Possible Reduction in Social Security Benefits (supplement, 2015, states, relative)

[LookingatFL]

Ok, I'm having one of my moments where I am getting confused. I've read this article multiple times but I still don't understand why the Hold Harmless rule is not protecting those already receiving Social Security from a decrease in benefit amount due to an increase in Medicare costs. Wasn't the hold harmless rule supposed to work for all years?

Can someone explain this to me?

"Since those that were enrolled in Medicare prior to 2016 have already been held harmless in 2016 due to increases from 2015, these retirees will automatically have their Medicare Part B premiums set at the 2016 Part B premiums in 2017, which is $121.80 a month.

This means the average retiree receiving Social Security will actually see their benefit decrease by $14.23 a month."

The average retiree will see Social Security benefit decrease

[Newporttom]

I'm confused also. And....if Medicare increases wipe out the SS COL increase, then SS isn't really inflation protected.

[Pat Answers]

Boy, that doesn't seem right. Where's the hold harmless? Yikes!

[NewbieHere]

The way I've read the hold harmless only applies to COLA increase, if there is no COLA then the hold harmless doesn't apply. Quick read in the morning here. Maybe I misread it.

[mathjak107]

The two are looked at as two different items. It is like your employer giving you a raise and the health insurer raising premiums but the employer policy is if you don't get a raise the company will cover the cost.

No one says the cola's have to put you ahead , if health costs rise the health costs should not put you behind .

The cola' s which are linked to a price index of goods and services were not meant to reflect anyone's personal cost of living

[LookingatFL]

Thank you, Mathjak.

[mathjak107]

You are welcome.

We tend to forget that one has nothing to do with the other other than the convience of having your premiums deducted out directly . The fact the hold harmless law back stops you is a bonus . If you are not collecting and are delaying ss you get no such bonus

[Pat Answers]

I've gone back and reread the OP's link several times. It still is very confusing to me. One of their statements about half way down the article states:

"A retiree receiving SS benefits and also earning under the national average of income and enrolled in Medicare cannot see their SS benefit decreased by increases in Medicare Part B Premiums."

So, what is the national average of income? And I think I was confusing the Medicare benefit with the cost of Medicare - one has to keep that straight. Something to remember, when the benefit of Medicare (is this the deductibles etc.) is decreased, like it was last year, our cost for our supplemental insurance policies usually goes up.

Read it all 3 times, I'm still somewhat confused. Sheesh.
Sadly, I have a relative who I know cannot sustain these kinds of increases. They are on the edge right now. I wish we'd saved more.

[lenora]

I read this same article on CNBC and some other site than the one linked. I spent hours yesterday researching his assertion that those who were already "held harmless" in 2016 would incur a premium increase in 2017 even if it reduced their net benefit. I am certain that the author is wrong. (Now watch me have to eat those words).

"In a year where the Social Security COLA is insufficient to cover the amount of the Medicare Part B premium increase for an individual, the law prohibits an increase in the Part B premium that would result in a reduction in that individual’s monthly Social Security benefits from one year to the next."

and

"The Social Security Trustees project a 3.1 percent COLA for 2017, which would result in an increase in monthly Social Security benefits in 2017.14 With an increase in the COLA projected for 2017, fewer Medicare Part B enrollees will be affected by the hold-harmless provision than in 2016, which means the beneficiary premium portion of Part B program spending is likely to be spread across a greater share of Part B enrollees in 2017 than in 2016, and the repayment surcharges will be paid by a larger share of beneficiaries as well."
What’s in Store for Medicare’s Part B Premiums and Deductible in 2016, and Why? | The Henry J. Kaiser Family Foundation

It seems clear to me...

[LookingatFL]

Hi Lenora,

I've been reading that the Social Security Board of Trustees is anticipating a 0.2% COLA in 2017 for retirees who are receiving Social Security benefits.