August 7 , 2007

Representative Charles A. Gonzalez
United States House of Representatives
Washington , DC 20515

Dear Representative Gonzalez:

On behalf of the millions of members and supporters of the National Committee to Preserve Social Security and Medicare, I write to endorse the Consumer Price Index for Elderly Consumers Act (H.R. 1953). We strongly support your efforts to implement a consumer price index (CPI) that more accurately reflects the inflation rate of consumer spending among seniors.

Currently, yearly cost-of-living increases to Social Security benefits are based on a consumer price index that tracks the spending habits of young, urban workers — the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. However, younger workers have far different spending habits than seniors, who must use a far greater percentage of their income on health care and prescription drugs, both of which have seen enormous price rate increases. Adjusting cost-of-living increases to Social Security benefits using a CPI that reflects the spending habits of the elderly would prevent a decline in the purchasing power of retirees' benefits and protect against skyrocketing healthcare costs.

The National Committee looks forward to working with you to secure passage of the Consumer Price Index for the Elderly Consumers Act, which we believe would be helpful to millions of Social Security beneficiaries. We applaud you for your continued leadership on this important issue.

Cordially,

Barbara B. Kennelly
President and CEO