Skip to main content

View Diary: Krugman On The Proposed Deal (341 comments)

Comment Preferences

  •  Thank you, thank you for this (9+ / 0-)

    piece of sanity.  I agree that introducing the chained CPI is BS - BUT POTUS won't be able to get UI extended after 1/1/13.  It seems to me that the severity of America's problem with long term unemployment isn't addressed nearly enough. Not nearly.  

    Yes, I realize that the chained CPI has nothing to do with the deficit.  But after 1/1, a lot of money is leaving the economy and recession could be very much in play. This is no joke.  

    •  And, even if he can get it extended, (3+ / 0-)
      Recommended by:
      democrattotheend, Hedwig, Kathy S

      how long will that take?  Maybe, if they move at warp speed, 2 to 3 weeks.  Those are real people out there, who will start missing those benefits from day 1.  

      •  No one will start missing those benefits from Day (0+ / 0-)

        1.

        If the chained CPI is passed, that means that next year, the benefits will rise at about 0.3% lower than otherwise. However, when you consider the relationship of Medicare premiums to SS benefits, the actual difference in benefits will likely be less.

        For example, in January I will get $9 more in SS benefits, but pay $5 more for my Part B premium for a total of $4 more per month next year. My understanding is that the chained CPI would result in about 0.3% less than the current calculations. That means I would have received $.27 (27 cents less per month). Even looking at the issue over years, which seems to be where the problem is - lower total benefits after a number of years), we do not know exactly what the situation would be because if the ACA begins to reduce healthcare costs, the rise in Medicare premiums would also slow. If the ACA reduces healthcare costs by even 0.3%, there would be essentially no difference in the actual amount seniors receive.

        In addition, as I understand it, Obama has proposed that the change in the COLA be indexed so that the lower income seniors would receive a higher increase in benefits. Therefore, I will wait to see what the actual proposals are before getting too bent out of shape.

        You can't scare me, I'm sticking to the Union - Woody Guthrie

        by sewaneepat on Wed Dec 19, 2012 at 05:09:32 AM PST

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site