President Joe Biden signed the Inflation Reduction Act this week, lowering energy costs, building a green economy, reducing pollution, reforming the tax code and cutting the deficit. But advocates for seniors say lowering Medicare costs will benefit the most Americans.

Democrats passed the bill, which contains several elements of the ill-fated Build Back Better program, with no support from Republicans.

Dana Kennedy, state director with AARP Arizona, said the health-care portions of the bill are the result of a 20-year battle with drug lobbyists on behalf of millions of Medicare patients.

"When costs go down, 50 million with Medicare Part D will have peace of mind knowing that their pharmacies are capped at $2,000 a year," said Kennedy, "3.3 million Medicare beneficiaries with diabetes will benefit from a guarantee that their insulin costs are capped at $35 a month."

Kennedy said the biggest savings for seniors may be a rule allowing Medicare to negotiate lower drug prices.

Since Congress created Part D drug plans in 2006, Medicare has been blocked from negotiating with pharmaceuticals, meaning seniors often pay full retail prices.

Sen. Mark Kelly - D-AZ - speaking at an AARP virtual roundtable, called the bill a major defeat for pharmaceutical companies - which pay 1,600 lobbyists almost $200 million dollars a year to protect their ability to set drug prices without regulations. Kelly said the bill will put the brakes on rising costs.

"The cost of these medications will not continue to go up faster than inflation," said Kelly. "What somebody said, if the price of gasoline went up the same rate as the price of prescription drugs since 2015, a gallon of gas would be $12."

In addition to fixing parts of Medicare, the measure will save 13 million Americans more than $800 a year on health plans, make 3 million more people eligible for health coverage, and will lower the number of uninsured Americans.

"I think it's fair to say that across the country, millions will save billions of dollars," said Kelly. "When you do the math, it's very impactful."

The Department of Government Efficiency, or DOGE, plans to cut 7,000 jobs from the U.S. Social Security Administration as it works to reduce the size of the federal government by eliminating waste and fraud. Nearly one in six Coloradans relies on Social Security payments, according to AARP.

Economist Monique Morrissey with the Economic Policy Institute calls the planned cuts a form of sabotage, and says Social Security is already very efficient.

"Less than 1% of what they are paying out goes to administrative costs. That's including not just the staffing, but the office space and everything else," she said. "So, almost all the money that's going out of Social Security is going directly into beneficiaries' pockets."

Morrissey added the agency is challenged by staffing, which has recently fallen to a 50-year low. She said wait times for phone and in-person appointments have already skyrocketed, and half of all callers now hang up before anyone answers.

President Donald Trump's Senior Advisor Elon Musk claims Social Security could be cut by $500 billion without reducing benefits, but Morrissey said layoffs can only save that kind of money by making it harder for people to access their benefits.

"And they claim that they can do this through looking for waste, fraud and abuse. But when you consider that less than 1% goes to anything that's improper payments - which is mostly not fraud, but just mistakes, and that usually get recouped - you can't get half a trillion dollars out of it and not be cutting benefits," she continued.

The Congressional Budget Office projects that Social Security will run out of money in less than ten years unless Congress acts. Morrissey noted the majority of Americans would rather increase revenues than cut benefits, and added that one easy fix would be to remove the cap on payroll taxes.

"Everybody should pay the same share of their income into Social Security, and right now that is not happening. If you make more than $176,100, you don't pay taxes above that amount," she explained.

The Social Security office in Grand Junction is on a DOGE list of possible closures in June, although the agency said last month it "had not announced the permanent closure of any local field office."


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The Social Security Administration backtracked on a new plan, set to take effect today, that would have required more people to apply for benefits in person instead of by phone.

Older Kentuckians say they've worked hard their whole lives for their benefits, and are relieved the changes won't go into effect.

Older residents in rural areas would have had to drive up to four hours in some cases to a local Social Security office, said Carla Wallace, an executive council volunteer with AARP Kentucky.

She added that folks filing for benefits for the first time might've had to take a day off work to fill out paperwork they could have done over the phone.

"I think it's very disrespectful to our senior citizens and our disabled community," said Wallace. "It is very inconsiderate."

More than one million Kentuckians receive some form of Social Security benefit each year. And six million Americans age 65 and over live more than 45 miles roundtrip from their nearest Social Security office, according to a report this month by the Center on Budget and Policy Priorities.

The Trump administration originally stated the changes would have reduced fraud risk.

Seniors' benefits shouldn't be on the chopping block, Wallace added. She noted that amid the rising cost of living, nearly half of the nation's older residents have trouble purchasing food or paying for housing and utilities.

She said AARP will continue to rally for Social Security.

"We are a nonpartisan organization," said Wallace. "We have people in Frankfort and in Washington, D.C. - advocating for us every day."

A nationwide survey released last year by the National Institute on Retirement Security found 87% of Americans agree that Social Security should remain a priority for the nation, no matter the state of budget deficits and across party lines.

The Social Security Administration has reversed its controversial plan to eliminate phone services for benefit claims, a move that would have forced millions of seniors to apply online or in person, creating barriers for rural residents and those without reliable internet access.

The decision followed intense advocacy from organizations and beneficiaries such as Phyllis Wilson of Southaven, Mississippi, who faced the system's challenges firsthand. While navigating issues with her spousal benefits under the Windfall Elimination Provision (WEP), Wilson called the administration's 1-800 number and waited on hold for three hours without an answer, even documenting the ordeal with a screenshot. Her persistence paid off when she called the local office in Hernando, which was able to help.

"And I know there were other people who could not get through, whose offices had actually closed," she said, "but they answered right away and they talked to me about my spousal benefits and had told me that they could see that I was impacted by the WEP; there was nothing that I needed to do. "

Wilson's payment arrived within a week, prompting her to alert friends about the solution. The now-reversed policy would have affected Mississippi's 680,000 Social Security recipients. The administration itself estimates that this change could have overwhelmed offices with 4 million additional annual visits, or up to 85,000 more per week.

Kimberly Campbell, AARP Mississippi state director, praised the administration's about-face for recognizing the importance of phone access for vulnerable people.

"There is also the issue of travel," she said. "You have someplace where individuals may have to travel hours to get to in-person application and to prove their identities, and so removing the phone capabilities was critical to us."

As the administration implements phone-based fraud checks, projecting around 70,000 claims might be flagged annually for in-person verification, Campbell warned that access hurdles persist. Nearly 8 million seniors have travel-limiting disabilities, while 6 million don't drive at all, according to the Center on Budget and Policy Priorities.