Higher Medicare Premiums Mean Seniors Will Lose Up to Half of Social Security COLA

Pelosi: Higher Medicare Premiums Mean Seniors Will Lose Up to Half of Social Security COLA

Washington, D.C.-House Democratic Leader Nancy Pelosi released the following statement today after the Social Security Administration announced that next year's cost-of-living adjustment (COLA) will be 2.7 percent, representing a monthly increase of about $25 for the typical beneficiary. But according to a new report released today by the Democratic staff of the Joint Economic Committee, as much as half of the increase will be eaten up by higher Medicare premiums.

"We have long known that the Republican Medicare prescription drug law is a cruel hoax on America's seniors that fails to reduce prescription drug prices. The billions of dollars this bill provides to the HMOs and the big drug companies have forced a 17 percent increase in Medicare premiums next year-the largest premium increase ever.

"Now, a new report by the Democratic staff of the Joint Economic Committee concludes that 13 million seniors will lose more than half of the Social Security COLA increase they depend on to make ends meet in order to pay for the increase in their Medicare premiums. That is unacceptable.

"The Republican Medicare law was written poorly, passed illegally, misrepresented unethically and marketed unlawfully. Now, it is undermining the guarantee of Social Security-the financial safety net that millions of seniors depend on to make ends meet.

"Democrats have introduced legislation that would help 98 percent of retirees pay their Medicare premiums and protect their Social Security COLAs, so that COLAs could be used as originally intended - to pay for annual increases in food, clothing, housing and energy costs.

"While Republicans are considering privatizing Social Security, Democrats are fighting to protect Social Security and Medicare. We will not allow the Republicans to undermine the retirement security of our seniors."