About this bill:
Ø The Social Security COLA Protection Act of 2007 would protect seniors’ Social Security income from increases in prescription drug and other health care costs.
Ø The bill guarantees that no more than 25 percent of a Social Security beneficiary’s annual cost-of-living adjustment (COLA) could be consumed by increases in Medicare Part B and Part D premiums.
Why is this so important ?
Ø In 2008 rising Medicare premiums will already consume one-fourth of the average Social Security COLA.
Ø Women and minorities, who tend to have lower retirement incomes, are most affected by hikes in the cost of prescription drugs and health care; some low-income beneficiaries already lose their entire COLA due to rising health care costs.
Ø Social Security benefits will be further diminished by Part D premiums that grow each year as the cost of drugs used by Medicare beneficiaries increases.