 percent a year. Fully 30 percent of the average Medicare beneficiary's income goes to health care. This plus a lighter Social Security check will undoubtedly squeeze older Americans.
The bigger picture is that retirees who worked and saved a lifetime are staring at a triple setback: asset losses, diminished home values and rising health-care costs. This is why AARP has reached out to Congress to explore possible solutions to the economic hardship seniors face.
DAVID CERTNER - From washingtonpost.com
Legal Counsel & Legislative Policy Director
---http://davidsradiotv2000.blogspot.com/