Tom’s Senior Corner August 2021
This is both good and bad news. Every year Social Security adjusts the amount you receive from Social Security based on inflation. That is the good news, the bad news inflation this year has hit the highest level in the last decade.
Estimates for the 2022 COLA (Cost Of Living Adjustment) range from 4.5 percent from Moody’s Analytics to 6.1 percent from The Senior Citizens League. AARP estimates that the 2022 COLA at 5.5%. In contrast, the increase that went into effect in January 2021 was 1.3 percent, or an average of about $20 a month for individuals. A 5.5 percent increase would boost the average monthly benefit by about $77.
This increase will help pay for the anticipated increased cost of Medicare Part B which we currently pay $148.50 per month. The increased cost is due the increased costs of drugs covered by Medicare.
As I had mentioned in July that the new drug Aduhelm, used to treat the symptoms of Alzheimer’s disease, will cost Medicare $56,000.00 dollars per year for each patient being treated. The only method that Medicare has to cover the increased cost is to increase the cost of Medicare Part B. The Medicare Part B increase could offset all or part of the 2022 COLA increase.
SHIBA Volunteers are available Monday through Friday at One West Main Street, Suite 303 in Medford. You can call 541 857-7780 for an appointment to discuss issues regarding Social Security, Medicare, and Drug or Supplemental or Advantage Insurance plans.