The number of seniors 65 years old or older who enroll in Medicare as an overall care, just hospital insurance and as a supplementary medical insurance.
Seniors Feeling Vulnerable with Projected COLA Results
Published Thursday, May 21st, 2009
In the last week, the Congressional Budget Office projected that the Cost-of-Living-Adjustment (COLA) is projected to not increase Social Security benefits in the coming years. There has been an increase in benefits every year for 30 years. According to the Bureau of Economic Analysis, the E-CPI (Experimental-Consumer Price Index) weights medical care and shelter more heavily for those aged 62 and older. The regular CPI states that, in 25 years, inflation has risen 3%, yet the E-CPI has risen 3.3% for older Americans. According to the law, Social Security Benefits cannot outpace inflation except when prices fall. When deflation exists, the COLAs remain steady at zero and actually purchase power goes up. In 2008, the rise of energy prices resulted in a 5.8% COLA to compensate in 2009, yet the energy prices dropped and the CBO projects inflation will be below 2008 levels for some years. However, many older Americans believe that no COLA means they are left behind and will suffer.
Poverty for older adults as of 2007 has reduced from a decade ago, yet the disparity between males and females still exist as females are twice more likely to experience poverty than males. Yet, those houses with elderly present have begun to rely more on the food stamp program in recent years. Plus, the retirement rate has slowed and more elderly are reentering the workforce. This comes as Social Security Benefits have steadily risen, especially with the recent rise in energy prices. On the medical side, life expectancy has risen; the percentage of those who take prescriptions is up 13.7%; many more are enrolling in the Medicare program; and expenditures for nurses and retirement homes have risen to $138 billion.
Department of Health and Human Services: Medicare Services - http://www.medicare.gov/
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