# What This Bill Does

This bill changes how Social Security benefits increase each year to better match what seniors actually spend money on. Right now, Social Security adjustments are based on a general measure of inflation that tracks price changes for all Americans. This bill would switch to using a special inflation measure called the Consumer Price Index for Elderly Consumers (CPI-E), which specifically tracks price changes for things seniors buy most—like healthcare, prescription drugs, and housing.

The difference matters because seniors tend to spend their money differently than younger people. They spend much more on medical care and less on things like gas or clothing. Healthcare costs have been rising faster than overall inflation, so the current system doesn't fully account for the real cost increases seniors face. By using CPI-E, Social Security benefits would increase by amounts that more accurately reflect what it actually costs seniors to live.

The practical effect is that seniors would likely see slightly larger annual increases to their Social Security checks than they do now, since the CPI-E typically shows higher inflation rates than the general inflation measure currently used. The bill would start applying this new method to benefit calculations beginning in late 2024. This is a permanent change to how the system works, not a one-time boost, so it would affect Social Security recipients for years to come and help protect their purchasing power as they age and face rising costs.

Social Security Cost of Living Increase Act of 2023

Smith, Christopher H.

Social Security Cost of Living Increase Act of 2023 This bill bases cost-of-living adjustments for Social Security benefits on a price index that tracks the spending patterns of older consumers. The Bureau of Labor Statistics of the Department of Labor must publish that price index on a monthly basis.