“And seniors who have Medicare B premiums deducted from their benefits will see no increase, even if premiums rise for other Medicare recipients”. All three times have come since 2010. COLA presently is hit by lowered gasoline prices.
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Inflation, the agency said, was down 0.6 percent for the fiscal year that ended in September, putting it behind last year’s rate and eliminating any chance for Social Security raise.
“The price of food has gone up”.
Here’s what you need to know.
This will be the first year since 2011 that federal retirees do not receive a COLA.
For many households in the USA, Social Security is the primary income source. For instance, there will be no increase in the amount of earnings subject to wage taxes – the Social Security cap will remain at $118,500. Nearly 60 million retirees, disabled workers, spouses and children get Social Security benefits. And over the past 12 months inflation at the consumer level has shown zero increase. Defending seniors from larger deductibles & premiums might value around $10 billion, & if Congress plans to decide up in that tab, it must offset in that with finances cuts or revenue increases elsewhere.
With the “hold harmless” provision, which ensures Social Security checks will not decrease in value, now in place for Medicare premiums, most premiums will not increase without a COLA. They say it doesn’t take into account the generally much higher medical bills for retirees that are not covered by insurance or Medicare. Higher earners could see their monthly premium go as high as $510. That’s the biggest increase since 2009. Medicare is required by law to collect about 25 percent of Part B program expenses from beneficiary premiums. Medicare needs additional money to help pay for Part B of the program, which covers doctors services, outpatient hospital care and a few prescription drugs.
Medicare’s annual open enrollment period began October 15 and runs through December 7. And I just found out about the Medicare premiums.
The group asked the U.S. Congress to “reduce and mitigate the impact of the sudden, sharp increases in the Part B premium and deductible as soon as possible”. Johnson has been retired for about a year-and-a-half and said not having an increase may hurt a bit, but planning ahead will get you by. The Administration has provided a fact sheet of information about 2016 Social Security and SSI changes. Since then, increases have averaged 4 percent a year.
A separate measure of consumer prices that captures seniors’ purchases rose 0.6% the past year, the Senior Citizens League says. If prices go up, benefits go up. If they stay more or less flat, so do benefits.
The CPI-W numbers for September are being released Thursday, providing the last piece of the puzzle. Airfares have fallen by 5.9 percent and clothing prices are down by 1.3 percent. “Other prices – other than energy – would have to jump”.
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Inflation was extremely low in 2015, triggering another benefit freeze, Social Security officials said.
