On the recordMarch 3, 2010
In October of 2008, the Social Security Administration, SSA, announced that beneficiaries would receive a 5.8-percent COLA in 2009, the biggest increase since 1982. This increase was primarily due to record high energy prices. Energy prices have since declined resulting in a 2.1-percent year-over-year decline in the consumer price index, CPI, as determined by the Bureau of Labor Statistics. Because current law precludes a negative COLA, the SSA announced this past October that there will be no COLA in 2010. It was also announced that there will be no increase in Medicare Part B premiums for current beneficiaries, except for those with incomes greater than $85,000--single--and $170,000--married. I understand the concerns about Medicare Part D and Medigap premiums. Unlike Part B premiums--which cannot go up when there is no COLA--these other premiums are not subject to such a restriction. However, beneficiaries have other options to reduce these premiums. For example, there may be a competing drug plan with lower premiums. I always encourage people to reevaluate their coverage on an annual basis to see if there is another plan that offers the benefits they need at a lower price. Or, there may be a Medicare Advantage plan that covers both prescription drugs and provides coverage similar to a Medigap plan for a lower premium.
