Cost of Living Adjustments for Social Security Beneficiaries Would Accurately Reflect Higher Health Care and Every Day Costs

The United Steelworkers (USW) today strongly endorsed legislation by Sens. Sherrod Brown (D-Ohio) and Barbara Mikulski (D-Md.) that would adopt a much more accurate consumer price index for elderly consumers (CPI-E). Developed by the Bureau of Labor Statistics, this index would base its calculation on a market basket of goods purchased by retirees.

It is well understood that retired Americans spend much more of their financial resources on health care and housing than the general population. The current formula for calculating the annual Cost of Living Adjustment (COLA) for Social Security beneficiaries, however, does not accurately reflect their everyday costs, understating in particular, health care costs that are rising well beyond the rate of inflation ... more