published Thursday, October 27th, 2011

Higher Social Security benefits vs. higher Medicare costs

2009 was the last year that Social Security recipients got an increase in benefits.

Not surprisingly, there has been a good deal of dissatisfaction in the years since that no additional benefit increase has been forthcoming.

So it must have seemed like good news recently when the Social Security Administration announced that it would be providing 55 million people in the program a 3.6 percent increase in benefits in 2012.

But that good news was rapidly tempered by the bad news that higher Medicare premiums may significantly cut into the increased Social Security benefits.

The Social Security increase will come to roughly $40 per month -- or a little less than $500 per year -- starting in January. But higher Medicare Part B premiums -- which are deducted from monthly Social Security payments -- are likely to eat up a portion of the Social Security increase. Some recipients may lose as much as a fourth of their higher Social Security benefit.

That's surely a disappointment to millions of Americans who are relying on Social Security.

But a far bigger "disappointment" awaits our entire nation if we do not begin to reform our runaway entitlement programs.

Medicare is expected to go broke just a few years from now, with Social Security following suit several years later.

Without serious reforms in the near future, that will force massive tax increases or huge benefit cuts -- or both -- onto the American people.

Sadly, not enough of our people -- nor of the members of Congress -- seem to be taking that matter very seriously, and so a painful day of reckoning draws ever closer.

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EaTn said...

Social Security and Medicare are programs that I and millions like me have paid into over the years with the promise of the insurer (the govt) to repay upon a future time of retirement or disability. They are not to be used to help pay debt due to reasons like wealthy tax cuts.

October 27, 2011 at 7:18 a.m.
conservative said...

That "painful day of reckoning" is most likely inevitable simply because too many people refuse to believe the truth. The Ponzi Scheme of Socialism Security has run its course. Those who have been retired for many years have received much more in benefits than they ever paid in. They will never admit that fact and will oppose vehemently any efffort to change the system or their brainwashed minds. They are wedded to the Demoncrat party and will hold on to their lies about the system being solvent till some made up future year, a year beyond their lifespan.

October 27, 2011 at 7:45 a.m.
hambone said...

The raise in Social Security is called a Cost Of Living Adjustment.

Medicare going up with each year of age is a cost of living.

DUH! Is TFP just now finding that out?

Has TFP found out that congress borrowed $2.5 trillion for Social Security while giving out their tax cuts?

October 27, 2011 at 7:54 a.m.
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