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Insider’s Report: Big Social Security COLA Increase Is on the Way
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Seniors have received some good news in recent days …
Last week, it was announced that the 2023 Social Security Cost-of-Living Adjustment (COLA) will be 8.7%. And next year’s Medicare Part B premiums will drop by about 3%, which will lower the standard Part B monthly premium by $5.20 to $164.90. The decrease in Part B premiums is linked to the costly and troublesome Alzheimer's drug Aduhelm. Medicare ultimately restricted this drug’s use and ended up paying less for the drug than it expected to this year.
This year’s soaring inflation rate has pushed the 2023 COLA higher than we’ve seen in 41 years. Yet, it doesn’t make up for decades of record low or zero COLAs which have continued to erode seniors’ purchasing power.
Even though seniors received a 5.9% COLA in 2022, many seniors have been forced to scale back or simply forgo essential goods and services because their monthly benefit check does not stretch far enough.
The health and financial security of millions of Americans depends so much on getting an adequate COLA every year. Yet, the current COLA formula fails to consider that seniors must spend a significantly larger share of their income on health care and housing expenses.
In fact, for years older Americans have endured a declining standard of living due to a deeply flawed COLA. Social Security is basing “raises” off the spending habits of working-age urban and clerical workers — not off of the very different spending patterns of seniors who are actually receiving Social Security benefits!
That’s why the National Committee is calling on lawmakers to pass the “Fair COLA for Seniors Act of 2021” H.R. 4315, that adopts the Consumer Price Index for the Elderly (CPI-E), which measures inflation on the goods and services that seniors actually rely on — especially health care, groceries and housing. It’s also why we support U.S. Representative John Larson’s (CT-01) “Social Security 2100: A Sacred Trust Act” H.R. 5723 to boost Social Security benefits and require the wealthiest Americans to pay their fair share into the program.
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| Good Bills |
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The National Committee endorses the “Fair COLA for Seniors Act” H.R. 4315, introduced in the House by U.S. Representative John Garamendi (CA-03). This bill would use of the Consumer Price Index for the Elderly (CPI-E) for the purpose of determining Social Security Cost-of-Living Adjustments (COLAs). Using the CPI-E will ensure that benefits for retirees are not diminished by rising costs in the goods and services that seniors disproportionately consume.
Current measures of inflation fall short in that they do not adequately take into account the rising costs incurred by retirees in consumer categories such as housing and health care. This bill represents a bold step on behalf of seniors by safeguarding the future value of federal retirement benefits.
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| Ask Web |
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Our resident Social Security expert, Webster Phillips — a Senior Policy Analyst for the National Committee and a 31-year veteran at the Social Security Administration — is here to answer your questions about Social Security.
You can either search our archives for valuable advice on a broad range of concerns or submit your question here.
This week's question is: When I receive my annual Social Security Statement showing the benefit I am eligible for at various ages, does this amount include my wife’s spousal benefit? If not, how can I determine what it is? And what impact does her age have on the benefit? Since she is 3 years younger than me, I’m assuming her spousal benefit will not begin until she reaches eligibility age.
Click here to read the answer.
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| Take Our Poll |
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Do you believe next year’s 8.7% Social Security COLA is adequate to cover the rising cost of your housing, food, gas and out-of-pocket health care expenses?
Take our poll now!
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Ask Web
Whether you’re currently retired or approaching retirement, we can help answer your questions and provide valuable advice on Social Security. |
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Join Now
Your support sustains our campaigns in Washington to protect and strengthen Social Security and Medicare. |
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Aging, Health and Care
Find useful resources on everything from caregiving and hearing care to long-term care and transportation. |
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| Congress Gives SSA Enough Funding to Tread Water |
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Congress passed a continuing resolution Friday to keep the government funded until December 16th. It contains additional money for the beleaguered Social Security Administration, which services the 66 million Americans receiving Social Security and people applying for benefits.(September 30, 2022, www.ncpssm.org, Entitled to Know blog)
Read More →
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| Senate Democrats Vow to Protect Social Security, Press Biden to Fill Commissioner Seat |
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Senate Democrats recently affirmed their commitment to protect and expand Social Security and are pressing President Joe Biden to fill the commissioner and deputy commissioner seats at the Social Security Administration — which have been open for more than a year. Sen. Sherrod Brown's resolution is supported by the National Committee to Preserve Social Security and Medicare. (October 4, 2022, Think Advisor, Melanie Waddell)
Read More →
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| Exercise caution with zero-premium Medicare Advantage plans |
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Health insurers will flood the Medicare Advantage market again this fall with enticing offers for plans that have no monthly price tag. The number of so-called zero-premium plans has been growing for years, and they can appeal to retirees who live on fixed incomes. Experts say shoppers should exercise caution, because they might find better coverage at a relatively small monthly cost. (October 5, 2022, ABC News, Tom Murphy)
Read More →
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| Medicare Part B premiums to decrease for the first time in over a decade |
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The Biden administration on Tuesday announced that Medicare Part B premiums will decrease in 2023, marking the first time this cost has been lowered in more than a decade. The Centers for Medicare & Medicaid Services (CMS) announced that Medicare Part B premiums would be lowered by three percent, or $5.20. (September 27, 2022, The Hill, Joseph Choi)
Read More →
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| Healthcare’s Big Bite Out of Retiree Budgets |
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According to a new analysis, typical retirees had 88% of their total income left to buy everything else after paying for medical care. And one in 10 retirees with inordinately large health care costs had 63% or less left over for living expenses. (September 29, 2022, Center for Retirement Research at Boston College, Squared Away Blog)
Read More →
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