The following legislation is not going anywhere, but it’s a good example of out of touch liberal politicians. Just add more and more to our growing liabilities and debt.
Under current law Medicare premium increases cannot lower a Social Security check. In other words, a premium increase cannot exceed a benefit COLA. No COLA; no premium increase. This happened in 2017 so many Social Security beneficiaries kept paying a premium of $109 when the actual premium was $134.
But that premium freeze must be made up so when there is a COLA, the premium is adjusted up to the amount of the COLA. In 2018 paying the $134 will consume most if not all of the COLA and that’s without a premium increase.
The Act described below proposes to change that. Premiums would no longer be paid in full by a COLA thereby shifting the premium shortfall to others or further debt.
Changing the COLA CPI to the CPI-E is no guarantee of higher increases. In some years it is actually lower that the CPI-W which is currently used.
According to a press statement from Norcross, the Seniors’ Security Act would ensure that cost-of-living increases do not get “eaten up” by rising health care costs. Specifically, the plan would ensure seniors never pay more than 30 percent of their cost-of-living adjustment (COLA) into Medicare premiums. The Act also recalculates cost-of-living adjustments (COLAs) so future changes would be based on the price of goods and services seniors actually buy, a formula known as Consumer Price Index for the Elderly (CPI-E).