Boosting Benefits and COLAs for Seniors Act
The Boosting Benefits and COLAs for Seniors Act, introduced by Sens. Richard Blumenthal (D-CT), Kirsten Gillibrand (D-NY), Ruben Gallego (D-AZ), and U.S. Rep. Nikki Budzinski (D-IL), would direct the Social Security Administration to consider adjusting benefits based on the CPI-E instead of the Consumer Price Index for Urban Wage Earners (CPI-W), depending on whether benefits would increase.
One of the largest differentiators with the CPI-E formula is its heavy consideration of medical expenses along with other costs, say supporters of the change. The Senior Citizens League, a nonpartisan senior group, notes that the CPI-E is specifically designed to represent older Americans’ spending habits.
As the Social Security’s COLA is expected to raise retiree benefits by $56 a month this year, industry experts say much of that could be consumed by rising healthcare costs.
“Those costs are currently skyrocketing, with Medicare Part B premiums projected to increase by twice as much as last year,” said Nancy Altman, president of Social Security Works, an advocacy group. “The Boosting Benefits and COLAs for Seniors Act would correct this by incorporating a more accurate formula, the CPI-E.”
The legislation is cosponsored in the Senate by Sens. John Fetterman (D-PA), Bernie Sanders (I-VT), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), Jack Reed (D-RI), Elizabeth Warren (D-MA), and Angela Alsobrooks (D-MD).