Will the Medicare Premium Increases for 2012 Negate the Social Security COLA?
Medicare increases for 2012 have been rumored to possibly eat up all the 3.6% cost of living adjustment (COLA) that was announced last week after the new CPI-W inflation numbers for September became available. The increase in social security payments that will take effect in 2012 were supposed to help alleviate some of the pressure faced by seniors on a fixed income by giving them a little extra to cover the rising prices. Now, it looks like there might be an increase in Medicare premiums that could take the net effect down to very little change.
The intent of the COLA automatic adjustments for inflation were to help the social security benefits to stay current with the daily consumer market. They were started back in 1975. If there is an increase in Medicare premiums every time there is a increase in COLA, how is that helping anyone? It is just taking money from one government agency and giving it to another.
The Medicare part B increase for 2012 has not been announced yet. There hasn’t been an increase in the Medicare premiums for the last 2 years as there was no increase in social security due to inflation numbers declining or remaining constant. 2012 will see an increase of 3.6% in the monthly checks. Since there is going to be an increase in benefits, it looks like that now is a better time to increase the core premium than the last 2 years when there wasn’t an increase.
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