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    FOR IMMEDIATE RELEASE:
    October 7, 2004

    “The largest-dollar Medicare Part B premium increase in history is headed straight for seniors’ pocketbooks on January 1st . Average retirees will be surprised to learn that nearly half their COLA could be eaten up by the rising premium.” - - Barbara B. Kennelly

    CONTACT:
     Pamela Causey 202-216-8378/202-236-2123
    Ouida Williams 202-216-8405

    Statement From Barbara B. Kennelly On New Analysis Of Impact Of Medicare Premium Hike On Cost Of Living Adjustment For Social Security Beneficiaries

    The Joint Economic Committee (JEC) Democrats have issued a report showing, state-by state, the impact of the Medicare premium hike on the COLA in 2005. Rising health care costs during the last four years have driven up the Medicare Part B premium which is deducted directly from retirees’ Social Security checks. The JEC report concludes that next year’s record-breaking 17.4 percent premium increase will eat up 40 to 50 percent of the average retiree’s COLA.

    In Florida, with nearly 3 million elderly, the average beneficiary stands to lose 47 percent of his or her 2005 COLA to higher premiums. The percentage bite from the average Social Security check in other states with a large number of seniors includes 48 percent of the COLA for Texas beneficiaries and 45 percent of the COLA for Pennsylvania retirees. (A copy of the state-by-state analysis is available at www.jec.senate.gov/democrats)

    The new Medicare prescription drug law will drive up premiums even further. By design, the new prescription drug premium (Part D) will rise with the cost of drugs. With drug costs uncontrolled, the elderly will shoulder the burden of mounting prices.

    The National Committee has endorsed the “Social Security Protection Act of 2004” which guarantees that no more than 25 percent of a retiree’s annual COLA could be eaten up by the combined increases in the Part B and Part D Medicare premiums. Thus, a Social Security beneficiary could be assured that at least 75 percent of his or her COLA would be reserved to cover the costs of inflation in health care, food, energy and housing. The JEC report concludes that over 29 million Americans or 98 percent of all beneficiaries that pay Medicare premiums would be helped by this legislation.

    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.
    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.