Government

Based on July CPI-W potential SS COLA is still in 1.5% range

Despite the Medicare Trustees prediction of a 2.2% COLA, the inflation measures to date do not support that level of increase. 

What really counts however is the CPI- W for July, August and September, but inflation at present is quite stable. 

Only time will tell.

 However, 70% of retirees are unlikely to see any significant net increase in their monthly benefit. That is because making up the previously frozen Medicare Part B premium will consume all or most of the Social Security increase. 

Let’s say the average SS benefit of $1300 increases by 1.5% that’s $19.50. Now assume the true Medicare premium for 2018 should not be $134, but $124. However, these retirees are only paying $109 because of the hold harmless provision so if all the assumptions hold up, the average retiree’s premium could increase by as much as $19.50, in this example. 

The increase would be $109+$15 to equal $124 which means their net increase in SS benefit is $4.50. ($19.50-$15.00). 

Individuals now paying higher (much higher) income based premiums may see a decrease in the Part B premium. However, because in 2018 the points at which higher premiums are required is changing, more higher income people will be in higher premium brackets. 

Got it‼️ 𗁙

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3 replies »

  1. I am so sick of hearng ..that Mr. Trump will go after Social Security..its bad enuf that they took something out of my SS ..its not right..i had to take early due to financial issues..and am not getting that much to begin with and now they say they might increase the premium..why dont those idiots in washington stop playing around with my SS..and leave it alone..do not destroy it..do not touch it

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  2. My wife and I will be 62 next year and we will start our SS benefit in Feb 2018. I am glad SSA will auto enroll us in Medicare at age 65 and expect the premium to be $200 each by 2021. But, that is low compared to what many under age 65 are paying. I do not think they will ever change it, but I think people who do not sign up for medicare at age 65, should have to pay a higher premium because they waited. They were not billing any services to Medicare for the months they waited, so it is just a got you, imo.

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