Apr 15, 2013
In the 2014 Budget proposal, President Barack Obama has proposed to shrink Social Security cost-of-living increases. Over 10 years these cuts would amount to a 3 percent reduction in benefits – or close to $500 per year for those collecting the average benefit. In 20 years, it would mean a 6 percent reduction, or close to $1,000 per year!
He is also proposing 392 billion dollars in cuts to Medicare and other health care funding over the next 10 years. While the details of these proposals are not yet clear, to date these proposals include combining deductibles and copays from Medicare A and Medicare B together. This would result in increased costs to Medicare recipients as the much larger costs of deductibles and copays for hospitalization services are added to the lower costs of physician treatment. The government certainly intends to take these larger percentages of money for Medicare directly out of retirees’ Social Security benefits.
The administration says that they will give retirees a small increase in Social Security at age 76 after they have depleted their pension and savings to offset the impoverishment that these measures will bring. Promises, promises: Don’t hold your breath.