Modest Relief, Mounting Costs for America’s Seniors

By Robert Roach, Jr.

This year will be a mixed bag for older Americans in terms of affordability.

At the pharmacy counter, many seniors will finally see real relief. Prices will drop this year for 10 widely used, high-cost prescription drugs because of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. Also the annual out-of-pocket cap for prescription drugs increased to $2,100 for Medicare Part D beneficiaries. Once a beneficiary reaches that limit, they will pay zero dollars out of pocket for their prescriptions. 

Social Security’s 2.8 percent cost-of-living adjustment (COLA) will put a modest amount of additional money in retirees’ checks—but for many, it will barely keep pace with rising costs. For most seniors, any gains will be quickly erased. Medicare Part B premiums rose to $202.90 a month, consuming much—or all—of the Social Security COLA. 

And Americans aged 65 and older will be able to deduct an additional $6,000 on their income taxes. This deduction will primarily help seniors whose total income is between $50,000 and $200,000 and expires in 2028.

The Inflation Reduction Act proved that lowering costs for seniors is possible. We urge our leaders to build on that success by expanding drug price negotiations and keeping health insurance affordable. 

Robert Roach, Jr. is president of the Alliance for Retired Americans.  He was previously General Secretary‐Treasurer of the IAMAW.  For more information, visit www.retiredamericans.org.