Social Security Payments Sans COLA, Puts Millions At Risk

August 23, 2009

US (ChattahBox) – For the next two years officials have stated that Social Security payments will not provide a cost of living adjustment (COLA), an occurrence that is expected to have a negative impact on many senior citizens.

The lack of an increase for the first time since Social Security automatic increases were adopted in 1975, is due to the lack of inflation in our current economy.  As inflation increases, cost of living drives Social Security payments up.

While the payments are not legally able to be decreased, and so no actual change will be seen in the amount, the high cost of health care, especially for seniors, is expected to wipe out a great deal of each payment, making it harder for seniors to live on their meager wages.

“For many elderly, they don’t feel that inflation is low because their expenses are still going up. Anyone who has savings and investments has seen some serious losses,” AARP official, David Certner, was quoted by Taragana.

The major problem is drug premiums, which have no legal limitation of premium increases. While other medical costs have a cap stating no increase can be greater than what is increased in the payment itself, drug premiums can, and will, rise drastically.

This poses a serious problem for millions of seniors and veterans who are on Medicaid, who have premiums immediately deducted from their Social Security checks.

Senator Bernie Sanders (I-VT) is working on a proposal which would create a one-time payment to all seniors this year who would be badly affected by the lack of a Social Security increase. He has been urging Congress to move now to help them before the financial problem worsens.

President Obama has said he plans to address Social Security next year.


Comments

14 Responses to “Social Security Payments Sans COLA, Puts Millions At Risk”

  1. Dominic Camapnelli on August 23rd, 2009 3:30 pm

    Is this the pres’s way to get back at us seniors for not going along on his healt care plane,,,,,,,,,,,,, an other way to get us to die befor our time so we dont eat up to much of the country;s funds, that there seams to be no end of for all the CEO’s & other rich so & so’s. Isn’t retaliation illegal.

  2. Social Security Payments Sans COLA, Puts Millions At Risk … « Security on August 23rd, 2009 4:27 pm

    […] O­­ri­gi­nally po­­st­ed­ here: Socia­l­ Securit­y­ P­a­y­m­en­t­s Sa­n­… […]

  3. donald noettl on August 23rd, 2009 6:00 pm

    Obama, you can be asured we will address this action at the ballot box.

  4. olivia on August 23rd, 2009 6:35 pm

    Dominic – Wow, that was an insane reply. It is BECAUSE of the high cost of drugs and health care that this happening, not as a way to get back at you for it. I think your immediate lashing out at the press is a little misguided, considering we have nothing to do with it. It wasn’t planned this way, either. If anything, you should be angry with the drug companies for increasing prices amidst the threat of a health care plan.

  5. Social Security Payments Sans COLA, Puts Millions At Risk … « Security on August 23rd, 2009 7:37 pm

    […] S­ee th­e o­r­iginal po­s­t h­er­e:  S­o­cial S­e­curity­ Pay­m­e­nts­ S­ans­ CO&#… […]

  6. little los angeles on August 24th, 2009 1:39 am

    just a sad news for the elderly.

  7. Kirsten on August 24th, 2009 2:33 am

    It will be interesting to see if this will ever change.

  8. Dominic Camapnelli on August 24th, 2009 3:10 am

    Olivia ,,,,,, I ment the president not the press,,,,,,,,,,I think you guys , well most of you do a pretty good job

  9. Dominic Camapnelli on August 24th, 2009 3:16 am

    Oh,,,,,,,,,, and as far as the drug Co. go they have more people in thair pockets then the Israeli’s

  10. Wholesale NFL Jerseys on August 24th, 2009 3:55 am

    This poses a serious problem for millions of seniors and veterans who are on Medicaid, who have premiums immediately deducted from their Social Security checks.

  11. dprosenthal on August 24th, 2009 8:14 am

    No problem— under Obamacare we’ll all be dead soon anyway!

  12. olivia on August 24th, 2009 12:00 pm

    dprothenal – So happy to see the ignorance spread by insurance companies still prevails, despite how easy it would be to speak to someone from a country with Universal Healthcare. It’s funny…they all seem to be alive and well.

  13. Gary on August 24th, 2009 3:09 pm

    It’s time to start ramping up to get Obama out of office. This has been this countrys biggest mistake by voting this “do nothing” President into office. He promised change alright,,,change you cannot believe it. He is sending the message loud and clear to everyone,,,do as I say,,not as I do. He calls for everyone else to sacrifice but yet he travels on Air Force One nearly every week at a cost of $1,000,000 for dates nights to Chicago,,,New York,,,God knows where else. Everyone else has to tighten their belts while this globetrotting scum spends most of his time on TV like he’s a rock star. I will work like hell to ensure this clown does not get re elected.

  14. Tim Chirnin on August 24th, 2009 5:30 pm

    Some sage said words to the effect and I paraphrase; “a country is judged by how it treats the most vulnerable of its citizens.”

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