[Congressional Record Volume 151, Number 124 (Thursday, September 29, 2005)]
[Extensions of Remarks]
[Pages E1998-E1999]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                THE SOCIAL SECURITY COLA PROTECTION ACT

                                 ______
                                 

                         HON. STEPHANIE HERSETH

                            of south dakota

                    in the house of representatives

                      Thursday, September 29, 2005

  Ms. HERSETH. Mr. Speaker, before I was elected to the House of 
Representatives, I made a promise to thousands of seniors in South 
Dakota that, if they would send me to Washington, I would fight for 
them, stand by them, and make their voice heard. To help keep that 
promise by protecting the retirement income of nearly 100,000 South 
Dakotans from rising health care costs, the ``Social Security COLA 
Protection Act'' was the first piece of legislation I introduced upon 
my arrival.
  Today, I am reintroducing the ``Social Security COLA Protection Act'' 
because the situation facing seniors in South Dakota and around the 
country is just as dire today as it was a year ago.
  For retirees who depend on Social Security benefits to live, the only 
defense against increasing prices for food, clothing and energy is an 
annual cost-of-living adjustment, or COLA. However, rising Medicare 
premiums are diminishing the purchasing power of this yearly increase 
in benefits.
  Over the last 5 years, monthly Medicare Part B premiums have nearly 
doubled. On September 16th, the Centers for Medicare and Medicaid 
Services announced that Medicare beneficiaries will pay an additional 
13 percent out of their Social Security checks in 2006. This marks the 
third consecutive rise of more than 10 percent and exceeds the 12 
percent increase Medicare's trustees predicted in March. Every dollar 
that goes toward rising Medicare premiums is one less South Dakota's 
seniors can use to pay for groceries or utility bills.
  We're not wealthy in South Dakota. Retirees in South Dakota clip 
coupons. They put off buying the things they need. They live modestly 
because that is what they must do to get by. It is no exaggeration to 
say that retirees in South Dakota need every penny of their COLA. Not 
just so they can maintain a basic standard of living--but so they can 
live with dignity.
  My legislation protects retirees by ensuring that no more than 25 
percent of their COLA can be absorbed by the increase in Medicare 
premiums. Next year, it would protect 100,000 South Dakotans who 
otherwise would see their scarce dollars taken from food, clothing and 
other essential purchases. For those who depend on Social Security to 
pay their bills, this legislation will help them save enough to buy new 
clothes, extra medicine or just a plane ticket to visit the 
grandchildren.
  Last Congress, my legislation had the support of 116 members of the 
House and of prominent advocacy groups for seniors such as the National 
Committee to Preserve Social Security and Medicare, the Alliance for 
Retired Americans and Families USA. I hope that Congress will take up 
and pass this legislation quickly, because the need for it is real and 
immediate.

[[Page E1999]]

  This fall, just as Medicare premiums go up, temperatures in South 
Dakota will be going down. Seniors will sit at their kitchen tables, 
reading through the bills, and they may wonder yet again how they are 
going to make it through the month. We owe it to them to do better. I 
will work to see that we will.

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