Social Security up a few dollars

This year's cost of living increase is 2.7 percent. Medicare premiums will gobble up most of it. Still, folks say, a buck's a buck.

Like many others on Social Security, Jack Murphy never expects much from the annual cost of living increase. It doesn't begin to cover his rising expenses.

Murphy, 77, worked as a purchasing agent for the Catholic Diocese of New York, but during early years, the church didn't have to contribute to the Social Security system. As a result, he now receives only about $600 a month.

This year's 2.7 percent cost of living boost, announced Tuesday, will bring him another $16 or so, starting with his January check. Of course, Medicare will deduct an extra $11.60 at the same time, because doctor premiums are soaring.

Murphy just shrugs. "What can you do about it?" he says. An extra $4.40 a month might buy a beer at the Pier, but not much else.

Such are the grim equations that play out every October for low-income retirees. Social Security's cost of living increase keeps pace with the Consumer Price Index, but it doesn't keep up with medical expenses, which play a large role in many monthly budgets.

"With each passing year, medical-related costs and prescription drug costs are rising several times the rate of inflation," said Ron Pollack, director of FamiliesUSA, a Washington, D.C., advocacy group. "It makes health care, especially prescription drugs, increasingly unaffordable."

About 47-million disabled and older Americans receive Social Security. When the new cost of living kicks in, the average check will rise from $930 a month to $955, the Social Security Administration announced. After Medicare takes a bigger bite, that's a net $13.40 a month.

People with paidoff houses, comfortable pensions and investments face rising health care costs just like everyone else. But they have a larger buffer.

About half of people over 65 are more like Murphy: If it weren't for Social Security, they would fall below the poverty line. So they hustle and find help wherever they can.

Murphy lives in federally subsidized housing; he works part-time for minimum wage at the City of St. Petersburg Sunshine Center under another federal program. Until recently, he hawked the Sunday St. Petersburg Times on street corners.

Murphy enjoys his health but restricts his relaxation to television, the beach and walks to the Pier - anything that's free.

"That's where it goes bad," he says, of his tightening budget. "You don't have any money to go out and party."

Others are less fortunate, said Marilyn Greene, a counselor for Suncoast Community Mental Health.

"I have clients who get $1,000 a month (in Social Security) and pay $300 or $400 a month for drugs, even with the prescription drug discount cards" and programs that most drugmakers have to help the poor.

"People in their 80s thought Social Security was going to be there in retirement," Greene said. "Now they can't afford things they need to live."

Florida, like other states, has programs that help low-income older people pay their Medicare premiums. That way, when Social Security bumps up paychecks once a year, it won't turn around and deduct a big chunk of it for Medicare. But many people who would qualify don't sign up because they don't know about it, Greene said.

One program, called Special Low-Income Medicare Beneficiaries, pays monthly Medicare premiums for individuals with incomes up to $931 a month and couples with incomes up to $1,249. They can have a house, but no liquid assets more than $5,000 for an individual, $6,000 for a couple.

Another program, called Qualified Medicare Beneficiaries, pays Medicare copayments and deductibles in addition to the monthly premium. Individuals with incomes up to $776 a month can qualify, as can couples with incomes up to $1,041 a month.

"A lot of people don't know about this unless they get with a social worker," Greene said. "Some don't apply because they think it's welfare, or they worry about losing their house."

Florida Medicaid offices can provide information on the two programs, she said.

Investment income keeps Spring Hill resident Gil Williams from qualifying for state help. He figures the cost of living increase will net him about $11 after the new Medicare deduction. He'll take it.

"I might go out for dinner one more night a month. Up here we can do that for $11," he says. "I'll go to Perkins, or maybe Steak n Shake."

World and national headlines

© 2006 • All Rights Reserved • St. Petersburg Times 490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111 Contact the Times | Privacy Policy Standard of Accuracy | Terms, Conditions & Copyright