Ginny Explains Social Security Proposals to Area Residents

Washington, D.C., Nov 30, 2007 -

As Social Security recipients across Florida found out this October, the cost-of-living adjustment (COLA) for 2008 is one of the smallest in recent memory at 2.3%.  I find it troubling that faceless bureaucrats in Washington, D.C., are directed by law to ignore the day-to-day needs of senior citizens facing higher healthcare costs and rising homeowner’s insurance policies when calculating the COLA.  There is a better way to calculate the COLA, and I wanted to take this opportunity to share my idea with you.

Many seniors have asked me what can be done to guarantee a more realistic COLA for next year’s increase.  I tell everyone who calls to join me in supporting H.R. 2932, the Consumer Price Index for Elderly Consumers Act.  Rep. Peter DeFazio (D-OR) and I introduced this bipartisan legislation to guarantee our seniors a much needed COLA increase in their Social Security checks each month.  As every senior knows, a 2.3% increase translates to only an extra $20 or $30 over the year.  With healthcare costs rising nearly 10% annually, this increase is not nearly enough to help seniors reliant solely on Social Security afford life saving medicines and care.

As you might know, the Social Security COLA formula is currently based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.  While this might sound like typical government nonsense, the formula is extremely important to the men and women in my district.  This COLA is based on the rate at which the price increases for goods and services purchased by the average consumer.  However, we all know the purchasing habits of seniors are not the same as the average consumer.  Seniors need a pricing index that takes into account the unique goods and services they purchase, such as healthcare and prescription drugs.

Unfortunately, with the Democratic Party in charge of the legislative agenda for the House of Representatives, it will be up to Congressman DeFazio and Speaker Nancy Pelosi whether this bill gets consideration and a vote.  I would hope that he can use his influence with the Democratic Party to move this legislation forward and provide some relief to seniors in need.  Helping American seniors and scheduling a vote on the bill should be a priority for the leadership of the House.

Finally, H.R. 2932 would ensure Social Security beneficiaries receive a COLA that reflects their increased cost of living, not that of the average consumer.  Rest assured that I am doing everything I can to see our bill become law so that next year’s Social Security COLA will better approximate the increased costs seniors in Florida’s 5th District face each day.