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Somewhere, in one of the threads on this board, MadManofBethesda was explaining to us about the hold harmless rules and how everyone held harmless will still be paying increased monthly medicare premiums in the future.
The following article explains what he was saying and helps to answer whether or not we should be abandoning plans to wait to apply for Social Security:
Somewhere, in one of the threads on this board, MadManofBethesda was explaining to us about the hold harmless rules and how everyone held harmless will still be paying increased monthly medicare premiums in the future.
The following article explains what he was saying and helps to answer whether or not we should be abandoning plans to wait to apply for Social Security:
Once COLAs resume — and they surely will — Part B premiums will “normalize” over time. People held harmless next year would pay more. And people not held harmless in 2016 would see their premiums decrease. After at most a few years, everyone without an income-based premium surcharge once again would pay the same Part B premium.
In 2010 and 2011, with no Social Security COLA, the hold‐harmless provision prevented the majority of Medicare beneficiaries from paying any increase in Part B premiums. Thus, in both 2010 and 2011, the majority of Medicare beneficiaries paid monthly premiums of $96.40, which was the standard Part B premium amount in 2009.
Roughly one‐quarter of all Part B enrollees were not held harmless in 2010 and 2011, including new Medicare enrollees (3 percent); higher‐income beneficiaries (5 percent); and Medicare beneficiaries who do not have their Part B premium deducted from their Social Security benefit payment (19 percent) – this group consists mainly of beneficiaries dually eligible for Medicare and Medicaid, for whom Medicaid pays the monthly Part B premium (17 percent). These beneficiaries were subject to a higher Part B premium than those who were protected by the hold‐harmless provision to ensure that Part B enrollee premium contributions continued to cover 25 percent of program costs. The standard monthly premium for these beneficiaries was $110.50 in 2010 and $115.40 in 2011.
With an increase in the Social Security COLA scheduled for 2012, fewer beneficiaries will be affected by the hold-harmless provision, and the beneficiary portion of annual Part B expenditures will be spread across a greater share of Part B enrollees than in 2010 and 2011. This results in a monthly Part B premium of $99.90 in 2012 – an increase for the majority of beneficiaries who have been protected by the hold‐harmless provision in 2010 and 2011 who were paying $96.40, and a decrease for all others who were paying the standard amount in both years.
The monthly Medicare Part B premium for those who have been paying the 2011 standard Part B premium (i.e., not protected by the hold‐harmless provision this year) will decrease by $15.50 per month, from $115.40 to $99.90 (a 13.4 percent decrease). For those who have been paying the 2010 standard Part B premium (e.g., beneficiaries who enrolled in Medicare in 2010), the monthly Part B premium will decrease by $10.60 per month, from $110.50 to $99.90 (a 9.6 percent decrease).
I don't disagree, but I don't think that conflicts with what I said. If you exceed the income limitation your premiums will go up, if it is below that, increases in medicare will never reduce the amount of your SS check but could potentially eat up a COLA. https://www.kitces.com/blog/understa...beneficiaries/
As for when you should take SS.. 62 or 65 or 70? Do the math.. if you receive x $ at 62 and y$ at 65 how long will the additional dollars earned at 65 take to over come 3 years ( 36 checks ) at 62 etc. Say you get $1500 a month at 62 but you would get $1750 at 65 that's a $250 month difference. However 36 x $1500 = $54,000 it would take 216 months or 18 years to break even.. You would be 80 years old when you broke even . That is not exact math each of us has different #'s to work the problem but that's close to how mine worked out.. Each to his own.. But the first 3 years of retirement will see you more active and Living Life more fully than you will be at 70 yoa at least from what I am seeing all around me .. all around life style cost and enjoyment goes down every year.. From What I am seeing The Toys are basically all sold by 70 ..
I don't disagree, but I don't think that conflicts with what I said.
I wasn't disagreeing with you. I was disagreeing with the author in the OP's link. The author stated when COLA's resume, those previously held harmless will see their premiums rise each year "until your Medicare Part B premium has been raised by the full $650."
This is incorrect. The total cost of the Medicare program and the beneficiary portion are recalculated each year. When the standard premium went to $110.50 in 2010, those held harmless did not see their premiums rise to that amount over the years after COLA resumed.
Last edited by SCGamecock; 10-17-2015 at 06:26 AM..
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