Legislation introduced Thursday in the Senate would boost Social Security benefits for older adults by changing the way cost of living increases are calculated, but the bill’s chances of becoming law are uncertain.
“As the costs of basic goods and services for seniors rise, we cannot allow that promise to be broken. The Boosting Benefits and COLAs for Seniors Act would help seniors contend with rising costs and ensure that Social Security remains a lifeline for all who need it,” Sen. Bob Casey (D-PA), chair of the Senate Special Committee on Aging, stated in a press release.
Casey introduced the bill with Sens. Richard Blumenthal (D-CT), John Fetterman (D-PA), Kirsten Gillibrand (D-NY), Bernie Sanders (D-VT) and Peter Welch (D-VT). Blumenthal, Fetterman and Gillibrand also are members of the Aging Committee.
Social Security benefits are adjusted each year for increases in the cost of living, using data from the Consumer Price Index for Urban Wage Earners from the previous year. The index takes into consideration everyday expenses such as food, consumer goods and housing.
The senators suggested that the Consumer Price Index for Americans aged 62 or more years would be a more appropriate price index for evaluating the actual costs incurred by older adults.
Gillibrand said that the legislation would factor average healthcare costs for older adults into Social Security benefit calculations “and help make sure recipients aren’t forced to choose between paying for their medication and buying other necessities.”
“Social Security is a lifeline for older adults. For many, it’s their main source of income,” she said Wednesday during a press conference. “But benefits aren’t keeping pace with rising costs, leaving many older Americans struggling to afford the basics — particularly healthcare.”
The proposed bill is endorsed by Arc of the United States; the Alliance for Retired Americans, The American Federation of Government Employees, the American Federation of State, County and Municipal Employees,the California Alliance for Retired Americans, Justice in Aging;, the National Committee to Preserve Social Security and Medicare, the National Education Association, the National Organization of Social Security Claimants Representatives, Social Security Works and the Strengthen Social Security Coalition.
The legislation was introduced on the heels of a Wednesday hearing of the Aging Committee, at which participants discussed whether the Social Security Administration needs more funding.
Casey said that the agency is “drastically underfunded,” a state that is “creating some real challenges for the agency: from increased wait times for service and approval for disability benefits to overpayments and underpayments.” Sen. Mike Braun (R-IN), the committee’s ranking member, however, said that the agency faces a customer service challenge rather than a funding one.
