9.9 million Seniors to see annual Social Security check increases wiped out by 2012; Women to suffer disproportionately, says new study

WASHINGTON, Dec. 6 /U.S. Newswire/ -- The Social Security Cost of Living Adjustment (COLA), intended to help seniors keep up with rising inflation, will be completely eliminated for an estimated 9.9 million seniors due solely to disproportionately rising increases in Medicare Part B premiums by the year 2012, according to a new study released today by TREA Senior Citizens League.

As a result, the study finds that as many as 20 percent of those receiving Social Security today will receive monthly checks that fail to increase year-to-year to help keep pace with inflation, as it has for decades.

The study also shows that the effects of Medicare Part B (which pays for doctors' visits, medical tests and outpatient hospital care) on the COLA will disproportionately impact lower income seniors.

Women will be more negatively affected than men, since women often receive smaller Social Security checks.

Although lower-income seniors would be affected first, seniors with average benefits today would also be affected by 2016.

As an example, the COLA has increased less than 14 percent over the past 5 years, but Medicare Part B premiums have skyrocketed by almost 60 percent during the same time span. These trends will continue to deteriorate with each passing year, leaving poorer seniors on their own to pay for all other inflationary expenses such as increases in the cost of energy, food, and transportation.

"This is a very dangerous and worrisome development," said Ms. Shannon Benton, Executive Director of TREA Senior Citizens League. "Many of our older, more vulnerable citizens are facing the prospect of very real hardship because of their declining spending power - and this study raises serious concerns about their ability to pay for the basic necessities of life."

A majority of the 48 million Americans aged 65 and over who receive a Social Security check depend on it for at least 50 percent of their total income, and one in three seniors - roughly 16 million Americans - rely on it for 90 percent or more of their income. As many as twelve percent of seniors are already living below the poverty line.