Just months after the Social Security Administration announced the largest COLA increase in 40 years, Medicare has turned around and raised the monthly premiums for Medicare Plan B by $21! This increase will effect nearly 56 million people who are enrolled in the health plan.
The recent COLA increase from the Social Security Administration was about 5.9% which averages out to about a $70 increase monthly for some recipients.
While this may seem like beneficiaries will still be able to spend more and still keep more in their pockets from the SSI COLA increase, it’s important to note that Medicare Plan B is a supplementary plan.
Meaning its very likely other bills seniors need to pay are going up for other health insurance costs, as well and will chip away at the foundations of the COLA increase. Everywhere we turn these days prices are rising.
AARP senior VP for government affairs, Bill Sweeney commented on this concern aimed at the pharmaceutical industry, saying, “Once again, American seniors and taxpayers will pay the price for the outrageous pricing behavior of big drug companies.”
It affects everyone when medical and drug costs rise, but it especially hurts those on fixed incomes, such as our fellow retirees.
In 2021 Congress expressed that it intentionally limited the increase to Medicare for recipients, but in 2022 they might be making up for that with the largest cost increase in the history of the program.