Social Security Benefits Could Get Their Biggest Boost in 40 Years.

Lately I've been reading that gas prices are suddenly falling rapidly all over the country, far more rapidly this week than in prior weeks. Who knows if this is true. But if so, apparently it is expected to lower the projected 2023 cost of living increase for millions of federal employees and retirees, as well as SS increases I guess.

I am tempted to say something sassy/snarky about the timing and stamp my foot, but that's just the spoiled little girl within expressing disappointment instead of any sort of rational adult commentary. :mad:

But I'm not so mad as to go through the actual computations like Gumby did! :LOL: I'm just feeling pretty lazy today.
 

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MissMolly said:
Even if they did raise Medicare 8.7% you are only talking about an increase of $14.80 (for the lowest tier). That amount is FAR below the average monthly SS payment of $1,641 which would see an increase of $142.67.
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I'm fairly certain that increases in Medicare premiums are calculated differently than the increases in SS benefits. The former somehow involves the costs of care (see Alzheimer's drug comment next), and the latter is based on the increase in CPI-W.
 
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W2R said:
Lately I've been reading that gas prices are suddenly falling rapidly all over the country, far more rapidly this week than in prior weeks. Who knows if this is true. But if so, it is expected to lower the 2023 cost of living increase for millions of federal employees and retirees, as well as SS increases I guess.

I am tempted to say something sassy/snarky about the timing and stamp my foot, but that's just the spoiled little girl within expressing disappointment instead of any sort of rational adult commentary. :mad:
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Hopefully W2R, the September number will only lower the Cola by another fraction, so that the 2023 increase will still be hefty. I'm also focused on what the 2023 Medicare B premium will be as well as the 2023 FEHB premium increase. We should know the Part B premium increase next month or early November. Same with the FEHB premiums. I think there is some optimism regarding Part B due to the decision on the Alz drug. I'm not so sure about FEHB.
 
Golden sunsets said:
Hopefully W2R, the September number will only lower the Cola by another fraction, so that the 2023 increase will still be hefty. I'm also focused on what the 2023 Medicare B premium will be as well as the 2023 FEHB premium increase. We should know the Part B premium increase next month or early November. Same with the FEHB premiums. I think there is some optimism regarding Part B due to the decision on the Alz drug. I'm not so sure about FEHB.
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I hope you're right about the COLA. I'm FERS so it's already 1% less than the actual increase in CPI. I'm looking for the world's tiniest violin so that I can play my plaintive song. :ROFLMAO:

I'd imagine that some decision makers might decide that this is a good year to increase monthly Part B or FEHB, since people will "feel it less" due to the increases in SS and FERS.

I don't know why all this bothers me, since I really don't need more than my SS and FERS to live on. I just feel like I "want to get mine", which I admit is a very selfish attitude.
 
SecondCor521 said:
I'm fairly certain that increases in Medicare premiums are calculated differently than the increases in SS benefits. The former somehow involves the costs of care (see Alzheimer's drug comment next), and the latter is based on the increase in CPI-W.
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Well, yes, they are calculated differently. But let's say that that Medicare goes up 20%. That would be an increase of $34 a month (I don't think the increase will be that high).

At 8.7% SS COLA, my increase will be about $212 a month so even a 20% Medicare increase doesn't use up that much.
 
SecondCor521 said:
I'm fairly certain that increases in Medicare premiums are calculated differently than the increases in SS benefits. The former somehow involves the costs of care (see Alzheimer's drug comment next), and the latter is based on the increase in CPI-W.
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They are. I was just making a point.
 
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Golden sunsets said:
This is part D, the $31.50 is the projected new rate, not the increase. The projected rate is actually a decrease of 1.8%.
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You are correct, I completely misread that article. I need to learn to stop skimming. The article from Aug states that the Medicare premium is expected to remain flat.
 
Katsmeow said:
Well, yes, they are calculated differently. But let's say that that Medicare goes up 20%. That would be an increase of $34 a month (I don't think the increase will be that high).

At 8.7% SS COLA, my increase will be about $212 a month so even a 20% Medicare increase doesn't use up that much.
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But actual medical costs have risen along with inflation (probably more) so eventually MC has to take a significant jump. Providers will eventually rebel (anyway, I would) over taking 90% or so write downs on a lot of procedures/doctor charges, etc. EOBs are often interesting reading but YMMV.
 
Koolau said:
But actual medical costs have risen along with inflation (probably more) so eventually MC has to take a significant jump. Providers will eventually rebel (anyway, I would) over taking 90% or so write downs on a lot of procedures/doctor charges, etc. EOBs are often interesting reading but YMMV.
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Medicare took a big jump in 2022 due to the ineffective Alzheimer's drug that the someone paid the FDA to approve.
 
I mentioned EOBs because when I read them, I wonder who's paying for my 90% write-down in, say, an MRI or pain specialist, etc.
 
Golden sunsets said:
Ok got it. Given that this month's number is lower than last month's, if next month's number continues the trend, the final number will trend lower, like the 8.6 vs 8.7.
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For the 2023 COLA to be less than 8.7%, the CPI for September will have to be less than 291.067, which would be 0.2% lower than August on a month to month basis. Certainly possible.
 
And, unless I’m mistaken, for those of us still deferring our start date for SS we get an additional 8% on top of this increase.

Whoa…
 
If we get a railroad strike, the natural consequence will be more costly goods. Which would drive the Sept inflation numbers higher?
 
LARS said:
And, unless I’m mistaken, for those of us still deferring our start date for SS we get an additional 8% on top of this increase.

Whoa…
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That's per year waited. Per month, it's 2/3%. YMMV
 
38Chevy454 said:
If we get a railroad strike, the natural consequence will be more costly goods. Which would drive the Sept inflation numbers higher?
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Right now it looks like 50/50 or worse possibility. I hear that Amtrak is canceling long trips due to likelihood of a strike. I believe Congress can theoretically intervene but I don't see that happening ahead of an election but I'm a resident pessimist so YMMV.
 
Gumby said:
Based on today's CPI-W release, the 2023 Social Security COLA will be 8.7% if there are no further changes in September. The CPI-W went down again from 292.219 to 291.629 between July and August 2022.
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That's good news.
I guess this also raises the Social Security payments of future retirees.
I'm not getting SS in 2023 but in 2026. I suppose I should see a bump in my future SS income.
 
38Chevy454 said:
If we get a railroad strike, the natural consequence will be more costly goods. Which would drive the Sept inflation numbers higher?
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The brunt of an inflation effect from a railroad strike would probably be reflected in the October numbers rather than September. It's a timing thing.
 
If we see inflation similar to that of the 70s and 80s the SS increase will seem like nothing much. In fact people who think they have ”won the game” may find out the game was never over. It was just a very long time out.
 
Chuckanut said:
If we see inflation similar to that of the 70s and 80s the SS increase will seem like nothing much. In fact people who think they have ”won the game” may find out the game was never over. It was just a very long time out.
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Yep, could go from comfortable lifestyle to budget tightening. We saw our recent electric bill about double from the previous year. Of course we also had record heat wave.
 
Higher SS, 20 year TIPS at 1.36 + CPI inflation, and and one year Treasuries hitting 4%. Party time!
 
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