Medicare B standard premiums jumped from current $148.50, up to $170.10, starting in January. A whopping 14.5% increase. Previously the forecast had been a 6.7% increase, so it was a bit of a surprise... at least to me.
On the other hand, the officials had been predicting over the past few years, that some significant rises in Medicare Part B were possible.
Up first is the announcement, which was made late on a Friday evening. Doesn't that always seem to be the case for bad news.
I should point out my premiums are reimbursed via a company I retired from. There are a multitude of people that are not that fortunate.
Probably the thing that irritates me most is captured in the following articles.
CMS officials stressed that while the 14.5 percent Part B premium increase is a stiff one, the Social Security cost-of-living adjustment (COLA) — at 5.9 percent, the largest in 30 years - is estimated to average $71.40 per recipient. So even after the increase in the Medicare Part B premium, most Social Security recipients, whose Part B premiums are typically deducted from their Social Security benefits, will still see a net increase in their monthly check. The COLA goes into effect in January.
The Centers for Medicare and Medicaid Services played down the spike, pointing out that most beneficiaries also collect Social Security benefits and will see a cost-of-living adjustment of 5.9% in their 2022 monthly payments, the agency said in a statement. That's the largest bump in 30 years.
"This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium," CMS said. "Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted."
CPI-W, which is what C.O.L.A. is based on, is like all the CPI indexes... it looks backward to see what inflation has been. That adjustment simply brings pay, etc. back to current pricing, without any adjustments to past purchasing power losses. Which would be about $750 of lost purchasing power, since start of 2020. That would be a lot of money for someone living on $14K per year of Social Security before Part B. That would be $2 per day, which isn't even coffee money for any of these guys, but might be a meal for a lot of people.
Which makes those comments referenced, as a bit insensitive to say the least. They seemed to have missed the class on reduced purchasing power by way of inflation and decided the purchasing power factor was to be ignored.
Basically, it would seem the powers that be, consider the 5.9% C.O.L.A. as "free" money and that the Medicare B crowd should be happy with paying a big portion of that "free" money for Part B. It should be noted if inflation had been lower, say 1.0%, the "hold harmless" clause would have raised the overall Part B premium to offset that as well.
In that 1.0% scenario, the hold harmless clause would have amounted to "0" cost of living adjustment for those making $1,000 per month and less, before Part B deduction and possibly limit next year as well, depending on C.O.L.A. Enough with the ranting... almost.
The law is the law and the raises are quite likely necessary... it is the rather flippant remarks being made.
Of course we should think about another item in the press releases, lest we forget (pun intended) ... setting aside money just in case the controversial Aduhelm et al (Alzheimer's drugs) might be approved and are really, really expensive (why am I not shocked).
Setting aside that money for that purpose would contribute to part of the Medicare B rise, as Congress had stated the fund needed to be made whole starting in 2022.
Now for the political side of all this and yes everything is political. Press coverage of the "Build Back Better" plan has included several mentions of prescription drugs, donut holes and costs to the elderly. Certainly an attempt to appeal to us elderly folks, even though it is a piddling amount within the overall plan.
Of course that is Part D of Medicare, not the Part B, I have been railing about. Expect those lines to be blurred quite quickly. How quickly? I expect the chatter to begin on the Sunday talk shows and then ramp up from there. One party will be talking it up much more than the other. It's all about a bigger agenda... we are nothing more than a political talking point.
An example would be the CNN article was big and bold on their website this morning and now it's pushed to smaller font down the page. Not only is the message important, but the timing as well. I'm such a cynic!
Oh well, another day another dollar, except it is now another $2 a day... lost forever.
