Social Security Cost of Living Adjustment Protection Act

SOCIAL SECURITY COST OF LIVING ADJUSTMENT PROTECTION ACT -- (House of Representatives - July 22, 2004)

The SPEAKER pro tempore. Under a previous order of the House, the gentlewoman from South Dakota (Ms. Herseth) is recognized for 5 minutes.

Ms. HERSETH. Mr. Speaker, today I am introducing the Social Security Cost of Living Adjustment Protection Act of 2004. As my colleagues know, I am a new Member of Congress. This legislation, which will protect the retirement incomes of millions of Americans, marks the first bill that I have introduced.

[Time: 22:45]

To me, this bill represents the partial fulfillment of a pledge I made to thousands of seniors in South Dakota that if they sent me to Washington, I would fight for them, stand by them and make their voice heard. This bill meets that goal by helping to ensure retirement security for every senior who depends upon his or her monthly social security check to make ends meet.

I am joined today in introducing this bill by our Democratic leader, the gentlewoman from California (Ms. Pelosi), and by two senior members of the Committee on Ways and Means, the gentleman from California (Mr. Stark), the ranking member of the Committee on Ways and Means Subcommittee on Health; and the gentleman from California (Mr. Matsui), the ranking member of the Committee on Ways and Means Subcommittee on Social Security.

In addition, I deeply appreciate the support of the many additional Members who are joining us in sponsoring this legislation today. Our bill will protect senior citizens from seeing the modest annual increase they receive in their social security benefits absorbed by the rising cost of health care. For retirees who depend on social security benefits to live, the only defense against increasing prices for food, clothing, and energy is the annual cost-of-living adjustment. However, rising Medicare premiums are threatening to severely diminish the purchasing power of this yearly increase in benefits.

In fact, this fall retirees are projected to face the largest premium increase in the history of the program. This means that next year a widow with a $600 monthly social security check will use 59 percent of her COLA just to pay the increase in her Medicare premium.

Every dollar that goes toward rising Medicare premiums is one less she can use to pay for groceries or her utility bill. We are not wealthy in South Dakota. Retirees in my State clip coupons. They put off buying the things they need. They live modestly, because that is what they have to do to get by. So it is no exaggeration to say that retirees in South Dakota need every penny of their COLA, not just so they can maintain a basic standard of living, but so they can maintain their dignity.

This legislation protects retirees by ensuring that no more than 25 percent of their COLA can be absorbed by the increase in Medicare premiums. Next year, it will protect more than 27 million retirees who otherwise would see their scarce dollars taken from food, clothing and other essential purchases.

I hope that Congress will take up and pass this legislation quickly, because the need for it is real and immediate. This fall, just as Medicare premiums go up, temperatures in South Dakota will be going down. Seniors will sit at their kitchen tables reading through their bills, and they may wonder yet again how they are going to make it through the month. We owe them to do better, and I hope that we will.

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