Cost-of-Living, Medicare Part B Changes Coming in 2012

Earlier in the year the Social Security Administration (“SSA”) announced a long-awaited cost-of-living adjustment (“COLA”) that will take effect in a few weeks. Several other changes are forthcoming for Social Security beneficiaries, and in this post we highlight some of those changes:

  • As expected, the COLA will be 3.6 percent in 2012; there was no COLA in 2010 or 2011
  • The increase will take effect in January 2012 for the 55 million beneficiaries of Social Security benefits
  • Supplemental Security Income (“SSI”) beneficiaries will begin receiving increased payments on December 30, 2011
  • The maximum amount of earnings subject to the Social Security tax will increase from $106,800 to $110,100
  • The SSA expects about 10 million workers to pay more as a result of the raising of the tax ceiling out of 161 million total workers who pay Social Security taxes each year
  • The Medicare Part B premium will increase about $3.50 a month for seniors, while the annual deductible will be dropping to $140
  • As retirees likely already know, Part B premiums come directly out of Social Security benefits each month, so the level of both is important for seniors to know

The COLA comes as welcome news to Social Security beneficiaries, as they have now waited three years for it. Will any of the changes coming in 2012 have an impact on you and your family?

Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys

Tags: , ,

Leave a Reply

Your email address will not be published. Required fields are marked *