I'm sure many of you have heard about Social Security's cost of living adjustment (COLA) of .3% this year. What some of you may not know is how it will work with Medicare. At best, those receiving the adjustment will see an extra five or so bucks on their check every month. One of the most frustrating things about this, which is so tedious that it almost shouldn't be reported on in the first place, is the increases in medicare premiums will essentially devour the COLA. Simplistically, the COLA will be cancelled out for most Americans, especially those who have their Medicare Part B premiums paid by a deduction from their Social Security benefits. To dip further in this subject, feel free to check out this article. Also, here is another one with a breakdown of people in different situations and how this will affect them.
J.K.Logic Wrote: Sounds like the COLA is doing its job then, right? It should match inflation rises over time. If it's a wash, that's a good thing. I'll throw at back at you as I'm curious, is it mostly a wash, or should the COLA be slightly higher to cover more inflation?
I agree there is. It's at least a little frustrating to see something so talked about, only to learn it doesn't really matter. I wonder what the Gov's process is for the COLA. How do they really go about deciding on a number?