COLA Still Fails to Keep Up with Medical Costs

Medical costs are significant for many older Americans. While medication prices continue to rise, Social Security benefits remain low. COLA is supposed to address inflation and help to meet the current cost of living. When the increase can’t even stay up to date with current med costs, it falls short of its purpose.

Recent COLA Increases

The Cost of Living Adjustment (COLA) is announced toward the end of every calendar year. This process is intended to keep benefits in line with current costs. Of course, this sounds like a reasonable solution to address the issue of inflation. However, the increase is typically far too low to make a significant difference. For example, the COLA for 2021 was only 1.3 percent which meant an average of less than $20 a month for most recipients. 2022 and 2023 COLA saw a significant increase, but it stall failed to meet the needs of seniors during challenging economic times. To make matters worse, the anticipated 2024 COLA is in line to be much smaller and much more like the 2021 amount.

Medical Cost Statistics

January each year generally brings higher prices for medication. For example, 2020 statistics revealed that in just the first month, 639 drugs increased by an average of 6%, 619 brand-name drugs increased by an average of 5.2%, and 20 generic drugs increased by an average of 29.4%. There have been important changes in recent years to Medicare premiums and medication costs, however, these do not create the across-the-board change that seniors need.

Can do Better than COLA?

COLA does not actually help with the cost of living if it is not enough to cover necessary medical costs. The bill we call The Greatest Generation Benefits Act would give seniors aged 82 and older substantially more. This change would mean an additional $85 per month plus 4% every year moving forward. Let Congress know that you support our seniors by signing our petition.

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