Democrats introduce bill that would raise Social Security to combat inflation
Democrats in the Senate announced a new bill that would increase Social Security benefits for seniors. While the bill will likely not pass the Republican-controlled Congress, Democrats say seniors are struggling to stay on top of rising costs.
The Social Security Emergency Inflation Relief Act includes a $200 increase for seniors until July 2026. Recipients of Social Security, Supplemental Security Income, veteran pensions, veteran disability compensation and railroad retirement would see the increase.
Why did Democrats propose the bill?
The bill’s sponsor, Sen. Elizabeth Warren, D-Mass., said seniors are struggling with the rising costs of goods and services. Seniors were the only group that saw a rise in poverty in 2024, according to Census Bureau data.
“The cost of everything from coffee to beef to health care is up … and Democrats are fighting to deliver some financial relief and lower costs for Americans,” Warren said. “This new legislation to expand Social Security is an emergency lifeline for seniors struggling to afford Trump’s tariffs and rising inflation.”
Inflation in the U.S. rose to 3% in September, the highest level since January, according to the Bureau of Labor Statistics.
Will the increase offset rising costs?
In October, the Social Security Administration announced recipients would receive a 2.8% cost-of-living adjustment (COLA) for 2025, which beneficiaries will see early next year. However, much of that additional money would be negated by the nearly 10% increase to the standard monthly premium for Medicare Part B.
The program, which covers outpatient care, doctor’s services, durable medical equipment and preventive services, is jumping from $185 to $202.90. The 2.8% COLA will average to about $56 for most recipients, but after the Medicare Part B increase, recipients will only see about $38.
For recipients receiving benefits of $640 or less, the large increase in Medicare Part B may trigger the hold-harmless provision. This prevents the Part B premium increase from being larger than the COLA. If the premium increase is higher, the provision prevents the beneficiary from paying the full increase. The unpaid portion is spread among those the rule doesn’t protect.
Democrats introduced a separate bill to tweak the current COLA formula. The SSA currently uses the Consumer Price Index for Urban Wage Earners and Clerical Workers. That inflation index measures the spending habits of younger, urban workers.
This bill would change that and base the adjustment on the CPI for older Americans.
The post Democrats introduce bill that would raise Social Security to combat inflation appeared first on Straight Arrow News.
Ella Rae Greene, Editor In Chief
