A report released by the House Oversight Committee last week said that from 2016 to 2020, the 14 top drug companies spent 7 billion on stock buybacks and dividends. That is some billion more than the amount spent on research and development, the report said..In fact, the fastest growing cost for seniors Medicare Part B premiums is not accounted for at all in the CPI-W since young workers are not enrolled in the Medicare program. Since 2000, Medicare Part B premiums have increased by 195 percent and prescription drug spending has increased by 184 percent. However, COLAs have increased Social Security benefits by just 43 percent since 2000..The Congressional Budget Office recently reviewed a proposal that would boost the taxable amount of Social Security benefits, as one of the options for Congress to consider to reduce the federal deficit. The proposal, which the CBO has reviewed in prior versions of its Options to Reduce the Deficit, would tax Social Security and Railroad Retirement benefits the same way that distributions from defined benefit pensions are taxed. This is expected to increase the taxable income of older Americans..Senate Republicans said this week they are more focused on reforming the Small Business Administration's Paycheck Protection Program, providing more money for cash-strapped state and local governments, boosting benefits for Social Security recipients and fixing other elements of COVID-19 relief bills passed earlier this year..Then on Monday there was a report that Congressional negotiators were closing in on a government spending bill agreement after keeping the funding for Veterans Affairs Mission Act under the .4 trillion budget cap, a significant victory for the House Republicans who insisted on this provision, according to two congressional aides..Extending The Payroll Tax Cuts: Employees' Social Security payroll taxes were reduced by 2 to 4.2 percent in December. Because it makes the Social Security trust funds reliant on general revenues, it would jeopardize the Administration's ability to fully pay Social Security benefits now, especially as we approach the August 2nd debt limit..TSCL believes a cap of ,000 to ,000 out-of-pocket, particularly for people who don't receive any "Extra Help" to cover drug costs and out-of-pocket spending, would provide much needed protection that would significantly reduce the current impoverishing level of mandated out-of-pocket spending..Research conducted by Johnson for The Senior Citizens League has found that Social Security benefits have lost 34 percent of their buying power since 2000 because the index used to calculate the annual cost-of-living-adjustment increase doesn't adequately factor in the cost increases experienced by retirees. In 2000, for example, it cost 5 to fill up a 500-gallon home-heating oil tank. The average benefit amount in 2000 was 6, leaving older homeowners with 1 to put toward other household expenses. Today, it costs about ,640 to fill the same oil tank, but those who received benefits of 6 in 2000 only receive ,193.10 in 201"That leaves older consumers digging into savings or borrowing to make up the difference of 6.90," Johnson says. "The Social Security loss of buying power for 2018–2019 appears likely to continue to get worse.".Yet in deficit reduction negotiations over the past two years, both President Obama and Congressional budget negotiators proposed cutting the growth in annual cost–of–living adjustments and several Medicare measures that would increase beneficiaries' out-of-pocket costs, like higher deductibles, and new co-pays, over the same time. "Making beneficiaries pay more for their Medicare, with less income, simply isn't feasible for a large percentage of today's older Americans," says Cates. "TSCL believes that Congressional candidates could face pushback from concerned senior voters in upcoming elections," he adds.
