Many seniors and members of the disability community struggle every day to make ends meet, to pay the mortgage or rent while trying to stretch their budget for other essentials including the medications they need.  I am supporting legislation by Senator Tim Johnson that is aimed at making this struggle a little easier. 

The Social Security COLA Protection Act, S.2501, would protect Social Security COLAs by ensuring that no more than 25 percent of an annual COLA is consumed by increases in Medicare Part B and D premiums.  This would guarantee that seniors and the disabled retain at least 75 percent of the COLA to cover price increases in other goods and services such as food, clothing, housing and energy costs.

Social Security beneficiaries receive a Cost-of-Living Adjustment, or “COLA,” each year.  Medicare Part B premiums generally are deducted directly from Social Security checks.  In 1986, a hold harmless provision took effect to ensure that no beneficiary's Medicare Part B premium increase could exceed his or her Social Security COLA in any given year.  This guaranteed that no senior would experience a decreased Social Security check due to a Part B premium increase.

Now, like Part B premiums, premiums for the prescription drug benefit (Part D) may be deducted from Social Security checks, but the law does not contain any protections for beneficiaries’ Social Security benefits.  Consequently, rising Part D premiums will increasingly consume a larger portion of monthly Social Security benefits, and some beneficiaries will actually experience a cut in their benefits compared to the previous year.

I am pleased that the National Committee to Preserve Social Security and Medicare is endorsing S.2501, and I am proud to be an original cosponsor of this bill.

Sincerely,

Barbara Boxer
United States Senator