Fed wants to increase inflation

[fudion14]

What do you think about the Fed wanting to increase the rate of inflation?   Other than the housing market, it seems like prices are beginning to rise on their own (i.e. utility costs, etc..)

[animikokala]

When they require, by law, all jobs to raise salaries to match inflation, then sure, I'll support inflation increases.  I get so tired of not getting a raise year after year because my job (The State of Tennessee Gov't, at that) "couldn't afford it", but health insurance rates, gas, food, everything, would increase year after year.

[Annella]

When they require, by law, all jobs to raise salaries to match inflation, then sure, I'll support inflation increases.  I get so tired of not getting a raise year after year because my job (The State of Tennessee Gov't, at that) "couldn't afford it", but health insurance rates, gas, food, everything, would increase year after year.

How do you think the Seniors feel?  There COLA (Cost of Living Allowance) got frozen starting 2010.  This is the first time in 37 years.  Congress is talking about freezing it for 2011 too.  Now these poor people live on such a tight income as it is, and they're rent, utilities, food, etc., still keeps going up.  The first thing Obama did is stick it to the people who could afford it the least.  Then Medicare took away benefits like eye care, dental, and some annual tests, and raised their co-pays on doctor visits and Meds., and then raised their Medicare premiums.  Everything keeps going up, but their income stays the same.

The $250. he promised them as a one time payment for each year to offset the loss of the COLA, got taken from them too at the last moment.  These poor people can hardly afford to live. 

[jordandog]

The $250. he promised them as a one time payment for each year to offset the loss of the COLA, got taken from them too at the last moment.

No, that is incorrect on a couple points. The $250 is for Medicare recipients, not just seniors, who have gone into the 'donut hole' period/gap in coverage on prescriptions. It is not under anything to do with a COLA. I have probably personally taken 30-40 of these to banks for cashing/deposit from my patients alone who have received them and are unable to get out of the hospital or their homes themselves. Note:I am NOT saying or implying that seniors and others are NOT getting the screws put to them. They certainly are, big time.

Here is more info:If you have Medicare prescription drug coverage, and aren’t already getting Medicare Extra Help, Medicare will automatically send you a one-time $250 rebate check after you reach the coverage gap. The Explanation of Benefits notice, which your drug plan mails to you each month when you fill a prescription, will tell you how much you’ve spent on covered drugs and whether you’ve entered the coverage gap.

The first checks will be sent June 10, three weeks earlier than scheduled, to about 80,000 people. The Centers for Medicare and Medicaid Services said checks will be mailed monthly throughout the year as Medicare beneficiaries hit the donut hole. Beneficiaries can expect to receive their check within 45 days after that. The Department of Health and Human Services estimates that about 4 million seniors will get the rebates in 2010.
from Saving to Invest site for seniors - other info on medicare recipients et al can be found by searching

[Annella]

The $250. he promised them as a one time payment for each year to offset the loss of the COLA, got taken from them too at the last moment.

No, that is incorrect on a couple points. The $250 is for Medicare recipients, not just seniors, who have gone into the 'donut hole' period/gap in coverage on prescriptions. It is not under anything to do with a COLA. I have probably personally taken 30-40 of these to banks for cashing/deposit from my patients alone who have received them and are unable to get out of the hospital or their homes themselves. Note:I am NOT saying or implying that seniors and others are NOT getting the screws put to them. They certainly are, big time.

Here is more info:If you have Medicare prescription drug coverage, and aren’t already getting Medicare Extra Help, Medicare will automatically send you a one-time $250 rebate check after you reach the coverage gap. The Explanation of Benefits notice, which your drug plan mails to you each month when you fill a prescription, will tell you how much you’ve spent on covered drugs and whether you’ve entered the coverage gap.

The first checks will be sent June 10, three weeks earlier than scheduled, to about 80,000 people. The Centers for Medicare and Medicaid Services said checks will be mailed monthly throughout the year as Medicare beneficiaries hit the donut hole. Beneficiaries can expect to receive their check within 45 days after that. The Department of Health and Human Services estimates that about 4 million seniors will get the rebates in 2010.
from Saving to Invest site for seniors - other info on medicare recipients et al can be found by searching

No, I'm not incorrect........

I'm talking about the $250.00 Stimulus payment that was to go to "every" SSI recipient to offset the absence of COLA for 2010.  It got voted down.....I think in June of this year.  It had nothing to do with Medicare or reaching the plateau of Medicare or Medicaid Services.  The Department of Health and Human Services is a totally different thing.

What I'm talking about is a Stimulus payment.  Just Google $250.00 Stimulus for SSI Recipients.

[lvstephanie]

What do you mean the Fed wants to increase inflation? Inflation is just a term for the state of the economy, not something the Fed can change directly... Inflation just means that the price-to-value ratio has just increased in the market. And the P::V can be for any commodity, whether it be a consumable good, a service, or even wage increases. The Fed can pump more money into the economy and thereby it will probably have an inflationary pressure to increase prices, but it doesn't necessarily mean that that is what will happen.

And the problem with COLAs is that they need to estimate how inflation will increase. Sometimes a COLA is set at the time the bill was written to, say, 5% a year, regardless of what the actual inflationary rate increase was. When the government does this, they tend to predict a little more on the high side, since (they feel) it'd be worse to not have adjusted enough and have people suffer. But what happens is that overspending on COLA means that the government is paying out more than it is collecting. The amount of money is also effected by inflation; the higher the inflation, the more goods cost (and hence the more sales taxes are collect for each unit of good sold) and the higher people's incomes are (as people get paid more for inflationary wages, the more income taxes are collected). But if a COLA is set for 5% and the inflationary rate only increases by 2%, the government has to pay out more for the adjustments than the inflationary amount of taxes were collected. Thus if the government is looking to save money, they'll be more conservative on what rate to increase COLA payments to, and during times when inflation is negligible like it is now (believe it or not, inflation rate is currently only around 1%) the government may just decide to freeze COLA increases until the inflationary rate starts to rise again.

I think inflation is a very bad move, since it really hurts people on a fixed income the most. When inflation starts to spiral higher, people's wages tend to increase to keep pace with the inflationary prices of goods and services. But people of fixed income (eg those that have retired and are living off of their savings along with the unemployed) won't get that increase in pay, and will therefore end up spending more for the same items.

[jordandog]

It had nothing to do with Medicare or reaching he plateau of Medicare or Medicaid Services.  The Department of Health and Human Services is a totally different thing.

Okay, I haven't yet found concrete info as far as $250 for all, but will continue looking later on, so you are probably correct on that. Unless I am reading the above wrong, they are the same thing - the Department of Health and Human Services is in charge of/oversees Medicare and Medicaid. Take a glance at this site and you will see it right at the top:
http://www.cms.gov/

[Annella]

What do you mean the Fed wants to increase inflation? Inflation is just a term for the state of the economy, not something the Fed can change directly... Inflation just means that the price-to-value ratio has just increased in the market. And the P::V can be for any commodity, whether it be a consumable good, a service, or even wage increases. The Fed can pump more money into the economy and thereby it will probably have an inflationary pressure to increase prices, but it doesn't necessarily mean that that is what will happen.

And the problem with COLAs is that they need to estimate how inflation will increase. Sometimes a COLA is set at the time the bill was written to, say, 5% a year, regardless of what the actual inflationary rate increase was. When the government does this, they tend to predict a little more on the high side, since (they feel) it'd be worse to not have adjusted enough and have people suffer. But what happens is that overspending on COLA means that the government is paying out more than it is collecting. The amount of money is also effected by inflation; the higher the inflation, the more goods cost (and hence the more sales taxes are collect for each unit of good sold) and the higher people's incomes are (as people get paid more for inflationary wages, the more income taxes are collected). But if a COLA is set for 5% and the inflationary rate only increases by 2%, the government has to pay out more for the adjustments than the inflationary amount of taxes were collected. Thus if the government is looking to save money, they'll be more conservative on what rate to increase COLA payments to, and during times when inflation is negligible like it is now (believe it or not, inflation rate is currently only around 1%) the government may just decide to freeze COLA increases until the inflationary rate starts to rise again.

I think inflation is a very bad move, since it really hurts people on a fixed income the most. When inflation starts to spiral higher, people's wages tend to increase to keep pace with the inflationary prices of goods and services. But people of fixed income (eg those that have retired and are living off of their savings along with the unemployed) won't get that increase in pay, and will therefore end up spending more for the same items.

Your correct......  Also, COLA is figured on a different CPI (Consumer Price Index) for SSI benefits, than those still working.  The CPI does not factor in raising rents, food, or utilities.  What a lousy formula!  There has been legislature put before the house to apply the same formula for SSI recipients as those who are working and paying into the system.

Every time the Gov't. employees get a COLA raise, SSI recipients are to get the same raise (Federal across the board).  Last year, Gov't. workers got a COLA raise, and SSI recipients got the shaft.

[franlee46]

When they require, by law, all jobs to raise salaries to match inflation, then sure, I'll support inflation increases.  I get so tired of not getting a raise year after year because my job (The State of Tennessee Gov't, at that) "couldn't afford it", but health insurance rates, gas, food, everything, would increase year after year.

How do you think the Seniors feel?  There COLA (Cost of Living Allowance) got frozen starting 2010.  This is the first time in 37 years.  Congress is talking about freezing it for 2011 too.  Now these poor people live on such a tight income as it is, and they're rent, utilities, food, etc., still keeps going up.  The first thing Obama did is stick it to the people who could afford it the least.  Then Medicare took away benefits like eye care, dental, and some annual tests, and raised their co-pays on doctor visits and Meds., and then raised their Medicare premiums.  Everything keeps going up, but their income stays the same.

The $250. he promised them as a one time payment for each year to offset the loss of the COLA, got taken from them too at the last moment.  These poor people can hardly afford to live. 

Hi Annella,
I am one of the seniors living on a fixed income with no COLA for this year and I did not know about next year boy how do we manage that change piggy bank will come in handy I am looking for other Health Ins to supliment my Medicare that is an interesting proposition I can not afford anything I just try to keep positive and I keep looking.
 

[Annella]

It had nothing to do with Medicare or reaching he plateau of Medicare or Medicaid Services.  The Department of Health and Human Services is a totally different thing.

Okay, I haven't yet found concrete info as far as $250 for all, but will continue looking later on, so you are probably correct on that. Unless I am reading the above wrong, they are the same thing - the Department of Health and Human Services is in charge of/oversees Medicare and Medicaid. Take a glance at this site and you will see it right at the top:
http://www.cms.gov/

It's not for everyone......just for SSI recipients who were shafted on the COLA for the first time in 37 years.  It was suppose to be a one time payment to offset the missing COLA.  It's different.  The Stimulus was done completely away with (at least for this year).  They are trying to pass it again for sometime the end of this year, or the beginning of next year.  It looks like COLA will be frozen again for SSI recipients in 2011.

While Medicare and Medicaid can have their premiums raised and taken out of everyones SSI checks, the COLA is different.  I do know there is compensation for those who have exceeded their out of pocket expenses and have reached a ceiling.  However, I didn't know it was the same amount as the proposed Stimulus.

I know a lot of Seniors that are just trying to pay for the bare necessities.  A fixed income only goes so far for them and no further......it's so sad.  

[Annella]

When they require, by law, all jobs to raise salaries to match inflation, then sure, I'll support inflation increases.  I get so tired of not getting a raise year after year because my job (The State of Tennessee Gov't, at that) "couldn't afford it", but health insurance rates, gas, food, everything, would increase year after year.

How do you think the Seniors feel?  There COLA (Cost of Living Allowance) got frozen starting 2010.  This is the first time in 37 years.  Congress is talking about freezing it for 2011 too.  Now these poor people live on such a tight income as it is, and they're rent, utilities, food, etc., still keeps going up.  The first thing Obama did is stick it to the people who could afford it the least.  Then Medicare took away benefits like eye care, dental, and some annual tests, and raised their co-pays on doctor visits and Meds., and then raised their Medicare premiums.  Everything keeps going up, but their income stays the same.

The $250. he promised them as a one time payment for each year to offset the loss of the COLA, got taken from them too at the last moment.  These poor people can hardly afford to live. 

Hi Annella,
I am one of the seniors living on a fixed income with no COLA for this year and I did not know about next year boy how do we manage that change piggy bank will come in handy I am looking for other Health Ins to supliment my Medicare that is an interesting proposition I can not afford anything I just try to keep positive and I keep looking.
 

My heart goes out to you.  I know there are so many in the same boat.  I'm considered a Senior by age, but not yet to retirement age.  My grandma was on SSI while she raised me.  Bless her heart.  She did all the things she could to stretch the dollar. 

[animikokala]

And of course, it's not just seniors on SSI; those with disablities preventing them from working suffer as well.  My father (who is only 44) has suffered from epilepsy since he was 18.  Medicare doesn't cover the full cost of his medications (well over $800/month worth), and they have trouble making ends meet.  It's a pity none of these politicians understand what it's REALLY like for both the average person, and especially what's it's like those who need that extra help. 

[Annella]

And of course, it's not just seniors on SSI; those with disablities preventing them from working suffer as well.  My father (who is only 44) has suffered from epilepsy since he was 18.  Medicare doesn't cover the full cost of his medications (well over $800/month worth), and they have trouble making ends meet.  It's a pity none of these politicians understand what it's REALLY like for both the average person, and especially what's it's like those who need that extra help. 

Yes, your correct.  I didn't mean to leave out the disabled by no means.

[animikokala]

Yes, your correct.  I didn't mean to leave out the disabled by no means.

You don't seem the type to do so. 

To fix this, all these wealthy politicians should have to pull the money out of their own pockets to fund this cost of living increase for anyone on a fixed income, instead of trying to "fix" the country. (I.E. fill their own pockets a bit more.)

No politician that campaigned for their job really has the country's best interest at heart; the best kind of leader is the person who doesn't want the job.

[Annella]

Yes, your correct.  I didn't mean to leave out the disabled by no means.

You don't seem the type to do so. 

To fix this, all these wealthy politicians should have to pull the money out of their own pockets to fund this cost of living increase for anyone on a fixed income, instead of trying to "fix" the country. (I.E. fill their own pockets a bit more.)
No politician that campaigned for their job really has the country's best interest at heart; the best kind of leader is the person who doesn't want the job.

Thank you

Your absolutely right.  They should all have to retire on the same SSI benefits that we do also.  The same program.  Well, they have slapped Seniors in the face, and the Disabled.  Coming this November there will be some changes.  It's already happening. 

What gets me is the biggest population is retiring (baby boomers) soon, and they will be a force to be reckoned with at the polls.  They can only "slap" them so many times.  Anybody that's on SSI will be a force to be reckoned with for the first time, as this will be the biggest demographic we've seen in a long time with some clout, because of the numbers.