Chained CPI-U is discussed as an alternative to the Consumer Price Index for All Consumers. The Bureau of Labor Statistics created C-CPI-U as a time series measure of consumer goods and services price level, and would determine Medicare payments based on changes in consumer prices.
Proponents say this change would help reduce the budget deficit by slowing the growth rate of government benefits. However, opponents say C-CPI-U would reduce growth under government programs inappropriately.
The letter from ASCA expresses concerns about switching to the C-CPI-U system, particularly in situations where the annual rate would decrease.
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