In 2016, it is unlikely that Social Security “cost of living” benefits will increase. Conversely, there is a high probability that Medicare Part B premiums will increase steeply in for the same year. The combination of these two events has many people worried about an overall decrease in their net Social Security benefits.
For beneficiaries, Medicare Part B premiums are taken out of their monthly Social Security payment. The standard Medicare charge is 104.90 per month. In addition, there are varying Medicare premium tax brackets (based on the beneficiary’s Adjusted Gross Income), which deduct anywhere from $42 to $230.80 on top of the standard charge. An increase in these fees without a corresponding increase in Social Security COLA would result in a net reduction of Social Security benefits for many people.
The good news is that there is a “hold-harmless” provision in the United States Social Security Act. This provision states … Read More