October 15th, 2012|
In 2012, seniors received a 3.6 percent Social Security cost of living adjustment (COLA) and a Medicare premium increase. In 2013, the Social Security COLA is expected to be just 1.4 percent–with much of that eaten up by a Medicare premium increase, according to NBC News.
The Bureau of Labor Statistics (BLS) will release inflation numbers on Tuesday for the month of September.
The Social Security Administration averages together third-quarter inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to reach the yearly COLA adjustment—which is pointing toward 1.4 percent for 2013.
To further complicate the COLA for seniors, experts expect that the Medicare Part B premium will rise from five percent to 10 percent in 2013.
That could translate to a $9.20 monthly increase over this year’s $99.90 premium, which means that some seniors will see no net COLA increase at all.
Such small COLAs for seniors and the increase in Medicare premiums will likely add to the debate over what measure of inflation is most appropriate for determining Social Security’s annual benefit adjustments.
“It certainly isn’t going to be enough to face the higher heating bills and all the other higher expenses seniors will face next year,” says a Social Security policy analyst for the Senior Citizens League.
If you or someone you know needs help with SSD benefits, contact the Social Security lawyers at Fleschner, Stark, Tanoos & Newlin.