A group advocating the strengthening of Social Security and Medicare says Wednesday's announcement of a small increase in cost of living benefits signals trouble for Seniors.
The Social Security Administration announced a 1.7 percent cost of living adjustment. The National Committee To Preserve Social Security and Medicare was quick to note the increase falls far short of keeping up with increasing health expenses.
Dan Adcock from the group compares the average $20 per month increase to the cost of health care...
"....they're spending three times the amount on health care as younger people. It's not a lot of money for a lot of people where Social Security is their only source of income...."
Seniors spend 14 percent of their budget on health expenses which is nearly three times the share of spending in non-Medicare households. The typical person on Medicare pays about $4,700 out of pocket in premiums.
Adcock says the basis to determine the adjustment is antiquated and should be tied to the actual costs seniors are paying....
"....something called the Consumer Price Index For The Elderly that takes into consideration the disprorportionate share that older people spend on their health care...."
He says this method more accurately accounts for the spending patterns of the elderly.
Adcock says the talk among some members of Congress is to raise the eligibility age for Medicare to 67.
