Obama Signs Extensions into Law.Unrealistic Cost-of-Living-Adjustments : COLAs are already inadequate: Seniors have lost almost one-third of their buying power since 2000, according to a recent TSCL study. In that period, COLAs increased just 31 percent, while typical senior expenses jumped 73 percent, more than twice as fast. There is talk of using a "chained" CPI to calculate COLAs. But the spending patterns assumed by the "chained" CPI don't apply as well to seniors, who spend a larger percentage of their income on necessities that aren't as conducive to substitution. Billed as a mere "technical correction," a TSCL analysis shows that using a "chained" CPI to calculate COLAs would in fact slash payments by more than ,000 over a 25-year retirement. Read more here and here..Compounding the problem, it's also common for people close to retirement to underestimate medical expenses. Four-out-of-ten participants in the Nationwide survey did not expect to spend any of their Social Security income on healthcare. The Social Security Administration, however, automatically deducts the Medicare Part B premium, which is 4.00 per month in 2018, from Social Security benefits. Medicare Part B premiums have been the fastest rising retiree cost over the past 18 years..This week, TSCL announced its support for the Improving Care for Vulnerable Older Citizens through Workforce Advancement Act, which was introduced by Sen. Bob Casey in the Senate, and by Rep. Matt Cartwright in the House. If signed into law, the bill would create six different demonstration projects that would focus on the coordination of care for elderly patients with multiple chronic illnesses. It would put Direct Care Workers such as nursing assistants, home health aides, or personal care aides in advanced roles, and it would test and evaluate different models of care coordination..To offset the increased spending, the proposal calls for approximately 0 billion in health care savings, with most coming from within the Medicare program. Under the President's plan, more beneficiaries would be subject to means testing and they would see higher premiums for Parts B and D. In addition, new beneficiaries would need to pay a copayment on home health care services, and they would also be faced with a surcharge on premiums for Medigap plans..doctor decide if you qualify or one that requires that a person be unable to perform two activities of daily living. Some require more. Look for coverage.The COLA as currently calculated is failing to protect the buying power of the beneficiaries for whom it is intended. TSCL supports legislation, the 3% COLA Act, that would ensure a more fair and adequate COLA two ways. It would base the annual boost on an index that more accurately reflects of the costs of older Americans - the Consumer Price Index for the Elderly. In addition, the legislation would require an annual minimum COLA of no less than 3%..According to TSCL's Senior Surveys, more than half of retiree households pay taxes on Social Security benefits. The new tax law did not change the income thresholds that subject Social Security benefits to taxation. Taxpayers with incomes in excess of ,000 or ,000 pay taxes on as much as 50% of Social Security benefits. For taxpayers with income exceeding ,000 and ,000, up to 85% of Social Security benefits may be taxed. Rather than paying quarterly estimates, taxpayers may use Form W-4V to withhold a flat rate from Social Security checks: 7%, 10%, 12%, or 22%..TSCL's report entitled "The Cost of Illegal Earnings Under Totalization With Mexico" examines three ways illegal Mexican workers could become entitled to benefits under an agreement with Mexico. The report concludes, "responsible, comprehensive cost estimates of the totalization agreement with Mexico simply cannot afford to ignore the very large and significant cost of benefits based on illegal, unauthorized work. Doing so results in highly misleading and incomplete estimates that would jeopardize the future solvency of Social Security, leading to benefit cuts and higher taxes."
