Social Security Increase Beats Rising Medicare Costs
The 2013 numbers are in, and all-in-all, are looking pretty good. The cost of living adjustment for Social Security will cover the slightly higher Medicare Part B premium, as well as the increased deductibles for Medicare Part A & Part B. Furthermore, as a result of the Affordable Care Act many will save a significant amount of money on their prescription drugs and preventive care costs.
The cost of living increase for people receiving Social Security will be 1.7%, which works out to about $19 extra per month for the normal beneficiary. Retired workers will receive a little more.
The Medicare Part B premium, which is closely watched and inescapable, will increase $5 per month to $104.90. The majority of Americans don’t even notice this payment as it is deducted directly from their Social Security Check. Therefore, the only difference most people will see is they are getting an additional $14 per month. Win!
Those who are making more than $85,000 per year individually or $170,000 per year as a couple will receive a pretty steep increase in their Medicare Part B premium. They will have to pay an additional $42 per month for a total premium of $230.80. Ouch.
The Medicare Part A & Part B deductibles will also be increasing in 2013 to $1,184 and $147 respectively. The Medicare Part A deductible is covered by almost every Medicare Supplement Plan, so most people will never notice. The Medicare Part B deductible, however, is not covered by popular plans including Plan G and Plan N. People who have purchased these plans will notice they will pay $7 more for the Medicare Part B deductible.
Overall, the average Medicare recipient will be better off in 2013 as they will make an average of $180 per year more than they did in 2012.