Congress and the White House have reached a budget deal on October 28 that otherwise could have resulted in as much as thirty percent of Medicare beneficiaries seeing a fifty two percent increase in their monthly Medicare Part B premiums (which cover doctor’s bills, etc.). Instead of increasing Medicare Part B premiums, the budget deal includes a reduction in Medicare payments to doctors and other health care providers in addition to making it more difficult to get Social Security disability insurance.
Due to a law that requires Medicare premiums cover increases in Medicare costs (except for those Social Security recipients who are also Medicare beneficiaries), about thirty percent of Medicare beneficiaries (new Medicare beneficiaries, seniors earning more than $85,000 a year, beneficiaries of both Medicare and Medicaid, and those enrolled in Medicare but who are not yet receiving Social Security) were facing a premium increase to at least $159.30 per month (usually it is $104.90 per month) to as much as $509.80 per month for certain retirees with high income. If the budget deal had not been reached, many seniors would have likely decided to not delay in taking their Social Security income (many presently delay collecting Social Security until after 65 so that their monthly Social Security income would be greater) since the “hold harmless” provision of the law prevented an increase in the Medicare Part B premiums if they receive Social Security.
Social Security and Supplemental Security Income for 2016 will remain as they were in 2015 since the consumer prices (such as the cost of gas) are down for the past year. In this author’s opinion, the present inflation gauge is unfair to seniors since it is based on goods and services bought by working people who generally have less health care costs. It would seem to make more sense that the cost of living adjustment be tied to the consumer price index for the elderly (since they are the ones affected) which would take health costs of the elderly into consideration.
The bill should be approved by the Senate as early as today.