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Higher Heating and Medicare Costs Will Obliterate COLA
Alexandria, VA (October 17, 2005) - Soaring home heating and Medicare costs will completely obliterate the annual Cost-of-Living Adjustment (COLA) for substantial numbers of retirees, warns a national nonpartisan seniors issues advocacy organization. "The 4.1%[1] COLA is the highest annual increase that seniors have received in 14 years,"[2] notes Ralph McCutchen, Chairman of TREA Senior Citizens League (TSCL). "Yet with home heating costs soaring 50% nationwide[3], and a 13% Medicare Part B premium increase,[4] it's going to be a long, cold winter for most seniors, McCutchen states. "Even seniors with average Social Security benefits may wonder whether to pay the utility bills or to go without food or necessary medications," McCutchen points out. The annual COLA will increase the average $963 Social Security benefit by $39.[5] The Medicare Part B premium, however, is increasing $10.30 per month from $78.20 to $88.50 in 2006. That leaves about $29 a month to cover increased heating costs, and higher Medicare supplement premiums, let alone the costs associated with enrolling in new Medicare prescription drug coverage. "TSCL is particularly concerned that low-income seniors will be put into a dangerous bind because their COLA is not keeping up with costs," says McCutchen. "Our nation has never seen energy prices rise so high or so quickly," he notes. "TSCL urges Congress to substantially boost the federal low income energy assistance program to help seniors pay their high heating bills this winter." TSCL works to protect seniors from higher Medicare costs, and believes that Congress should impose a moratorium on increasing payments to doctors and other providers unless lawmakers also enact measures that prevent Medicare premiums from increasing any more than already estimated. In addition, TSCL is working for legislation that would provide seniors with a more fair and adequate COLA. TSCL endorses "The Consumer Price Index for Elderly Consumers Act," H.R. 3601, introduced in the House by Representative Bernie Sanders (VT), and S. 275 introduced in the Senate by Senator Maria Cantwell (WA). The legislation would require that the annual COLA be computed using the Consumer Price Index for the Elderly (CPI-E). Because seniors spend a greater portion of their incomes on health care services and prescription drugs than younger persons, the CPI-E is considered by advocates to be a more accurate and fair reflection of seniors' costs of living. "Seniors should contact their Members of Congress and ask for their help in making seniors' benefits keep pace with these unsustainable cost increases," McCutchen adds. TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, and other retirement benefits. TSCL members participate in a number of grassroots lobbying and public education campaigns designed to ensure governmental bodies, including the Social Security Administration and the Centers for Medicare and Medicaid Services, live up to their commitments. For more free information on our organization, please contact TREA Senior Citizens League, Department S608A, 909 N. Washington St., Suite 300, Alexandria, VA 22314, or visit our website at: www.tscl.org. [1] Social Security Announces 4.1% Benefit Increase for 2006, SSA, October 14, 2005. Distributed by The Senior Exchange, Inc. October 2005 | ||||||||
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