"Your New Benefit Amount" SSA says

[mickeyd]

No doubt I am not the only one here that just received the annual SSA notice indicating that I was getting a 0.3% increase in 2017. But alas, my Medicare deduction was increased by the exact amount of my raise.

Seems like my "new benefit" is the same as my old benefit. Just as I expected.

 

[Another Reader]

Not really sure what to do with my $4.00 a month windfall... Oh, wait. The price of Signature Kitchens whole wheat bread at Safeway just went up by $0.50 (was $1.99, now 2.49, a 25 percent increase).

 

[Rustward]

This is an oversimplification (there are exceptions) but in general if you have your medicare premiums withheld from your Social Security benefit, any increase in medicare part B premium is limited to the amount of the Social Security COLA.

For more details you can google 'social security hold harmless provision'

 

[GravitySucks]

OP Meet the new boss
same as the old Boss.

 

[meierlde]

This is an oversimplification (there are exceptions) but in general if you have your medicare premiums withheld from your Social Security benefit, any increase in medicare part B premium is limited to the amount of the Social Security COLA.

For more details you can google 'social security hold harmless provision'

Unless you are on the IRMAA (high income adjustment of the premium) where it goes up the full amount, and both the base premium and the income related adjustment go up.

 

[athena53]

They sent one to DH. Except that DH died on November 15, which they should have in their database since every funeral director supplies this info to the SS Death Register. I've filed for Survivor benefits. Maybe I'll get both? ;-)

 

[Spudd]

Not really sure what to do with my $4.00 a month windfall... Oh, wait. The price of Signature Kitchens whole wheat bread at Safeway just went up by $0.50 (was $1.99, now 2.49, a 25 percent increase).

So you can buy 8 loaves a month! Luxury!

 

[Bestwifeever]

Last year I had to pay the full Medicare increase as I wasn't taking SS yet so now I pay about $25 more than DH, who was already receiving SS and thus protected from MC increases that would decrease his SS. Now that I am taking SS, I might get that full $4 month while he will have to give his up toward the MC increase--at least that's how I understood it. I'll split it with him.

 

[Another Reader]

No. I could have bought two loaves, but now I can only buy one. I have to come up with another dollar to buy that second loaf now. Or maybe I should trade down to generic Wonderbread, which went up to $1.99.

 

[Another Reader]

Last year I had to pay the full Medicare increase as I wasn't taking SS yet so now I pay about $25 more than DH, who was already receiving SS and thus protected from MC increases that would decrease his SS. Now that I am taking SS, I might get that full $4 month while he will have to give his up toward the MC increase--at least that's how I understood it. I'll split it with him.

Toast and sandwiches in your house!

 

[Bestwifeever]

Toast and sandwiches in your house!

It will be a pretty exciting day in the BWE house!

 

[CRLLS]

I understand the "hold harmless" thing. What I'd like to understand is if, in following years, the COLA increases faster than the Medicare part B premium, then do they continue to increase your premium until you make up for their lost increases? Or does it reset every year?

 

[Texas Proud]

They sent one to DH. Except that DH died on November 15, which they should have in their database since every funeral director supplies this info to the SS Death Register. I've filed for Survivor benefits. Maybe I'll get both? ;-)

I am sorry for your loss.... but I doubt that the SS admin can move that fast to not send out a benefit letter... (or whatever they did send)....

 

[MBSC]

I understand the "hold harmless" thing. What I'd like to understand is if, in following years, the COLA increases faster than the Medicare part B premium, then do they continue to increase your premium until you make up for their lost increases? Or does it reset every year?

If I am understanding your question correctly, there is no carry over to future years. In 2010, the premium was $96.40 for those having it deducted from SS while the standard premium was $110.50. For 2011, those having the premium deducted from SS continued to pay $96.40 while the standard premium for 2011 rose to $115.40. For 2012, there was a 3.6% SS COLA which allowed Part B premiums to be recalculated and everyone not subject to IRMAA paid $99.90.

Now that I am taking SS, I might get that full $4 month while he will have to give his up toward the MC increase--at least that's how I understood it.

If the Part B premium is withheld from SS and you are not subject to IRMAA, the premium increase will offset the SS COLA.

For 2017, the COLA will be 0.3 percent. Instead of seeing their Social Security benefits rise by this amount, most people who are held harmless will instead see that increase applied to higher Part B premiums.

The average amount of that increase will raise Part B premiums by an average of about 4 percent, from $104.90 to about $109.00 a month. Exact increases will be tied to a person’s actual Social Security benefits, so Part B premiums will be larger than $109 for high-income beneficiaries and lower for those with below-average benefits.

For people who had to pay $121.80 a month this year but are now held harmless for 2017, their premiums will also rise by an average of about 4 percent. Again, specific changes will be tied to their actual Social Security payments.

For people who are not held harmless in 2017, the standard monthly Part B premium will rise from $121.80 to $134.00.

Reference: Get What's Yours

I turned 65 in September and applied for SS and Medicare. I started receiving SS last month and I do have the Medicare payment deducted from the SS payment.

I just got a letter from SS today saying my rate is increasing from $121.80 to $127.00. Interestingly, what that means for me is, my SS check will be exactly the same for 2017 as it is now.

Reference: City-Data Forum - View Single Post - Medicare Changes

 

[fritz]

No doubt I am not the only one here that just received the annual SSA notice indicating that I was getting a 0.3% increase in 2017. But alas, my Medicare deduction was increased by the exact amount of my raise.

Seems like my "new benefit" is the same as my old benefit. Just as I expected.

Yep - same here.

The government giveth and the government taketh away...

 

[Spudd]

No. I could have bought two loaves, but now I can only buy one. I have to come up with another dollar to buy that second loaf now. Or maybe I should trade down to generic Wonderbread, which went up to $1.99.

Not that it's important, because it was just a joke, but I meant that if you were already buying 8 loaves, your $4 extra would pay for the difference in the price vs before.

I'd rather cut down on my bread intake than eat Wonder Bread!

 

[athena53]

No doubt I am not the only one here that just received the annual SSA notice indicating that I was getting a 0.3% increase in 2017. But alas, my Medicare deduction was increased by the exact amount of my raise.

Seems like my "new benefit" is the same as my old benefit. Just as I expected.

I look at it another way. Part of your Medicare B premium increase was forgiven because hitting you with the full increase would have meant a decrease in your net monthly payment. So, you're getting coverage that's worth more this year but not getting charged with the full extra cost.

I'm not due to start Medicare for another year but if my investment income keeps chugging along the way it has, and given my change to Single Filing Status for 2017 and subsequent, I'm going to be paying IRMAA, so I won't be so fortunate.