Sunday, August 23, 2009

Actual SSA payments may go down for many in 2010, 2011

Stephen Ohlemacher of the Associated Press writes today that millions will face shrinking social security benefit checks in 2010 and 2011. That’s because there will be no COLA increase (since the actual COLA has not increased, given the decline in energy prices since 2008), while Medicare Part D premiums (for prescription drugs) may increase for many seniors. Medicare premiums for Part B cannot increase when the payment remains level, but Part D can.

Some people suggest that a small pseudo-COLA increase could be funded by increasing the wage base slightly, now at $106000.

The link for the story is here.

The story appeared on Yahoo! today.

Update: September 27, 2009

MSN has an article from Smart Money, "Social Security's new math: Who loses? Barring action by Congress, 2010 will be the first year in 35 years that seniors don't get a cost-of-living adjustment. Benefits won't shrink, but it may feel like a cut because of rising medical costs", link here.

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