I

106TH CONGRESS

1ST SESSION H. R. 1422

To require the establishment of a Consumer Price Index for Elderly Consumers to compute cost-of-living increases for Social Security and Medicare benefits under titles II and XVIII of the Social Security Act.

IN THE HOUSE OF REPRESENTATIVES

APRIL 14, 1999

Mr. SANDERS (for himself, Mr. NEY, Mr. BORSKI, Mr. FILNER, Mr. WEXLER,

Mr. OLVER, Mr. WEINER, Ms. KILPATRICK, Mr. SHOWS, Mr. HILLIARD,

Mr. HINCHEY, Mr. BROWN of Ohio, Mr. BROWN of California, Mrs.

CHRISTENSEN, Mr. CROWLEY, Mr. THOMPSON of Mississippi, Mr. ROMERO-BARCELO ́, Ms. PELOSI, Mr. STARK, Mr. KUCINICH, Mr. NADLER,

Ms. WOOLSEY, Mr. HASTINGS of Florida, Mr. OWENS, Mr. ABERCROMBIE, Mr. FARR of California, Ms. NORTON, Ms. LEE, Mr.

LATOURETTE, Mr. COYNE, and Mr. BONIOR) introduced the following

bill; which was referred to the Committee on Ways and Means, and in

addition to the Committees on Commerce, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each

case for consideration of such provisions as fall within the jurisdiction of

the committee concerned

A BILL

To require the establishment of a Consumer Price Index

for Elderly Consumers to compute cost-of-living increases

for Social Security and Medicare benefits under titles

II and XVIII of the Social Security Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Consumer Price Index

3 for Elderly Consumers Act’’.

4 SEC. 2. CONSUMER PRICE INDEX FOR ELDERLY CON5 SUMERS.

6 (a) IN GENERAL.—The Bureau of Labor Statistics

7 of the Department of Labor shall prepare and publish an

8 index for each calendar month to be known as the ‘‘Con9 sumer Price Index for Elderly Consumers’’ that indicates

10 changes over time in expenditures for consumption which

11 are typical for individuals in the United States who are

12 62 years of age or older.

13 (b) EFFECTIVE DATE.—Subsection (a) shall apply

14 with respect to calendar months ending on or after July

15 31 of the calendar year following the calendar year in

16 which this Act is enacted.

17 (c) AUTHORIZATION OF APPROPRIATIONS.—There

18 are authorized to be appropriated such sums as are nec19 essary to carry out the provisions of this section.

20 SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES.

21 (a) AMENDMENTS TO TITLE II.—

22 (1) IN GENERAL.—Section 215(i) of the Social

23 Security Act (42 U.S.C. 415(i)) is amended—

24 (A) in paragraph (1)(G), by inserting be25 fore the period the following: ‘‘, and, solely with

26 respect to any monthly insurance benefit pay-
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1 able under this title to an individual who has

2 attained age 62, effective for adjustments under

3 this subsection to the primary insurance

4 amount on which such benefit is based (or to

5 any such benefit under section 227 or 228) oc6 curring after such individual attains such age,

7 the applicable Consumer Price Index shall be

8 deemed to be the Consumer Price Index for El9 derly Consumers and such primary insurance

10 amount shall be deemed adjusted under this

11 subsection using such Index’’; and

12 (B) in paragraph (4), by striking ‘‘and by

13 section 9001’’ and inserting ‘‘, by section

14 9001’’, and by inserting after ‘‘1986,’’ the fol15 lowing: ‘‘and by section 3(a) of the Consumer

16 Price Index for Elderly Consumers Act of

17 1999,’’.

18 (2) CONFORMING AMENDMENTS IN APPLICABLE

19 FORMER LAW.—Section 215(i)(1)(C) of such Act, as

20 in effect in December 1978 and applied in certain

21 cases under the provisions of such Act in effect after

22 December 1978, is amended by inserting before the

23 period the following: ‘‘, and, solely with respect to

24 any monthly insurance benefit payable under this

25 title to an individual who has attained age 62, effec-
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1 tive for adjustments under this subsection to the pri2 mary insurance amount on which such benefit is

3 based (or to any such benefit under section 227 or

4 228) occurring after such individual attains such

5 age, the applicable Consumer Price Index shall be

6 deemed to be the Consumer Price Index for Elderly

7 Consumers and such primary insurance amount

8 shall be deemed adjusted under this subsection using

9 such Index’’.

10 (3) EFFECTIVE DATE.—The amendments made

11 by paragraph (1) shall apply to determinations made

12 by the Commissioner of Social Security under sec13 tion 215(i)(2) of the Social Security Act (42 U.S.C.

14 415(i)(2)) with respect to cost-of-living computation

15 quarters ending on or after September 30 of the sec16 ond calendar year following the calendar year in

17 which this Act is enacted.

18 (b) AMENDMENTS TO TITLE XVIII.—

19 (1) IN GENERAL.—Title XVIII of such Act (42

20 U.S.C. 1395 et seq.) is amended—

21 (A) in section 1814(i)(2)(B), by inserting

22 ‘‘(i) for accounting years ending before October

23 1 of the second calendar year following the cal24 endar year in which the Consumer Price Index

25 for Elderly Consumers Act was enacted,’’ after
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1 ‘‘for a year is’’, and by inserting after ‘‘fifth

2 month of the accounting year’’ the following:

3 ‘‘, and (ii) for accounting years ending after

4 October 1 of such calendar year, the cap

5 amount determined under clause (i) for the last

6 accounting year referred to in such clause, in7 creased or decreased by the same percentage as

8 the percentage increase or decrease, respec9 tively, in the medical care expenditure category

10 (or corresponding category) of the Consumer

11 Price Index for Elderly Consumers, published

12 by the Bureau of Labor Statistics, from March

13 of such calendar year to the fifth month of the

14 accounting year’’;

15 (B) in section 1821(c)(2)(C)(ii)(II), by

16 striking ‘‘consumer price index for all urban

17 consumers (all items; United States city aver18 age)’’ and insert ‘‘Consumer Price Index for El19 derly Consumers’’;

20 (C) in section 1833(h)(2)(A)(i), by striking

21 ‘‘Consumer Price Index for All Urban Con22 sumers (United States city average)’’ and insert

23 ‘‘Consumer Price Index for Elderly Con24 sumers’’;
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1 (D) in section 1833(i)(2)(C), by striking

2 ‘‘consumer price index for all urban consumers

3 (U.S. city average)’’ and insert ‘‘Consumer

4 Price Index for Elderly Consumers’’;

5 (E) in section 1834(a)(14)(D), by striking

6 ‘‘consumer price index for all urban consumers

7 (United States city average)’’ and insert ‘‘Con8 sumer Price Index for Elderly Consumers’’;

9 (F) in section 1834(h)(4)(A)(vi), by strik10 ing ‘‘consumer price index for all urban con11 sumers (United States city average)’’ and insert

12 ‘‘Consumer Price Index for Elderly Con13 sumers’’;

14 (G) in section 1834(l)(3)(A), by striking

15 ‘‘consumer price index for all urban consumers

16 (U.S. city average)’’ and insert ‘‘Consumer

17 Price Index for Elderly Consumers’’;

18 (H) in section 1834(l)(3)(B), by striking

19 ‘‘consumer price index for all urban consumers

20 (U.S. city average)’’ and insert ‘‘Consumer

21 Price Index for Elderly Consumers’’;

22 (I) in section 1842(s)(1), by striking ‘‘con23 sumer price index for all urban consumers

24 (United States city average)’’ and insert ‘‘Con25 sumer Price Index for Elderly Consumers’’;
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1 (J) in section 1882(p)(11)(C)(ii), by strik2 ing ‘‘Consumer Price Index for all urban con3 sumers (all items; U.S. city average)’’ and in4 sert ‘‘Consumer Price Index for Elderly Con5 sumers’’; and

6 (K) in section 1886(h)(5)(B), by striking

7 ‘‘Consumer Price Index for All Urban Con8 sumers (United States city average)’’ and insert

9 ‘‘Consumer Price Index for Elderly Con10 sumers’’.

11 (2) EFFECTIVE DATE.—The amendments made

12 by paragraph (1) shall apply with respect to deter13 minations made for periods ending after December

14 31 of the second calendar year following the cal15 endar year in which this Act was enacted.

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