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  • Chained Consumer Price Index 2

    Although no other generation has yet been affected by a similar Notch, that could change in the future. Congressional inaction on Social Security's long-term financing problems could give birth to a whole new generation of Notch Babies. During recent hearings on the need for making Social Security more sustainable as Baby Boomers near retirement, David Walker, the Comptroller General of the United States, confirmed this saying "Doing nothing means that we are going to head to a precipitous decline in benefits. Remember the Notch Baby problem?" he asked. "This would be a Notch Baby problem magnified multiple times and it should not be allowed to happen." (10) .Sources: "Prescribers With Questionable Patterns In Medicare Part D," Department of Health and Human Services Office of Inspector General, June 201"Medicare Fraud Outrunning Enforcement Efforts," The Center For Public Integrity, July 3, 2013. .If you do not want to receive e-mails from us in the future, please unsubscribe here. … Continued

  • Congressional Corner Lets Agree No Changes To Medicare For Todays Seniors

    In 2018, the Part B premium remained 4 per month. To cover that premium, Barbara, whose Part B premium was 8.00, needed a COLA of at least .00. That was more than the 2% COLA boosted her Social Security benefits. Once again her Part B premium was adjusted and in 2018 she pays a Part B premium of 7.00 per month. In 2019 her COLA will be high enough to catch up to the Part B premium of 5.50 and still leave a small boost for her net Social Security benefits. .How the Coronavirus Pandemic Is Affecting the Finances of Older Households .While you may hear a lot of shouting about the payroll tax cut over the next few months, don't let it distract you from the real threat to Social Security – namely, radical plans to convert Social Security from the current guaranteed retirement benefit for everyone to a risky gamble on Wall Street that would benefit only a select few at best. … Continued

In his opening statement, Subcommittee Chairman Sam Johnson (TX-3) said: "Although Social Security now has modern hardware and modern data centers, its employees are still using software that is decades out of date. About 30 percent of these legacy systems still use COBOL code, an ancient programming language that isn't even taught in schools anymore." He explained that maintaining the outdated system is costly, it requires extra training for employees, and it is difficult to update when needed. .Get an annual check up. Case in point: I recently helped a senior who hadn't seen a doctor in years, despite being a smoker. It took some urging, but she finally got a physical. She was shocked to learn that her blood pressure was high — dangerously so — and wound up driving straight to the pharmacy with a prescription for blood pressure medication. Visits to the doctor are far less expensive when you get there under your own steam rather than via an ambulance gurney. Starting this year, Medicare covers a yearly annual "wellness" exam and you pay nothing, if your doctor "accepts assignment" or the amount Medicare pays for the service. Do this before I have to nag you, too. .The Part A deductible, however, is charged "per spell of illness" and it's feasible that you could have to pay it more than one time in a year should you require multiple hospitalizations the same year. .The Senior Citizens League believes it is time to focus on the adequacy of Social Security benefits to meet rising Medicare costs. COLAs have been insufficient to cover the Part B premium in five out of the past ten years — 2010, 2011, 2016, 2017, and 201This is a clear indication that Social Security COLA is not adequate, and not doing the job it was intended to do. . .The act also recalculates COLAs so future changes would be based on the price of goods and services seniors actually buy, like medications, by using a formula known as Consumer Price Index for the Elderly (CPI-E). Currently, the COLA is based on CPI-W, which evaluates the entire economy, including infant and toddler apparel, nursery care, toys and school fees. .Although the President did not offer specific policy recommendations, he did renew his commitment to lowering prescription drugs costs. He said: "One of my greatest priorities is to reduce the price of prescription drugs. In many other countries, these drugs cost far less than what we pay in the United States. That is why I have directed my Administration to make fixing the injustice of high drug prices one of our top priorities. Prices will come down." .TSCL agrees with Congressman Duncan, and we enthusiastically support the CPI for Seniors Act. In a letter of endorsement, Art Cooper – Chairman of TSCL's Board of Trustees – wrote: "Unfortunately, years of record-low COLAs like this one – including multiple years of zero COLAs – will have a devastating impact on the long-term adequacy of Social Security benefits for more than 59 million beneficiaries … Your bill would go a long way in ensuring the retirement security older Americans have earned and deserve, and we look forward to informing our members and supporters about your efforts on Capitol Hill." .TSCL has received a growing volume of email from seniors who say their new Part D or Medicare Advantage plan isn't all it's cracked up to be. Many of you complain of higher-than-expected costs, and quite a few asked how you could drop your plan. Selecting the right Medicare supplement or Medicare Advantage plan is highly complicated. The system has stymied almost everyone who works with it, Medicare advocates, pharmacists, insurers, and — especially — government employees. How can the average senior be expected to figure it out? .According to an analysis by Johnson, the impact of switching to the more slowly - growing "chained" CPI would compound over time, with the deepest cuts accruing after people had spent 25 or 30 years in retirement. After 25 years, benefits would be cut by about 4.6 percent, and by 5.5 percent after 30 years. For someone with average benefits of ,245 in 2017, benefits would be 0 per month lower from using the chained CPI after 25 years, and 6 per month lower after 30 years, the analysis found.