SSA Confirms No COLA in 2011
& Impact on Medicare B Premiums
On October 15, 2010, the Social Security Administration (SSA) confirmed there will be no cost-of-living adjustment (COLA) for 2011.
Although Medicare has yet to release Part B premium information for 2011, 70 percent of people with Medicare will be protected from increases in Part B premiums by the “hold harmless” provision of the Social Security Act. In order to lessen the financial impact of rising Part B premiums on people with Medicare, the provision ensures that the increase in the Part B premium cannot exceed the COLA for a given year. Since there is no COLA for 2011, Medicare consumers who have their premiums directly deducted from their Social Security checks will pay the same Part B premium in 2011 as they pay in 2010. People with Medicare Savings Programs (MSPs), who are not protected by the hold harmless provision, will not see a decrease in their Social Security checks as a result of increased 2011 premiums. Instead, states, which are responsible for paying the premium for people with MSPs, will be required to pay the higher amount.
Others who are not protected by the hold harmless provision include people who will be new to Medicare in 2011 as well as people with incomes above $85,0000 and couples with incomes above $170,000 who are subject to income-adjusted premiums.
Read the Social Security Administration’s press release on COLA for 2011.
-From: SSA Confirms No COLA in 2011 , Medicare Watch, The Medicare Rights Center, October 21, 2010.
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