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No Social Security COLA For 2011 – Again

From an outraged Associated Press:

No Social Security COLA expected for 2011

By Stephen Ohlemacher, Associated Press Writer
October 10, 2010

WASHINGTON – As if voters don’t have enough to be angry about this election year, the government is expected to announce this week that more than 58 million Social Security recipients will go through another year without an increase in their monthly benefits.

It would mark only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year…

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s. Based on inflation so far this year, the trustees who oversee Social Security project there will be no COLA for 2011.

Never mind that anyone who has ever tried to buy groceries – or indeed anything – of the last several years knows that the current administration has been lying its collectivist head off about inflation.

It’s a very easy way to save billions.

The projection will be made official on Friday, when the Bureau of Labor Statistics releases inflation estimates for September. The timing couldn’t be worse for Democrats as they approach an election in which they are in danger of losing their House majority, and possibly their Senate majority as well…

And after all, how this helps or hurts the Democrats is all that matters to the Associated Press.

A little more than 58.7 million people receive Social Security or Supplemental Security Income. The average Social Security benefit is about $1,072 a month.

This is a stunning figure in its own right.

Social Security recipients got a one-time bonus payment of $250 in the spring of 2009 as part of the government’s massive economic recovery package.

And, as we just learned, at least 89,000 of these checks went to people in jail or in their graves.

President Barack Obama lobbied for another one last fall when it became clear seniors wouldn’t get an increase in monthly benefit payments in 2010.

Congress took up the issue, but a proposal by Sen. Bernie Sanders died when 12 Democrats and independent Sen. Joe Lieberman of Connecticut joined Senate Republicans to block it. Sen. Olympia Snowe of Maine was the only Republican to support the second bonus payment

Don’t worry, a way will be found to give away more of the taxpayers’ money.

Mr. Obama doesn’t want to tick off seniors before his election in 2012. They have long memories.

(Thanks to Proreason for the heads up.)

This article was posted by Steve on Sunday, October 10th, 2010. Comments are currently closed.

8 Responses to “No Social Security COLA For 2011 – Again”

  1. proreason says:

    0% Social Security COLA adjustment for 2011 now semi official:


    I posted this fact weeks ago. The annual adjustment isn’t based on the common CPI indicators. It is based on whether a variation of CPI is higher in Q3 than it was in ANY PRIOR YEAR. And since it didn’t break through 2008, no COLA adjustment for 2011. (note: it’s possible there will be no adjustement in 2012 either. And if there is one, it won’t equal the true increase in cpi either, because cpi hasn’t reached the 2008 peak yet, and the 2012 adjustment will only be part of the increase during 2011. Sweet, huh?)

    This is going to be devastating for the Democrats, so it won’t surprise me if they reconvene Congress to pass some sort of a one-time payment to trick people into thinking they are getting something valuable.

    But just so you will know, let’s assume they authorize a one-time $250 payment. That will be worth exactly $250, which is virtually nothing. But let’s assume your monthly payment is 1200 today, and that you got a 2% adjustment instead of a one-time $250 payment. The one-time value of that very modest $24 per month adjustment is about $4,000, because that is what you would need to have in the bank to be able to draw $24 per month for the next 20 years (at 4% interest). So, there is really no comparison between a token one-time payment and even a very modest permanent adjustment.

    But don’t be pissed off at Obamy or anything. It’s Bush’s fault of course. The Moron has absolutely no control over anything that destroys your life…..but total control over everything that helps you. That’s how Big Government works.

    And oh yeh, expect the cost of medicare to go up. It’s isn’t tied to the same indicator.

    And of course, expect the cost of medigap policies to go WAY UP, because of Obamycare.

    And the overall cost of Part D is probably going to go way up for 2011 for most people as well, since your loving government is increasing the “gap” remibursements from 0% to 50%. That will be a good thing for some people who get into the gap….but if you don’t, you will pay more, probably a lot more. The reason is that the insurers will lose money because of the gap, and they will have to get recoup by increasing the prices before you get to the gap. Chalk it up to your government working for you. Bureaucrats are idiots and they live in a dream world. They have no idea how the market will react to their nutty edicts. (The only other option, btw, is for the government to subsidize Part D to a greater extent. If that is what they do, the overall price may appear stable. Instead, you children will have to pay the tab. You know, the kids who will be living in tents anyway so that Union thugs can keep their platinum pensions.)

  2. oldpuppydixie says:

    TRANSLATION: Social security recipients are FAR more likely to be republican voters than democrat. So why give people who are going to vote republican ANYHOW, extra money!!! Best to save it for the DEMOCRAT voting blocks…blacks, illegals and union workers.

  3. U NO HOO says:

    “And of course, expect the cost of medigap policies to go WAY UP, because of Obamycare.”

    Aetna is out of the Medicare business effective 1*1*11. Got our letter last week. So, we search for a new company from the list Aetna sent us.

    One payor? Looks like it is coming our way.

    • proreason says:

      It isn’t complicated at all.

      1. Medigap policies pay for Medicare deductables and co-pays.
      2. Obamycare has reduced Medicare funding by something like 500 Billion over 10 years.
      3. Either doctors have to accept less in payment, or copays and deductables have to go up.
      4. If doctors accept less in payment, they will offer less in service.
      5. One of three things will happen:
      5a. your costs are going to increase dramatically, or
      5b. the services you receive are going to decrease dramatically, or,
      5c. if you live in Bizzoliberal-world, doctors are going to begin working for free.

      My money is on 5a and 5b

      What really NEEDS to happen is d.

      5d. The political children / criminals have to be evicted from there offices and adults have to take over.

      This is why I’m becoming more and more interested in Chris Christie. He is the only person person so far who has shown authoritatively that he can be an adult in a poisoned political environment, and succeed despite the massed opposition of powerful interests. Pawlenty and Mitch Daniels have each done well, but not in the teeth of angry mobs fighting to protect their own ill-gotten lucre. What Christie has done in one year is amazing. He seems to have a unique ability to explain what he is doing and overcome the poisonous lies of rich and thuggish opponents.

  4. Mae says:

    To go over some payments and reimbursements for a recent procedure, $722.21 was the total charge. $200.46 was paid by my Medicare insurance provider and I paid $39.02 for a total of $239.48 to the radiologists. They had to eat $482.73. Even if they padded the total, and I’m definitely not saying they did, that’s a pretty large amount to have to give to “charity.” Not being independently wealthy, the $722.21 would have been difficult for me to pay, though I could have done it; but any further expenditures past that (and unfortunately there are many more such expenditures coming up) I will not be able to cover the full amount. But why, exactly, should doctors have to keep me on their rolls? I like it because I want to live without discomfort and pain or just live, period. So, what am I saying? I’m glad that my physicians are still keeping me on, but see the reasonableness in their not doing so. Between that proverbial rock and hard place.

    • proreason says:

      All of the numbers are fantasies, both for Medicare and private insurance.

      Reimbursements are totally disconnected from costs.

      The official version is that Medicare under-reimburses by 18%, but that is prior to Obamycare. What that means is that private insurers and medical professionals increase their prices FOR OTHER PEOPLE to recover that 18%. But the 18% will soon go up. It’s a huge of hidden tax that everybody with private insurance pays.

      Doctors pull their gross fees out of a hat. Apparently they think they might occassionally get luck and score a windfall. But it never happens becuase the insurers have computer systems to prevent it.

      My wife had an operation a couple of years ago for which the gross fees were over $400,000. That was for two surgeons, an anethesiologist, 2 days in a hospital and associated tests and services, and a big chunk for devices to rebuild her back. Yes, they all absolutely pad the prices. Insurance reimbursed about $90,000. The true costs were something far less than 90K. One provider asked for $17,000 and was paid $300. Remove all of the government mandates that have to be paid for by jacking up everybody’s insurance rates, and you can subtract 10K from the 90K. Remove the inflated cost of malpractice insurance and you can subtract another 10K. Remove medicare and private insurance fraud and you can subtract another 10K. The fair market cost of the procedure was probably in the neighborhood of 50K. They charged 400k but the real cost was 50K. Unreal you say? proreason got a deal you say? Hardly, I calculate that if I had saved the private insurance fees I’ve paid in my life (mostly via employers) and invested it at normal returns, I would have well over $1 million today. I could have paid for it out-of-pocket several times over. And I haven’t paid any more for insurance than other people have paid.

      Again, the prices and the costs of medical care are totally disconnected from reality. Medicare is only part of the problem. Obamy care will make it many times worse.

      All of it results from government intervention and because it is impossible for medical consumers to compare prices.

      If the government got out of the way, the cost of health care would drop like a rock, probably by 50% within a decade, and continue falling after that….just like the costs of plastic surgery and lasik eye surgery have done.

      Government causes 95% of the problems in this country. It’s our biggest enemy by far, and the only one that can destroy the country.

  5. U NO HOO says:

    “No Social Security COLA expected for 2011”

    I forgot to say, this is old news, we heard it in 2009.

  6. Reality Bytes says:

    Speaking of soda….

    (I’m not gonna do it. For SG. He’s got enough agida already).

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