Op-Ed: Congressman Patrick Kennedy E-newsletter

Op-Ed

Dear Fellow Rhode Islander:

Last week, the Social Security Administration confirmed that because of diminished consumer prices over the last year, 57 million Americans who receive Social Security and Supplemental Security Income (SSI) benefits will not receive an automatic Cost-of-Living Adjustment (COLA) in 2010. This is the first time there will be no automatic COLA since it was initiated in 1975.

In 2009, Social Security and SSI beneficiaries received a 5.8 percent COLA, the largest increase since 1982. The American Recovery and Reinvestment Act, signed into law in February, also included a one time payment of $250 to Social Security and SSI recipients. I am working with President Obama and my colleagues in Congress to devise another one-time payment to Social Security beneficiaries.

The reason that the COLA has failed to keep pace with actual costs for seniors is because costs for seniors are increasing much faster than for the general public. Over the last two decades, the cost of goods for the general public has risen by 90 percent, compared to 105 percent for seniors. I have co-sponsored the Consumer Price Index for Elderly Consumers Act which would change the formula used to determine Social Security COLAs to better reflect the purchasing power of older Americans.

The extra burden on seniors can be directly attributed to the cost of health care. That is why I voted for the Medicare Premium Fairness Act, legislation that would prevent Medicare Part B beneficiaries from having to pay higher Medicare costs when they are not receiving a Social Security COLA. This is one step towards ensuring that we lower costs for seniors, and health care reform will continue that process.

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