THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ 4 Million Seniors ~ One Voice ~No Privatization ~

October 18, 2006

NEWS RELEASE

"America's seniors are feeling the pinch of rising healthcare costs, out of pocket fees and premiums and the Social Security COLA just doesn't keep pace.
Seniors are being asked to foot more and more of the bill while the larger issue of
controlling runaway healthcare costs languishes largely ignored in Washington"…Barbara B. Kennelly, President/CEO

Social Security COLA Increase Doesn't Add Up
for Millions of Seniors

Today, the Social Security Administration announced a 3.3% increase in the annual Cost of Living Adjustments for Social Security beneficiaries in 2007. The COLA increase will take effect January 1.

The 3.3% increase adds about $33.00 to the average Social Security check of $1,011.00. However, the rising premiums for Medicare Part B coverage and the Part D drug benefit, along with Medicare means testing which begins in January, will offset the COLA increase for millions of seniors.

" Medicare Part B premiums in 2007 will go up by 5.6% or an average increase of $5.00 per month, which is 15% of the COLA increase. The new standard monthly premium will be $93.50. Part B covers physician services, hospital outpatient care, durable medical equipment and other services including some home health care.

" Between 1.5 and 2 million beneficiaries will pay an additional $12-$68 per month for Part B coverage, beginning in January.

" CMS estimates Medicare Part D's average monthly premium for 2007 will be $24.00. A new Congressional analysis puts that number closer to $29.00.

More details on Medicare means testing, the privatization of Medicare and Part D are available at www.ncpssm.org.