Senior Spotlight
Social Security Benefits Hiked By 3.3 Percent For 2007

Next year, 49 million recipients of Social Security benefits will see the amount of their monthly checks increased by 3.3 percent, representing the annual Cost of Living Adjustment (COLA).

According to an Associated Press dispatch from Washington, the monthly average benefit of $1,011 for this current year will increase to $1,044.

Besides the 49 million Social Security members, another 4 million people who receive Supplemental Security Income (SSI) payments will also see the 3.3 percent COLA in their monthly benefit check. SSI helps low-income persons.

The 3.3 percent increase for 2007 is just about 1 percent lower than the 2006 COLA, which was 4.1 percent. The 4.1 percent COLA increase was the biggest in 15 years.

However, the COLA increase will be offset slightly by increases in seniors' Medicare premiums, which will also go up next year. Seniors might also see increases in what they pay for the Medicare Part D drug prescription benefit. Other possible health care cost increases could arise.

Advocates for seniors note that the cost-of-living adjustment was an important and beneficial safety net for seniors, nearly one-third of whom count their monthly Social Security checks as their sole income.

David Sloane an official of the American Association of Retired Persons (AARP), noted, "The fundamental value of Social Security is becoming even more critical as America's traditional pension system declines."

The announcement of an increase of the Social Security benefit for 2007 will also remind millions of members of proposed new changes in the 70- year-old program that would have threatened the current level of benefits and even its future existence.

In the past, particularly in recent years, seniors and their advocates have fought against changes to the Social Security system, especially when the George W. Bush presidential administration proposed permitting some members to invest their SS payment into individual stock accounts, which would weaken the basic system.

MALONEY PROPOSES PART D FIX: Congressmember Carolyn Maloney issued a report last week which outlined both the difficulties some enrollees are experiencing and the proposed changes to significantly lower out-of-pocket costs for members of the federal drug prescription subsidy program.

The problems listed by Maloney (D-Queens/Manhattan) included:

1. Escalating drug prices, sometimes 80 percent higher than what the federal government pays for its healthcare program members.

2. Almost 6.5 million fewer members than were expected to enroll.

3. Inadequate benefits, due in many cases to the infamous so-called doughnut hole, which costs many members about $2,850 and more in out-ofpocket expenses.

4. Drug denials for some members whose particular plans don't cover the drugs they must have forcing them to purchase their medications with their own money.

5. Inaccurate information and unnecessary red tape, which deprive many members of the chance to correct deficiencies in their programs.

To fix these problems, Maloney and her Democratic colleagues propose:

1. Reducing the drug prices members pay by mandating Medicare officials to negotiate lower prices with drug manufacturers, as many large health plans do.

2. Using the savings from lower drug prices to eliminate the doughnut hole.

3. Extending this year's May 15 deadline for signing up for the program so new members can enroll without the penalty imposed for enrolling past the deadline.

4. Simplify plan choices by allowing members to get their best plan, or have Medicare officials design a standard plan.