[Congressional Record Volume 151, Number 124 (Thursday, September 29, 2005)]
[Senate]
[Page S10737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON (for himself, Ms. Cantwell, Mr. Leahy, Mr. 
        Corzine, Mrs. Murray, Mr. Salazar, Mr. Reed, and Ms. Mikulski):
  S. 1795. A bill to amend the Social Security Act to protect Social 
Security cost-of-living adjustments (COLA); to the Committee on 
Finance.
  Mr. JOHNSON. Mr. President, today I am joined by several of my 
colleagues in the Senate to introduce the Social Security COLA 
Protection Act of 2005. This legislation will provide some relief to 
seniors from rising Medicare premiums, and ensure that their Social 
Security cost-of-living-adjustments or COLAs are made available for 
other essential needs such as food and housing.
  I first thank Senators Cantwell, Leahy, Corzine, Murray, Salazar, 
Reed and Mikulski in joining me in this effort. Last Congress several 
colleagues joined Senator Daschle and myself to introduce a similar 
bill. Representative Herseth in the House has introduced the companion 
bill today, and I thank her as well for her leadership on this and 
other important issues to seniors in South Dakota.
  In my home State, 1 in 6 people are Medicare beneficiaries. That 
represents 16 percent of our total State population. Many of these 
individuals live on modest fixed incomes and have to pay close 
attention to the checks they write and the groceries they buy every 
month. The seniors of my State are people that worked very hard all of 
their lives, as farmers, small business owners, teachers and parents. 
In old age, all they are hoping for is an opportunity to live out their 
years with a basic level of comfort and certainty.
  Unfortunately, as the cost of health care continues to rise at 
alarming rates, it becomes more and more difficult for seniors to have 
a sense of security during their retirement years. According to the 
Kaiser Family Foundation, U.S. spending on health care was 
approximately $1.7 trillion in 2003, almost two and a half times the 
$696 billion spent in 1990. That $1.7 trillion represents over 15 
percent of the gross domestic product. While spending did level off in 
2004, according to an analysis by the Center for Health System Change, 
overall health spending growth outpaced overall economic growth by 2.6 
percent in 2004.
  Increases in health care costs hit the pocketbooks of every American. 
Recently the Centers for Medicare and Medicaid Services or CMS 
announced that the Medicare Part B premiums, which pay for seniors' 
doctor visits and other nonhospital services, will rise 13 percent in 
2006. The 2006 increase will mark the third year in a row that 
beneficiaries will be subjected to a rise in their premiums of more 
than 10 percent.
  These premium increases will come at the same time that many Medicare 
beneficiaries will start to pay an additional premium for the Part D 
prescription drug program. Those premiums will range, averaging from 
$20 to $35 a month. Both Part D and Part B premiums will be taken from 
a senior's Social Security check.
  While seniors can expect a modest increase in their Social Security 
COLA every year, that increase has not kept up with the pace of 
increased health care costs and specifically Medicare premium costs. 
This is unfortunate, and does force many seniors to have to face the 
harsh reality every year that their fixed income is shrinking as their 
health costs go up. This October we should learn the Social Security 
COLA for 2006, and I fear that the combination of a modest increase and 
increased costs for participating in Medicare Part D are going to be 
difficult to adjust to for many seniors in South Dakota.
  This is why I have introduced the Social Security COLA Protection Act 
of 2005, which will mandate that no more than 25 percent of a senior's 
COLA be absorbed by the increase in Medicare premiums. This is 
important legislation that will protect the financial security of many 
retirees in my home State and across the country. I thank all of the 
Members who have introduced this bill with me today and urge the rest 
of my colleagues to join me in this effort.
                                 ______