Our recent Blogs have outlined financial changes coming from government-controlled entities (including the U.S. Tax Code, Social Security, and Medicare, especially as Cost-of-Living Adjustments (COLAs) are unequally applied to each. This past week brought further data releases, in the form of Medicare premium increases for both the Base Cost and IRMAA add-ons. IRMAA stands for Income-Related Monthly Adjustment Amounts, which are applied to many Medicare enrollees, based on their income.
Last week, we made a simple observation. Every year, the government demands a larger portion of our purchasing power.
This week, we are able to offer further evidence to support our viewpoint, using just-released adjustments (increases) to Medicare premiums. Instead of matching the 2.5% Social Security COLA, Medicare premiums are increasing about 5.9%, and deductibles paid out-of-pocket before benefits kick in are rising nearly 7.1%. Both erode our purchasing power on a monthly basis.
On the Income side of our primary Social Program, Social Security, we explained that the COLA for Social Security monthly benefit payments would be 2.5% for 2025. On the Expense side, Medicare Part B and Part D premiums for enrollees are usually extracted by automatic deduction from Social Security monthly benefits. For most people, these costs remain hidden, as relatively few Americans regularly visit the Social Security website.
Doing some simple math in our personal income/expense ledgers, we find that net benefits to our nation’s senior citizens have once again been diminished (with the difference going directly to Uncle Sam). So predictable, and so egregious.
COLAs have long been unfairly applied, in our opinion. However, among the most egregious mandates in this arena are IRMAA surcharges for Medicare Part D Prescription Drug Plans. Social Security recipients who do not even subscribe to Part D, but have incomes above government-prescribed limits, are assessed Part D IRMAA monthly surcharges. These taxpayers receive zero benefits from the Plan. In whose world does this sound fair and reasonable?
Once again, America’s “seasoned citizens” will experience a setback in their lifestyles. When costs to taxpayers are increased through clandestine transactions, such as IRMAA surcharges, our lifestyles quietly continue to ebb.
This message is hardly in the spirit of the Season, but our intent is always to provide current and accurate information, whether positive or negative.
Happy Thanksgiving to all.
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