News

  • 2016 Congressional Corner Government Needs A New Approach For Determining Colas

    "Higher gasoline and transportation prices in particular are behind the high COLA estimate for 2022, because those expenditures are given greater weight or importance in the consumer price index (CPI) that's used to calculate the COLA. That works to the advantage of retired and disabled beneficiaries for the COLA payable in January of 202That has not been the case for many of the past 12 years when cheap gasoline, and other falling prices dragged down the COLA. Since 2010, COLAs have averaged just 1.4%. Inflation was so low that no COLA was payable at all in 2010, 2011, and 201In 2017 the COLA was almost zero, just 0.3 percentage point. .About one in five older and disabled Medicare beneficiaries has income so low that their state Medicaid programs pay some or most of their Medicare costs. That includes Medicare Part B premiums and out-of-pocket costs, as well as services that aren't covered by Medicare, such as vision, dental and nursing home care. .Bottom line: Everyone in 2017 is expected to pay more for their Medicare Part B premiums. Any increase in benefits due to the COLA will be completely eaten up by the expected increase in Medicare Part B premiums. Nevertheless, for the majority of beneficiaries, the rising Part B premiums, at least, will not reduce benefits — but hold harmless protection only applies to Part B premiums. Any increase in the premiums of Medigap supplements, Part D, or Medicare Advantage plans would reduce one's Social Security income. In November, beneficiaries will be receiving notification through the mail of what they will pay for Medicare Part B in 2017. … Continued

  • H R 46 Social Security Safety Dividend Act

    The Senior Citizens League thanks Senator Sanders and Representative Larson for their leadership on this important issue, and we look forward to working with their offices in the months ahead to help build support for their bill. For more information about the Social Security Administration Fairness Act, visit the Bill Tracking section of our website. For progress updates, follow TSCL on Twitter. .A study by the Health Care Cost Institute found that people receiving observation and other outpatient services in the hospital paid four times more out-of-pocket than inpatients in 2012— an average of per inpatient versus 9 for outpatients. Under Medicare, outpatients usually have co-payments or co-insurance for each service from doctors, test, prescription drug, and other hospital services. .By Jessie Gibbons, Legislative Analyst … Continued

This week, one new cosponsor – Rep. Robert Scott (VA-3) – signed on to Rep. Peter DeFazio's (OR-4) Consumer Price Index for Elderly Consumers (CPI-E) Act (H.R. 1030). The cosponsor total is now up to ten. If signed into law, Rep. DeFazio's bill would base the Social Security COLA upon the spending patterns of seniors. Currently, it is based upon the way young, urban workers spend their money – a method that underestimates the spending inflation that seniors experience. A study conducted by TSCL in 2012 found that seniors have lost 34 percent of their purchasing power since 2000 – a clear sign that the current COLA is growing too slowly. .Require Medicare beneficiaries to pay a higher portion of the Part B premium. Premiums for Part B cover physician and hospital outpatient services. The premiums of most seniors, those with incomes under ,000, equal 25 percent of Medicare's total cost of services, and the federal government covers the other 75 percent of the cost. This proposal would require seniors to pay 35 percent instead - like higher-income seniors do now. The 2010 Medicare Trustee report estimates that Part B premiums at the 35% level would be 9.30 per month in 2012. .Tax legislation enacted at the end of last year makes significant changes that touch virtually all taxpayers. While most of the new provisions have consequences for the 2018 tax year and thereafter, there are at least a few things that pertain to the 2017 tax returns of older taxpayers. (Remember, as always, nothing in this newsletter constitutes legal or tax advice. Please consult tax advisors with your tax questions and for assistance in making decisions.) .The CBO also notes that increasing the payroll tax rate or subjecting more earnings to the payroll tax could improve Social Security's financing. .You may qualify if your yearly income and "resources" or savings are below the following limits in 2017: .The Finance Committee members spent much of Tuesday's hearing debating the primary motivators of rising healthcare costs, especially growing premiums in the individual market. Many on the committee seemed convinced that the ACA is to blame, while others said the Trump Administration is responsible. .Can You Tell Me How Recent Law Changes Affect RMDs From My 401(k)? .On Thursday, TSCL held its first ever town hall meeting with great success in North Carolina's 11th Congressional District. TSCL would like to thank Congressional Candidate Mark Meadows for taking time out of his busy schedule to address concerned members and supporters. .In addition, one new cosponsor signed on to the Preventing and Reducing Improper Medicare and Medicaid Expenditures (PRIME) Act (H.R. 2305). The new cosponsor is Rep. Tim Walberg (MI-7), and the total now sits at sixty-six. If signed into law, the PRIME Act would take a number of steps to comprehensively prevent fraud, waste, and abuse within the two programs – a problem that TSCL believes must be addressed in order to ensure that scarce program dollars are being spent properly.