I 

108TH CONGRESS 

2D SESSION H. R. 4054

To require the establishment of regional consumer price indices to compute 

cost-of-living increases under the programs for Social Security and Medicare and other medical benefits under titles II and XVIII of the Social 

Security Act. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2004

Mr. WEINER introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy 

and 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 regional consumer price indices to compute cost-of-living increases under the programs for Social Security and Medicare and other medical 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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘COLA Fairness Act 

5 of 2004’’. 
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1 SEC. 2. REGIONAL CONSUMER PRICE INDEX. 

2 (a) RECOGNITION OF REGIONS.—The Bureau of 

3 Labor Statistics of the Department of Labor shall estab4 lish and publish a mapping of the United States under 

5 which 14 regions are recognized comprising the United 

6 States. Each region shall include one of the cities listed 

7 in subsection (b). 

8 (b) SPECIFIED CITIES.—The cities specified in this 

9 subsection are the following: 

10 (1) Atlanta, Georgia; 

11 (2) Boston, Massachusetts; 

12 (3) Chicago, Illinois; 

13 (4) Cleveland, Ohio; 

14 (5) Dallas, Texas; 

15 (6) Detroit, Michigan; 

16 (7) Philadelphia, Pennsylvania; 

17 (8) Houston, Texas; 

18 (9) Los Angeles, California; 

19 (10) Miami, Florida; 

20 (11) New York, New York; 

21 (12) San Francisco, California; 

22 (13) Seattle, Washington; and 

23 (14) Washington, District of Columbia. 

24 (c) ESTABLISHMENT OF REGIONAL CONSUMER

25 PRICE INDICES.—The Bureau shall establish and publish 

26 for each region recognized pursuant to subsection (a) a 
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1 monthly index for the region, to be known as the ‘‘Re2 gional Consumer Price Index’’ for the region, that indi3 cates changes over time in expenditures for consumption 

4 which are typical for individuals residing in the region. 

5 (d) EFFECTIVE DATE.—The preceding provisions of 

6 this section shall apply with respect to calendar months 

7 beginning on or after January 1, 2006. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated such sums as are nec10 essary to carry out the provisions of this section.

11 SEC. 3. COMPUTATION OF SOCIAL SECURITY COST-OF-LIV12 ING INCREASES. 

13 (a) AMENDMENTS TO TITLE II.—

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

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

16 (A) in paragraph (1)(G), by inserting be17 fore the period the following: ‘‘, and, with re18 spect to an individual who, at the time he ini19 tially becomes eligible for old-age insurance 

20 benefits or disability insurance benefits (or dies 

21 before initially becoming so eligible), resides in 

22 a region of the United States recognized by the 

23 Bureau of Labor Statistics pursuant to section 

24 2(a) of the COLA Fairness Act of 2004, the 

25 applicable Consumer Price Index shall be 
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1 deemed to be the Regional Consumer Price 

2 Index for such region’’; and 

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

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

5 9001’’, and by inserting after ‘‘1986,’’ the fol6 lowing: ‘‘and by section 3(a) of the COLA Fair7 ness Act of 2004,’’. 

8 (2) CONFORMING AMENDMENTS RELATING TO

9 APPLICABLE FORMER LAW.—Section 215(i)(4) of 

10 such Act (42 U.S.C. 415(i)(4)) is amended by add11 ing at the end the following new sentence: ‘‘For pur12 poses of computing adjustments under this sub13 section as so in effect, the applicable Consumer 

14 Price Index shall be deemed to be the Regional Con15 sumer Price Index for the region in which such indi16 vidual resides at the time he becomes eligible for old17 age insurance benefits or disability insurance bene18 fits (or dies before initially becoming so eligible).’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to determinations made by the 

21 Commissioner of Social Security under section 215(i)(2) 

22 of the Social Security Act (42 U.S.C. 415(i)(2)) with re23 spect to cost-of-living computation quarters ending on or 

24 after September 30 of the second calendar year following 

25 the calendar year in which this Act is enacted.
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1 SEC. 4. AMENDMENTS TO TITLE XVIII OF THE SOCIAL SE2 CURITY ACT. 

3 (a) IN GENERAL.—Title XVIII of the Social Security 

4 Act (42 U.S.C. 1395 et seq.) is amended—

5 (1) in section 1814(i)(2)(B), by inserting ‘‘(i) 

6 for accounting years ending before October 1 of the 

7 second calendar year following the calendar year in 

8 which the COLA Fairness Act of 2004 was en9 acted,’’ after ‘‘for a year is’’, and by inserting after 

10 ‘‘fifth month of the accounting year’’ the following: 

11 ‘‘, and (ii) for accounting years ending after October 

12 1 of such calendar year, the cap amount determined 

13 under clause (i) for the last accounting year referred 

14 to in such clause, increased or decreased by the 

15 same percentage as the percentage increase or de16 crease, respectively, in the medical care expenditure 

17 category (or corresponding category) of the applica18 ble consumer price index, published by the Bureau 

19 of Labor Statistics, from March of such calendar 

20 year to the fifth month of the accounting year’’; 

21 (2) in section 1821(c)(2)(C)(ii)(II), by striking 

22 ‘‘consumer price index for all urban consumers (all 

23 items; United States city average)’’ and inserting 

24 ‘‘applicable consumer price index’’; 

25 (3) in section 1833(h)(2)(A)(i), by striking 

26 ‘‘Consumer Price Index for All Urban Consumers 
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1 (United States city average)’’ and inserting ‘‘appli2 cable consumer price index’’; 

3 (4) in section 1833(i)(2)(C)(i), by striking 

4 ‘‘Consumer Price Index for all urban consumers 

5 (U.S. city average)’’ and inserting ‘‘applicable con6 sumer price index’’; 

7 (5) in section 1834(a)(14)(J), by striking ‘‘con8 sumer price index for all urban consumers (United 

9 States city average)’’ and inserting ‘‘applicable con10 sumer price index’’; 

11 (6) in section 1834(h)(4)(A)(x), by striking 

12 ‘‘consumer price index for all urban consumers 

13 (United States city average)’’ and inserting ‘‘appli14 cable consumer price index’’; 

15 (7) in section 1834(l)(3)(B), by striking ‘‘con16 sumer price index for all urban consumers (U.S. city 

17 average)’’ and inserting ‘‘applicable consumer price 

18 index’’; 

19 (8) in section 1839(i)(5)(A)(ii), by striking 

20 ‘‘Consumer Price Index for all urban consumers 

21 (United States city average)’’ and inserting ‘‘appli22 cable consumer price index’’; 

23 (9) in section 1842(b)(19), by striking ‘‘con24 sumer price index for all urban consumers (U.S. city 
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1 average)’’ and inserting ‘‘applicable consumer price 

2 index’’; 

3 (10) in section 1842(s)(1), by striking ‘‘con4 sumer price index for all urban consumers (United 

5 States city average)’’ and inserting ‘‘applicable con6 sumer price index’’; 

7 (11) in subparagraphs (D)(ii) and (E)(ii) of 

8 section 1860D–14(a)(3), by striking ‘‘consumer 

9 price index (all items; U.S. city average)’’ and in10 serting ‘‘applicable consumer price index’’ each place 

11 it appears; 

12 (12) in clauses (i) and (ii) of section 1860D–

13 14(a)(4), by striking ‘‘consumer price index (all 

14 items; U.S. city average)’’ and inserting ‘‘applicable 

15 consumer price index’’ each place it appears; 

16 (13) in section 1882(p)(11)(C)(ii), by striking 

17 ‘‘Consumer Price Index for all urban consumers (all 

18 items; U.S. city average)’’ and inserting ‘‘applicable 

19 consumer price index’’; 

20 (14) in section 1886(h)(2)(E)(vi)(II), by strik21 ing ‘‘for all urban consumers’’; and 

22 (15) in section 1886(h)(5)(B), by striking 

23 ‘‘Consumer Price Index for All Urban Consumers 

24 (United States city average), as published by the 
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1 Secretary of Commerce’’ and inserting ‘‘applicable 

2 consumer price index’’. 

3 (b) DEFINITION OF APPLICABLE CONSUMER PRICE

4 INDEX.—Section 1861 of such Act (42 U.S.C. 1395x) is 

5 amended by adding at the end the following new sub6 section: 

7 ‘‘Applicable Consumer Price Index 

8 ‘‘(uu) The term ‘applicable consumer price index’ 

9 means, in connection with any person affected by an ad10 justment to be made under this title based on such index, 

11 the Regional Consumer Price Index (as prescribed from 

12 time to time by the Bureau of Labor Statistics pursuant 

13 to section 2(c) of the COLA Fairness Act of 2004) for 

14 the region in which such person resides (in the case of 

15 an individual) or maintains principal offices (in any other 

16 case) at the time the adjustment takes effect. The Sec17 retary of Health and Human Services shall prescribe by 

18 regulation, in connection with each requirement for an ad19 justment under this title based a Regional Consumer Price 

20 Index, the manner in which such adjustment is to be de21 termined to affect particular persons for purposes of this 

22 subsection.’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply with respect to determinations 

25 made for periods ending after December 31 of the second 
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1 calendar year following the calendar year in which this Act 

2 was enacted.

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