WASHINGTON - More than 47 million elderly and disabled people will receive a 2.7 percent cost-of-living increase - an average of about $25 a month - in their Social Security benefits starting in January, the government announced yesterday.
But for many of those who participate in Part B of Medicare, which covers visits to doctors' offices, almost half of the benefit increase will disappear before they ever see it.
The government announced last week that the Medicare premium, which typically is deducted from Social Security checks, would rise by $11.60 a month next year.
"Far too many Social Security beneficiaries will see [the benefits increase] partially or completely eroded by the Medicare Part B premium increase," said William D. Novelli, chief executive officer of AARP, a senior citizens' lobby.
At the same time, David Certner, AARP's director of federal affairs, said the cost-of-living adjustment "is always welcome news."
"Those 2 percent to 3 percent a year make a huge difference," he said.
Largest since 2001
The Social Security adjustment, which was calculated to equal the increase in the consumer price index from the July-September period in 2003 to the same three months in 2004, will be the largest since benefits rose by 3.5 percent in January 2001.
On the campaign trail yesterday, Sen. John F. Kerry, President Bush's Democratic challenger, used the news to go on the offensive.
"For a typical senior, nearly half of this year's Social Security cost-of-living adjustment is going to be eaten away by the record rise in Medicare premiums," Kerry said at a rally in Wilkes-Barre, Pa.
"That leaves less money for food, medicine and even an occasional gift for a grandchild."
Calling Social Security a "sacred compact between generations," Kerry said Bush would have a "January surprise" for Americans by swiftly pushing to privatize Social Security after his re-election.
The Bush campaign called Kerry's comments "false and baseless attacks."
Leading congressional Democrats in the House and the Senate echoed Kerry`s sentiments. House Minority Leader Nancy Pelosi of San Francisco blamed the recently enacted Republican bill authorizing the Medicare prescription drug benefit for also providing "billions of dollars to the HMOs and the big drug companies" - payments that resulted in the 17 percent increase in the monthly Medicare premium.
