Social Security & Medicare debates are about to heat up

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from AARP,

In the halls of government within Washington, DC, the debate about the future of your Social Security and Medicare benefits continues to heat up.

On Capitol Hill and within the Obama Administration, these is continuing discussion about the possible implementation of what they call “chained CPI” legislation which will significantly cut the cost of living adjustments (COLAs) you receive each year for your Social Security benefits as well as other changes which will also cut your future Medicare benefits.

This “chained CPI” legislation … if passed … will cut more than $14,000 in Social Security benefits over the life of the average beneficiary. Women stand to lose even more, since they live longer than men on average. And disabled veterans are getting the rawest deal. They stand to lose around $32,000 … since this proposal will cut both their Social Security and veterans benefits.

And when it comes to your Medicare benefits, too many politicians would rather just cut your benefits and make you pay more for health care rather than tackling the high prices, inefficiencies and fraud that are driving up the costs of your healthcare.

Social Security and Medicare are promises made to those who work throughout their lives and pay into thee programs with the expectation that the benefits will be there when they are needed in retirement. Let’s hold our elected leaders to this promise and protect your benefits — the benefits that you have earned and paid into.

Bottom line: Cost-of-living adjustments would be lower with the chained CPI than with the plain old CPI. So depending on which formula is used, the amount of your Social Security payments could change over time.

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