Will Social Security beneficiaries get a fourth stimulus check?
As inflation rises rapidly, the Senior Citizens League is calling on Congress to send those on Social Security a fourth stimulus check worth $1,400.
Earlier this fall, the Senior Citizens League (TSCL), a non-partisan advocacy group, started a pressure campaign to push Congress to send those receiving Social Security additional stimulus money. In a letter to leaders of Congress, TSCL Chairman Rick Delaney called for a one-off $1,400 Social Security stimulus payment for seniors.
Delaney urged members to send a special $1,400 stimulus check to those receiving Social Security benefits. Such a measure could help defray the costs associated for some seniors from the 2022 cost-of-living adjustment, which was the highest in 40 years, pushing them into a higher tax bracket. The letter began by highlighting that the organization has heard from thousands of seniors “who have exhausted their retirement savings” and started “eating just one meal a day” or “cutting their pills in half because they can’t afford their prescription drugs.”
NEW: Inflation is being blamed on workers and government spending. The real culprit? Corporate greed.— More Perfect Union (@MorePerfectUS) November 23, 2021
In our new episode of The Class Room we dug into financial reports to investigate the REAL reason prices are going up.
Hint: corporate profits have never been higher. pic.twitter.com/mPmCeDDNiJ
This is all in reaction to the high levels of inflation that the American economy is dealing with. Prices across the country are reaching record highs, and for those on a fixed income like Social Security, they are seeing rapid decreases in their purchasing power. The Bureau of Labor Statistics has reported that since October 2020, consumers are paying on average 6.2 percent more across the market. Prices for food are up 5.3 percent, while energy costs are up more than thirty.
Social Security Administration announced a historic COLA increase
The campaign began before the announcement of the 5.9 percent Cost-of-living adjustment, but still, the organization has continued arguing that it is not enough. Earlier this year, the organization began to hear reports from thousands of seniors who said they were experiencing extreme financial hardship as prices began to trend upward. Many have expressed a feeling of abandonment from the government telling TSCL “our government has forgotten about us.”
Researchers with the TSCL have found that costs for seniors have outpaced COLA increase. While over the last twenty-one years, "COLAs have raised Social Security benefits by 55 percent," the costs for housing and healthcare increased 118 and 145 percent, respectively.
Stimulus check for Social Security beneficiaries
On Friday 19 November, the House of Representatives passed the Build Back Better Act. While it does not include a stimulus check for those on Social Security it does include some benefits for seniors. These include the expansion of Medicare to include hearing services, and provisions that will grant the government power to negotiate a limited about of drug prices with pharmaceutical companies each year.
We are experiencing the strongest economic recovery in the world.— President Biden (@POTUS) November 23, 2021
Even after accounting for inflation, our economy is bigger and families have more money in their pockets than they did before the pandemic.
America is the only major economy in the world that can say that.
Now, the bill will head to the Senate where its fate is extremely unclear. Under pressure from more conservative Democrats, like Joe Manchin of West Virginia, those leading the bill have been forced to consider taking some aspects out of the legislation. To pass every Democrat will need to vote on it and at this point, Joe Manchin and Kyrsten Sinema have said they would like more time to review the report that will be published by the Congressional Budget Office.
Do lawmakers agree?
The petition to raise support for the bill has reached over a million signatures, but there have been no national polls conducted to gauge the public’s opinion of the idea. So far, leaders on Capitol Hill have been silent on their support or opposition to a targeted stimulus check for seniors.
It also seems that leaders pushing for the Build Back Better Act are worried about shifting focus away from the proposal by proposing the sending of another direct payment. The TSCL is aware of this political constraint and hopes that it can become a major issue next year garnering Congressional support if the proposal gains enough support among seniors.
However, the Center on Medicare and Medicaid announced a 14.5 percent increase in the price of the Medicare Part B premium which is subtracted from a Social Security beneficiary's check each month. From 2020 to 2021, the price only increased two percent, showing the impact that inflation is having on the healthcare market.
After the increase was announced, Mary Johnson, a Social Security and Medicare policy analyst urged leaders to take action and warned that “The Part B increase from $148.50 to $170.10 per month is the highest since 2016 and will consume the entire annual cost of living adjustment (COLA) of Social Security recipients with the very lowest benefits, of about $365 per month."
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