Credit: Image source: Medicare.gov.
Image source: Medicare.gov.
What if my Medicare premiums go up?
Many retirees pay their Medicare premiums directly from their social security checks, which could put them in quite a bind if premiums were raised at the same time their Social Security checks stood still. Thankfully, there is a law on the books called the "hold harmless" provision that protects the majority of seniors from taking this double hit. Under this provision, Medicare Part B premiums that are deducted from Social Security checks are held steady.
Will I get a raise next year?
While it's too soon to tell if beneficiaries can expect to receive an increase in 2017, the best plan of action is to plan as if benefits will be held steady for a second year in a row. After all, the CPI-W continues to be remarkably tame, mostly owed to the fact that energy prices have fallen so dramatically over the past 18 months. In fact, the CPI-W readout from February 2016 was only 0.7% higher than the same time in 2015, so overall inflation remains remarkably low, hinting that an increase may not be in the cards.
That's probably bummer news for millions, which is why several presidential candidates are calling for reform in order to raise benefits. However, it's completely unclear right now whether any of their proposals will become the law of the land, so until we know more, retirees should be bracing themselves for another year of sideways payouts.
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The article Will Social Security Raise My Benefits? originally appeared on Fool.com.
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