Washington, D.C. - As Democrats assemble in Boston for the opening day of their quadrennial convention, Congresswoman Eddie Bernice Johnson is throwing her support behind new federal legislation designed to protect Social Security benefits for retirees and seniors in the state of Texas and across the nation.  Congresswoman Johnson, a longtime advocate of shoring up the nation’s Social Security system, has co-signed the “Social Security COLA Protection Act of 2004.”

“According to a new report by Democrats on the Joint Economic Committee, the new Republican Medicare bill could eat up a large piece of future Social Security COLAs and for some, even reduce the size of their Social Security check,” Congresswoman Johnson explained today. “To prevent this from happening, I am supporting the Social Security COLA Protection Act of 2004. Here’s why. It will make certain that no more than 25 percent of a Social Security recipient's annual cost of living increase, or COLA, could be taken away by increases in Medicare premiums.”

In fact, a new report concludes that when the new drug benefit is in place in 2007, almost one-quarter of Social Security beneficiaries will spend over 25 percent of their COLA to pay for the increases in Medicare premiums.  By 2014, that number will increase to 64 percent.

This Democratic bill would ensure that no more than 25 percent of a beneficiary’s annual COLA could be taken away by increases in Medicare premiums, including the existing "Part B" premium for outpatient care and the new "Part D" premium for prescription drugs.  In 2007, the legislation would help over 14 million Social Security recipients.   By 2014, it will help more than two-thirds of seniors and people with disabilities, approximately 23 million Americans.

“Without this legislation, a senior living in the 30th Congressional District of Texas with a monthly benefit of $500 could end up losing almost 60 percent of her Social Security COLA in 2007. That scenario is totally unacceptable,” Congresswoman Johnson said.  “This bill would make sure that COLAs could be used as originally intended - to pay for annual increases in food, clothing, housing and energy costs."

“We have long known that the Republican Medicare prescription drug law is a cruel hoax on America’s seniors and that it fails to reduce prescription drug prices,” Congresswoman Johnson lamented.  “Today, we learned that the refusal by the Republicans to control drug prices will lead to escalating Medicare premiums and cuts in seniors’ Social Security COLAs.”

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