Cherry Hill, NJ-Rep. Donald Norcross (NJ-01) today unveiled new legislation to help seniors struggling to balance the high cost of living with spiraling Medicare premiums.

“Seniors are among our most valued citizens. They worked hard their whole lives and paid into the very system that’s now supposed to be supporting them in their retirement. Instead, they’re being denied a raise because of a flawed government formula. That’s just wrong,” said Rep. Norcross.

As part of his legislative proposal, Rep. Norcross is calling for a Social Security Cost-of-Living-Adjustment (COLA) that more accurately reflects goods and services on which seniors spend their money. Currently, the COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That formula evaluates the entire economy, including infant & toddler apparel, nursery care, toys, and school fees.

“Why should seniors be saddled with the ripple effect of things they don’t even buy? As a result, this is now the third time since 2011 that our seniors haven’t seen a pay raise (COLA). That’s unacceptable. Many in Washington have proposed privatizing Social Security as the best way to put money back in the hands of seniors. I disagree. That is why today I am proposing a different plan that would not privatize, but would put more money back in the pockets of seniors,” said Rep. Norcross.

Under Rep. Norcross’ legislation, future COLAs would be based on the price of goods and services seniors actually buy, a formula known as Consumer Price Index for the Elderly (CPI-E).

Complicating the financial burdens of seniors are Medicare premiums which have gone up 88% since 2001. And in 12 of last 15 years, there has either been no COLA or more than 30% of the COLA increase has been swallowed up by Medicare premium increases.

“What an insult to our seniors. Even when they do get a pay raise (COLA), most of the time, it gets devoured by higher Medicare premiums. That’s no way for our parents and grandparents to live,” said Rep. Norcross.

To ensure seniors receive more COLA in their pockets, Rep. Norcross’ plan would ensure seniors never pay more than 30% of their COLA into Medicare premiums.

“Our seniors should be enjoying their golden years, not be consumed with worry over how they’ll pay their bills and stay in their homes. It’s time we fixed the system that has turned its back on our seniors,” said Rep. Norcross.

Congressman Norcross’ legislation has the support of a leading senior advocates.

"Rep. Norcross’ legislation would require the Social Security Administration to base future cost-of-living adjustments on the Consumer Price Index for the Elderly (CPI-E), which much more accurately reflects the cost of things retirees purchase, including health care. It would also limit Medicare premium increases," said Richard Fiesta, Executive Director of the Alliance for Retired Americans, which recently gave Rep. Norcross a score of 100% for his votes in Congress on senior issues.  "The bill will get seniors the COLA they earned and ensure it isn't immediately consumed by higher Medicare premiums."

Camden County Freeholder Carmen Rodriguez, liaison to the Camden County Health Department said, “We are constantly working with seniors who are on a fixed-income and struggling to pay the bills on a month to month basis. Common-sense reforms are needed that will create a stable financial environment for the residents we service on daily basis and residents that are dependent on the federal safety-net.”

Rep. Norcross plans to introduce his legislation when the U.S. House of Representatives reconvenes next month.

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Congressman Donald Norcross is a member of the House Armed Services Committee and the House Budget Committee, and serves as Assistant Whip in the 114^th Congress.