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Keeping our Seniors Afloat

 

These are tough times for seniors, especially those relying on Social Security for all or most of their income.  According to 2008 AARP data, three out of five Maine Social Security beneficiaries rely on Social Security for half or more of their income, and for three of every ten beneficiaries, Social Security is their only source of income.

 

Each year, as these Mainers look at their tight budgets to figure out how to pay for their rising costs, they have counted on a very modest cost of living adjustment (COLA) to their Social Security checks to help keep them afloat.   Recently, many of these seniors have found their COLA just barely covered the increases in their Medicare Part B premiums, let alone prescription drug price increases. 

 

So when it was announced this year that there would be no COLA for 2010, anxiety took hold for many.  Unfortunately, the reason behind this bad news is no comfort to them: the formula for determining the COLA overestimates the cost of some items like fuel and underestimates the impact of health care costs, leading to a determination that there is no inflation, despite what your grocery receipts may be telling you.  Changing the formula would be helpful, but would likely be a long legislative and bureaucratic fight.

 

With about half of our 40 million members on Social Security, we are acutely aware of this problem and have been working in Washington to find immediate relief.  While there is more to be done, we see encouraging signs of progress toward addressing this issue.

 

The first sign came last week when the House passed the Medicare Premium Fairness Act (HR 3631) by an overwhelmingly bi-partisan 406-18 vote.  Both Congressman Michaud and Congresswoman Pingree can be thanked for supporting this bill, which would ensure that Part B premiums would not increase in 2010 thereby helping to prevent a cut in Social Security checks next year.  AARP encourages Senator Snowe and Senator Collins to support this income security measure as well. This is not a Republican or a Democratic issue, but an issue of maintaining the dignity of all Mainers as they age.

 

AARP continues to work with Members of Congress on both sides of the aisle to address the COLA issue, and several legislative proposals have been offered to provide a temporary fix that would provide beneficiaries with a cost of living adjustment of some sort, whether via a one-time payment or through another form of financial relief.  Whatever the mechanism, AARP urges Congress to provide some relief to seniors whose costs continue to go up while their incomes remain stagnant. Please let your elected leaders know how important this issue is to you.

 

Nancy Kelleher is AARP’s Maine state director.

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