WASHINGTON, Oct. 20 /PRNewswire/ -- A new report released by the
Democratic staff of the Joint Economic Committee yesterday shows that
increasing Medicare premiums are eroding Social Security benefits of Hispanic
American seniors. Under the Bush Administration, next year's Medicare premiums
for seniors will increase a record 17.4 percent -- the largest increase in
Medicare's history -- while their Social Security benefits will increase by
only 2.7 percent. That means that almost half of seniors' Social Security cost
of living adjustment (or COLA) will be spent on Medicare premiums alone.
Social Security and Medicare are critical for millions of Hispanic
American seniors. There are approximately 2.2 million Latino seniors on Social
Security and Medicare. And, without Social Security, the poverty rate for
Latino seniors would increase from 16 percent to 55 percent.
"We have long known that the Republican Medicare prescription drug law is
a cruel hoax on America's seniors and that it fails to reduce prescription
drug prices," said House Democratic Leader Nancy Pelosi. "But yesterday's
report makes clear that Republicans' refusal to control drug prices has led to
escalating Medicare premiums and cuts in seniors' Social Security COLAs.
That's unacceptable."
The new report concluded that 2.1 million beneficiaries will lose their
entire COLA and 12 million beneficiaries will lose over 50 percent due to the
record Medicare premium increase. Republicans have a dismal record on seniors'
issues. Not only did they force through a Medicare bill that bans buying drugs
from Canada, blocks Medicare from negotiating the best price for seniors, and
gives billions to HMOs and the insurance industry before seniors see a dime in
benefits, but their Medicare bill that drives up Medicare premiums by 17
percent, practically wiping out the Social Security COLA increase that
millions of seniors depend on for financial security. That's on top of wanting
to privatize Social Security.
Democrats in Congress have proposed the "Social Security COLA Protection
Act of 2004" to combat the rising Medicare costs. This bill would ensure that
no more than 25 percent of a Social Security recipient's COLA could be taken
away be increases in Medicare premiums, including the existing "Part B"
premium for outpatient care and the new "Part D" premium for prescription
drugs. It would ensure that Hispanic American seniors could use their Social
Security COLAs as intended -- to pay for annual increases in food, housing and
energy costs.
In 2007, the legislation would help more than 14 million Social Security
recipients. By 2014, it will help more than two-thirds of seniors and people
with disabilities, approximately 23 million Americans.
"While Republicans are considering privatizing Social Security, Democrats
are fighting to protect Social Security and Medicare. We will not allow the
Republicans to undermine the retirement security of our seniors," Pelosi said.
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