topic The affect of a 2.5 % increase to SS for Seniors with new Medicare hike in Medicare & Insurance

The affect of a 2.5 % increase to SS for Seniors with new Medicare hike

LoneWolf7254 — Sat, 09 Nov 2024 23:34:47 GMT

I am curious as to how much will be taken out of the 2.5% increase with the Medicare premium jumping to $ 185.00. With two Seniors living mostly on SS since Our retirement got wiped out in 2008, during the crash, like many others. Can someone explain how this is calculated and works ? Thanks.

Re: The affect of a 2.5 % increase to SS for Seniors with new Medicare hike

GailL1 — Sun, 10 Nov 2024 01:31:51 GMT

@LoneWolf7254

The 2.5% COLA is added to your total benefit amount that you had for 2024 - before any deductions.

The result figure then has the new Part B premium deducted. This new premium is only $10.30 higher than the 2024 premium.

So if your total Social Security benefit is $ 1900.00 X. .025 = $ 47.50 then your new Social Security Benefit amount is $ 1947.50.

The Part B premium is deducted from that figure $ 1947.50 - $ 185.00 = leaving a net Social Security benefit of $ 1762.50 (and SSA rounds this to $ 1763.00, I think).

Any other deductions that you have taken out of your Social Security benefit will be deducted from this net figure.

Now the only time this would change is IF we had a low to no COLA and the computations ended up with your new benefit being lower than the year before because of the amount of the Part B premium amount. There is a hold harmless provision in the Social Security law that would then restrict the amount of the Part B premium so that the beneficiary got the same benefit as the previous year’s benefit.

The Medicare hold harmless provision prevents a recipient's Social Security benefits from declining year-over-year as a result of an increase in deductions for the Medicare Part B premium.

Edited to add: @LoneWolf7254, if your income/ assets are low you could see if you qualify for one of the Medicare Savings Programs.

This explains them however these eligibility limits haven’t been updated yet to the new 2025 amount, They should be updated in December.

Medicare.gov - Medicare Savings Programs

Re: The affect of a 2.5 % increase to SS for Seniors with new Medicare hike

nctarheel — Sun, 10 Nov 2024 04:57:17 GMT

@LoneWolf7254 wrote:
With two Seniors living mostly on SS since Our retirement got wiped out in 2008, during the crash, like many others.

How did your retirement get "wiped out". Did you sell all of your investments at the lows of 2008-early 2009? Many held on to their investments which are now worth exponentially more now than they have ever been either pre-2008 or post-2008.