Due to Medicare Costs, Seniors likely will not receive Social Service COLA adjustment for 3rd straight year

Due to Medicare Costs, Seniors likely will not receive Social Service COLA adjustment for 3rd straight year Scotty Starnes | March 28, 2011 at 7:30 AM | Tags: COLA, inflation, Medicare, Medicare Part B, Medicare premiums, Senior citizens, social security | Categories: Political Issues | URL: http://wp.me/pvnFC-4SO

Inflation has affected food and oil prices but the federal government will likely skip raising cost-0f-living adjustments (COLA) for the third year in a row.

WASHINGTON (AP) — Millions of retired and disabled people in the United States had better brace for another year with no increase in Social Security payments.

The government is projecting a slight cost-of-living adjustment for Social Security benefits next year, the first increase since 2009. But for most beneficiaries, rising Medicare premiums threaten to wipe out any increase in payments, leaving them without a raise for a third straight year.About 45 million people — one in seven in the country — receive both Medicare and Social Security. By law, beneficiaries have their Medicare Part B premiums, which cover doctor visits, deducted from their Social Security payments each month.

When Medicare premiums rise more than Social Security payments, millions of people living on fixed incomes don't get raises. On the other hand, most don't get pay cuts, either, because a hold-harmless provision prevents higher Part B premiums from reducing Social Security payments for most people.

David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase swallowed by rising Medicare premiums next year.

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