On today’s episode of the America’s Work Force Union Podcast, Lisa Cutler, Director of Communications for the Alliance for Retired Americans, discussed recent changes to prescription drug pricing, adjustments to Social Security benefits, Medicare premiums and the impact of staff cuts at Social Security field offices.
Cutler began by discussing changes to prescription drug pricing resulting from the Inflation Reduction Act, signed two years prior. Lower cap prices for 10 of the highest-priced drugs used by seniors went into effect in January. Cutler explained that some prescription costs were slashed in half, and an out-of-pocket cap for Medicare Part D now limits drug expenses to $2,100, adjusted for inflation. Additionally, further price negotiations for another 15 drugs will take effect next January, reflecting ongoing efforts to curb high prescription costs for seniors.
For Social Security recipients, Cutler detailed modest changes that bear mixed implications. The cost-of-living adjustment (COLA) for 2026 resulted in an average increase of just $52 a month in Social Security payments. However, this small gain is largely offset by the rise in Medicare Part B premiums, which climbed to $202.90 per month. On the tax front, a temporary $6,000 income tax deduction for those 65 and older was enacted, but will expire at the end of 2027, offering targeted relief to middle-income retirees but not addressing the broader issue of Social Security benefit taxation.
Finally, Cutler discussed some of the growing challenges within Social Security field offices. Cutler reported that 7,000 frontline workers have left the Social Security Administration, leading to record backlogs and delays in services—from benefit applications to customer service calls. With one field worker for every 4,000 beneficiaries and the country experiencing a surge of baby boomers retiring, service delays are likely to worsen. Cutler said the Alliance is urging members to contact Congress to restore staffing levels, while voicing concern over efforts to replace human workers with artificial intelligence and chatbots. Cutler emphasized that retirees deserve quality support when accessing the benefits they've earned.
For more from Cutler, listen to the full episode of the America’s Work Force Union Podcast above.
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