News

  • Q A July August 2019

    Alexandria, VHow much will the Social Security cost – of – living adjustment (COLA) boost your benefits? "Probably not enough to prevent a loss of benefit buying power," says Ed Cates, Chairman of The Senior Citizens League (TSCL). The Social Security Administration recently announced that beneficiaries would receive a 1.7 percent COLA effective January 2015, making the sixth consecutive year of exceptionally low growth in benefits. With the average Social Security payment hovering around ,200 per month, the COLA would boost benefits by around .00. .Johnson says that the federal government is looking at the wrong market basket to determine the annual change in prices in the goods and services used by retired and disabled Americans. According to Johnson, had the government used a more appropriate inflation index that measures costs experienced by people age 62 and older, the Consumer Price Index for the Elderly (CPI-E), retirees would get a COLA of 2.1 percent instead of 0.3 percent in 201"But instead, the COLA is based on the increased price of goods normally purchased by younger working adults," she notes. .In exchange, annuities pay you a monthly income for the rest of your life, an income that can last 20 or 30 years. There are joint and survivor type annuities that continue the monthly income to your spouse after your death, and you can also buy annuities that have a 3 percent annual cost-of-living adjustment. … Continued

  • Congressional Corner 3

    On Monday, Representatives Peter Roskam (IL-6) and John Carney (DE) re-introduced the bipartisan Preventing and Reducing Improper Medicare and Medicaid Expenditures (PRIME) Act (H.R. 818) with the support of twenty-three original cosponsors. If signed into law, the bill would combat fraud, waste, and abuse within the two programs. .Sources: "Cost, Logistics Of Obama Immigration Plan Raise Concerns Before Launch," Doug McKelway, Fox News, February 13, 201Testimony of Eileen O'Connor, Esq., Before The Senate Committee On Homeland Security And Government Affairs, February 4, 201"How Changes In Immigration Policy Might Affect The Federal Budget," The Congressional Budget Office, January 2015. .Things could get worse for older households. Some economists and policy makers worry that the new economic stimulus will cause consumer prices to spiral. Consumer price index data through February showed a big jump in some prices and suggests that the next Social Security COLA may in fact be much higher — the highest since 2019 when the COLA was 2.8%. "But right now, those higher prices erode the buying power of Social Security benefits," says Johnson who studies the impact that rising prices have on the purchasing power of Social Security recipients. According to research by Johnson, from January of 2000 to January of 2020, Social Security benefits have already lost 30 percent of buying power. … Continued

As a result, experts have been saying that even people who have been vaccinated should continue to wear masks and keep their distance from others. .Extremely low cost-of-living adjustments (COLAs) not only affect Social Security benefits, the 0.3% COLA also affects the amount of Medicare Part B premium people will pay in 201When no, or a very low, COLA occurs, a provision of law known as "hold harmless" is triggered. Under the provision, when an individual's Social Security COLA is insufficient to cover the increase in the individual's Medicare Part B premium, the Part B premium is adjusted so that the Social Security benefit isn't reduced from one year to the next. .MA enrollees could be impacted by the ACA's cuts in other ways, as well. They could begin to see higher premiums, deductibles, or co-pays in the coming years. They could also see reduced supplemental benefits like vision or dental coverage. According to another expert witness at the House Ways and Means Health Subcommittee hearing – Robert Book of the Health Systems Innovation Network – by 2015, MA beneficiaries will see an average reduction of ,530 in benefits due to the reduced funding from the federal government, and in 2017 that number will grow to an astounding ,700. .The Senior Citizens League is conducting an online survey of healthcare costs experienced by Medicare beneficiaries and invites seniors and the disabled with Medicare to participate at . The information will be used to educate both lawmakers in Congress and the public about the financial challenges of keeping Medicare affordable for beneficiaries while ensuring program financing remains sound for the future. To learn more about changes to Medicare, get tips on reducing your Medicare costs and to participate in TSCL's new online Medicare healthcare cost survey visit: . .I read that the Medicare Part D doughnut hole is closing. What does that mean? I recently started on Lantus insulin, which my drug plan covers, but with the other drugs I take, I expect to hit the doughnut hole with my April refill. .This week, after months of discussions, leaders in the majority party revealed legislation to replace the Affordable Care Act. In addition, in a Wednesday meeting with President Donald Trump, two lawmakers proposed a plan to reduce prescription drug costs for Medicare beneficiaries. .The inspector general has recommended that the IRS should require ITIN filers claiming the Additional Child Tax Credits to provide documentation that their dependents meet the qualifications for the credit, including residency. The IRS disputes this, saying that it doesn't have the legal authority to verify and disallow the child tax credits. .As you know, the medical expense deduction is essential for older Americans who disproportionately experience high medical costs for prescription drugs, medical equipment, or services like nursing home care. Around 5 million taxpayers, most of whom are over the age of sixty-five, rely upon the tax deduction when their out-of-pocket medical costs total more than 10 percent of their annual income. .The Senior Citizens League enthusiastically supports the Audiology Patient Choice Act and the Social Security Fairness Act, and we were pleased to see support grow for them this week. For more information about these and other TSCL-backed bills, visit the Bill Tracking section of our website.