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MN Social Security Recipients Could Lose $2 Billion

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Wednesday, February 20, 2013   

ST. PAUL, Minn. - As the debate continues in Washington on what to do with Social Security, the chorus of voices saying "Stay away from the chained Consumer Price Index" is growing louder.

As a way to cut costs, some want to switch to that method for calculating Social Security payments. But Michele Kimball, executive director of AARP Minnesota, said that would mean reduced benefits, even for those already on the program.

"We believe this is actually going to set our seniors back," she said. "Going with a chained CPI is not the answer, and there are other ways that you can look at controlling Social Security costs and strengthening it for the future. The chained CPI is absolutely not the answer."

In Minnesota, nearly 660,000 seniors receive Social Security. It's estimated that they would lose nearly $1.9 billion in the next decade if the chained CPI method is adopted.

One group that would be hit especially hard by any reduction in benefits is older veterans, Kimball said. Many already are on fixed incomes and also facing the prospect of fewer VA benefits.

"They gave so much to our country, and the VA is actually continuing to be subject to cuts as well," she said. "And so, for our veterans it would almost be a double whammy of VA cuts and Social Security cuts - and that's just wrong."

Veterans' groups that have voiced opposition to the chained CPI include Veterans of Foreign Wars, American Legion, Vietnam Veterans of America and Disabled American Veterans.

Social Security is not the only program Congress is considering changing. For Medicare, one proposal would raise the eligibility age from 65 to 67. In addition to not producing any real savings, Kimball said, it would put more seniors at risk going without health insurance, no matter how ill. She cited as an example the sister of an AARP volunteer who had cancer but no coverage.

"Her breast cancer went untreated," Kimball said. "She just didn't have the money to go and see her doctor - and sadly, she died within months of enrolling in Medicare. So, if we push the eligibility age back further, there will undoubtedly be more stories like this."

That story was shared by the volunteer during a meeting this week in which AARP discussed its concerns about Medicare and Social Security with Sen. Al Franken, D-Minn.

More information on AARP's stance is online at aarp.org.



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