Friday, October 16, 2009

Quote of the Day: The Un-COLA

Rep. Jeff Flake on the proposed $250 bonus payment:
"If Congress doesn’t even have the political will to tell seniors that there will be no COLA this year because there was no inflation, what are the chances that we’re able to find hundreds of billions of dollars in Medicare cuts to pay for the healthcare bill?"

Many seniors may refer to their COLAs as a "raise", but the Cost Of Living Adjustment is merely a nominal adjustment for inflation. Seniors are actually better off without a COLA this year (accompanied by deflation) than had there been inflation plus an equivalent COLA increase.

The $250 is political redistribution at it's most crass.

And no, no serious person believes the reduction in Medicare will approach the order of magnitude promised by the administration.

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