It looks as if recipients of Social Security benefits will go another year with no increase in benefits. According to an article from the Associated Press, the government is expected to give the first cost-of-living adjustment (COLA) since 2009; however, rising Medicare premiums will erase any increase in payouts. This will leave millions of retired and disabled individuals with no increase in Social Security benefits for the third year in a row.
Law states that these COLAs are to be determined each year by the government based on rates of inflation. In other words, when prices go up, so do payments.
About 45 million people receive both Medicare and Social Security. Most will not see a drop in payments due to the rising health care premiums because they are protected by hold-harmless provision, which ensures that payments will not decrease.
The trend is expected to only get worse. In fact, the government expects by the year 2078, retirees will be spending one-third of their benefits on Medicare premiums and their Medicare prescription drug program.
As benefits slowly begin to dry up, receiving them will become increasingly difficult. The Indiana Social Security Disability Lawyers with Fleschner, Stark, Tanoos & Newlin can answer many of the questions you have about your benefits in a simple, straightforward manner. See some of the frequently asked questions they receive here.