A recently introduced bill in the U.S. House aims to provide more money annually for seniors who receive Social Security benefits thanks to a change in the way the yearly cost-of-living-adjustment (COLA) would be determined. Known as the Boosting Benefits and COLAs for Seniors Act, the bill was introduced by Rep. Ruben Gallego, D-Arizona.
Currently, the COLA is determined by the Consumer Price Index for Urban Wage Earners (CPI-W) from the previous year. The CPI-W considers various factors regarding the spending of Americans on items like food, consumer goods, housing, health care and more. Critics of using the CPI-W say the formula doesn’t account for how these expenses impact seniors, especially when considering inflation. For this year, the COLA was 3.2% or roughly $50 per month for recipients. Last year, the COLA was an 8.2% increase.
Gallego’s proposal would use the Consumer Price Index for Americans aged 62 or older (CPI-E) to determine the COLA if that formula would result in more money for seniors. Gallego says the CPI-E weighs medical expenses more heavily when completing the formula and in turn, could increase benefits for seniors.
The bill would also direct the Bureau of Labor Statistics to calculate and publish the CPI-E monthly. “A monthly Social Security check is how most seniors make ends meet, we need it to pay our bills and pay for health co-pays and medications,” Roman Ulman, President of AFSCME Arizona Retirees Chapter 97 said. “The current annual cost-of-living-adjustment (COLA) formula does not account for the inflation seniors see in health care costs. It’s important that the COLA reflects how inflation impacts seniors so that we can pay our bills and our monthly Social Security checks stays strong.”
A companion bill was introduced in the Senate last month by Sen. Bob Casey D-Pennsylvania.,
