Low gas prices have greatly impacted that inflation, about 23 percent in comparison to last year’s numbers.
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For the third time in six years, Social Security recipients will not receive an increase in benefits next year.
That’s unwelcome news for more than one-fifth of the US population. “It would have to be a very sizable increase that would be visible, and I don’t think that’s happened”. The first is the announcement of the cost-of-living adjustment, if any, for Social Security beneficiaries in the coming calendar year.
The government determines the annual cost of living adjustments and it’s based on inflation. Medical costs have also increased faster than overall inflation, and a greater percentage of seniors’ spending is on health care.
The average monthly payment for someone on Social Security is $1,224 a month.
The impact of a 2016 increase in Part B premiums would be limited, as it is in most years. Since then the COLA rate has averaged around 4% a year. The deductible is the annual amount patients pay before Medicare kicks in.
Rep. Alan Grayson, D-Fla., claims the government’s reliance on the CPI-W, rather than the experimental CPI-E, has cost seniors $388 billion in Social Security benefits since 1982. Social Security benefits represent about 38 percent of the income for older Americans.
A few seniors said they are not buying that explanation, as food and medication prices have continued to soar.
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The news affects more than 70-million Americans, including those who get Social Security, disabled veterans and federal retirees. Retirees are more likely to be going to a doctor or a hospital than getting a college education, so the price index does not necessarily reflect your real expenses if you are retired. Many seniors, indeed, don’t even drive anymore. Those who would pay the higher premiums include 2.8 million new beneficiaries, 1.6 million whose premiums aren’t deducted from their Social Security payments and 3.1 million people with higher incomes. Multiply that by the 49 million people enrolled in Medicare and it’s clear Part B premium increases continue to be a major factor in pushing up the costs of health care.
