Marginal Social Security Benefits Boost Could Mean Medicare Premium Hikes for Many
The Social Security Administration announced this week that there would be a marginal 0.3 percent increase in the Cost of Living Adjustment (COLA) for all beneficiaries.
While an increase is ostensibly good news for beneficiaries, its historically small size means it will likely be absorbed by increases in Medicare premiums for many older adults.
Because of a complicated formula that ties Medicare premium costs to Social Security benefits increases, a significant segment of Medicare beneficiaries could face up to a 23 percent jump in their Part B monthly premiums and deductible. n4a has joined over 70 other national aging advocacy groups calling on Congress to pass a legislative fix to alleviate this increase, but local agencies should be aware that they may be hearing from Medicare beneficiaries with questions about this projected increase in Medicare costs for 2017. Medicare should announce the premium and deductible rate at some point next month. n4a will have more information available on this potential bump in Medicare costs as it is available.