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 Medi-
care 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 Com-
mittee on Ways and Means, and in addition to the Committees on Energy 
and Commerce, and Education and the Workforce, for a period to be sub-
sequently 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 indi-
ces to compute cost-of-living increases under the pro-
grams for Social Security and Medicare and other med-
ical benefits under titles II and XVIII of the Social 
Security Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘COLA Fairness Act 
of 2004’’.
SEC. 2. REGIONAL CONSUMER PRICE INDEX. 
(a) RECOGNITION
OF REGIONS.—The Bureau of 
Labor Statistics of the Department of Labor shall estab-
lish and publish a mapping of the United States under 
which 14 regions are recognized comprising the United 
States. Each region shall include one of the cities listed 
in subsection (b). 
(b) SPECIFIED CITIES.—The cities specified in this 
subsection are the following: 
(1) Atlanta, Georgia; 
(2) Boston, Massachusetts; 
(3) Chicago, Illinois; 
(4) Cleveland, Ohio; 
(5) Dallas, Texas; 
(6) Detroit, Michigan; 
(7) Philadelphia, Pennsylvania; 
(8) Houston, Texas; 
(9) Los Angeles, California; 
(10) Miami, Florida; 
(11) New York, New York; 
(12) San Francisco, California; 
(13) Seattle, Washington; and 
(14) Washington, District of Columbia. 
(c) ESTABLISHMENT
OF
REGIONAL
CONSUMER 
PRICE INDICES.—The Bureau shall establish and publish 
for each region recognized pursuant to subsection (a) a
monthly index for the region, to be known as the ‘‘Re-
gional Consumer Price Index’’ for the region, that indi-
cates changes over time in expenditures for consumption 
which are typical for individuals residing in the region. 
(d) EFFECTIVE DATE.—The preceding provisions of 
this section shall apply with respect to calendar months 
beginning on or after January 1, 2006. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out the provisions of this section.
SEC. 3. COMPUTATION OF SOCIAL SECURITY COST-OF-LIV-
ING INCREASES. 
(a) AMENDMENTS TO TITLE II.—
(1) IN GENERAL.—Section 215(i) of the Social 
Security Act (42 U.S.C. 415(i)) is amended—
(A) in paragraph (1)(G), by inserting be-
fore the period the following: ‘‘, and, with re-
spect to an individual who, at the time he ini-
tially becomes eligible for old-age insurance 
benefits or disability insurance benefits (or dies 
before initially becoming so eligible), resides in 
a region of the United States recognized by the 
Bureau of Labor Statistics pursuant to section 
2(a) of the COLA Fairness Act of 2004, the 
applicable Consumer Price Index shall be
deemed to be the Regional Consumer Price 
Index for such region’’; and 
(B) in paragraph (4), by striking ‘‘and by 
section 9001’’ and inserting ‘‘, by section 
9001’’, and by inserting after ‘‘1986,’’ the fol-
lowing: ‘‘and by section 3(a) of the COLA Fair-
ness Act of 2004,’’. 
(2) CONFORMING AMENDMENTS RELATING TO 
APPLICABLE
FORMER
LAW.—Section 215(i)(4) of 
such Act (42 U.S.C. 415(i)(4)) is amended by add-
ing at the end the following new sentence: ‘‘For pur-
poses of computing adjustments under this sub-
section as so in effect, the applicable Consumer 
Price Index shall be deemed to be the Regional Con-
sumer Price Index for the region in which such indi-
vidual resides at the time he becomes eligible for old-
age insurance benefits or disability insurance bene-
fits (or dies before initially becoming so eligible).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made by the 
Commissioner of Social Security under section 215(i)(2) 
of the Social Security Act (42 U.S.C. 415(i)(2)) with re-
spect to cost-of-living computation quarters ending on or 
after September 30 of the second calendar year following 
the calendar year in which this Act is enacted.
SEC. 4. AMENDMENTS TO TITLE XVIII OF THE SOCIAL SE-
CURITY ACT. 
(a) IN GENERAL.—Title XVIII of the Social Security 
Act (42 U.S.C. 1395 et seq.) is amended—
(1) in section 1814(i)(2)(B), by inserting ‘‘(i) 
for accounting years ending before October 1 of the 
second calendar year following the calendar year in 
which the COLA Fairness Act of 2004 was en-
acted,’’ after ‘‘for a year is’’, and by inserting after 
‘‘fifth month of the accounting year’’ the following: 
‘‘, and (ii) for accounting years ending after October 
1 of such calendar year, the cap amount determined 
under clause (i) for the last accounting year referred 
to in such clause, increased or decreased by the 
same percentage as the percentage increase or de-
crease, respectively, in the medical care expenditure 
category (or corresponding category) of the applica-
ble consumer price index, published by the Bureau 
of Labor Statistics, from March of such calendar 
year to the fifth month of the accounting year’’; 
(2) in section 1821(c)(2)(C)(ii)(II), by striking 
‘‘consumer price index for all urban consumers (all 
items; United States city average)’’ and inserting 
‘‘applicable consumer price index’’; 
(3) in section 1833(h)(2)(A)(i), by striking 
‘‘Consumer Price Index for All Urban Consumers
(United States city average)’’ and inserting ‘‘appli-
cable consumer price index’’; 
(4) in section 1833(i)(2)(C)(i), by striking 
‘‘Consumer Price Index for all urban consumers 
(U.S. city average)’’ and inserting ‘‘applicable con-
sumer price index’’; 
(5) in section 1834(a)(14)(J), by striking ‘‘con-
sumer price index for all urban consumers (United 
States city average)’’ and inserting ‘‘applicable con-
sumer price index’’; 
(6) in section 1834(h)(4)(A)(x), by striking 
‘‘consumer price index for all urban consumers 
(United States city average)’’ and inserting ‘‘appli-
cable consumer price index’’; 
(7) in section 1834(l)(3)(B), by striking ‘‘con-
sumer price index for all urban consumers (U.S. city 
average)’’ and inserting ‘‘applicable consumer price 
index’’; 
(8) in section 1839(i)(5)(A)(ii), by striking 
‘‘Consumer Price Index for all urban consumers 
(United States city average)’’ and inserting ‘‘appli-
cable consumer price index’’; 
(9) in section 1842(b)(19), by striking ‘‘con-
sumer price index for all urban consumers (U.S. city
average)’’ and inserting ‘‘applicable consumer price 
index’’; 
(10) in section 1842(s)(1), by striking ‘‘con-
sumer price index for all urban consumers (United 
States city average)’’ and inserting ‘‘applicable con-
sumer price index’’; 
(11) in subparagraphs (D)(ii) and (E)(ii) of 
section 1860D–14(a)(3), by striking ‘‘consumer 
price index (all items; U.S. city average)’’ and in-
serting ‘‘applicable consumer price index’’ each place 
it appears; 
(12) in clauses (i) and (ii) of section 1860D–
14(a)(4), by striking ‘‘consumer price index (all 
items; U.S. city average)’’ and inserting ‘‘applicable 
consumer price index’’ each place it appears; 
(13) in section 1882(p)(11)(C)(ii), by striking 
‘‘Consumer Price Index for all urban consumers (all 
items; U.S. city average)’’ and inserting ‘‘applicable 
consumer price index’’; 
(14) in section 1886(h)(2)(E)(vi)(II), by strik-
ing ‘‘for all urban consumers’’; and 
(15) in section 1886(h)(5)(B), by striking 
‘‘Consumer Price Index for All Urban Consumers 
(United States city average), as published by the
Secretary of Commerce’’ and inserting ‘‘applicable 
consumer price index’’. 
(b) DEFINITION OF APPLICABLE CONSUMER PRICE 
INDEX.—Section 1861 of such Act (42 U.S.C. 1395x) is 
amended by adding at the end the following new sub-
section: 
‘‘Applicable Consumer Price Index 
‘‘(uu) The term ‘applicable consumer price index’ 
means, in connection with any person affected by an ad-
justment to be made under this title based on such index, 
the Regional Consumer Price Index (as prescribed from 
time to time by the Bureau of Labor Statistics pursuant 
to section 2(c) of the COLA Fairness Act of 2004) for 
the region in which such person resides (in the case of 
an individual) or maintains principal offices (in any other 
case) at the time the adjustment takes effect. The Sec-
retary of Health and Human Services shall prescribe by 
regulation, in connection with each requirement for an ad-
justment under this title based a Regional Consumer Price 
Index, the manner in which such adjustment is to be de-
termined to affect particular persons for purposes of this 
subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to determinations 
made for periods ending after December 31 of the second
calendar year following the calendar year in which this Act 
was enacted.
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