The Chestnut Blog

I  know for many of my clients that about this time each year they are waiting to hear what the cost of living increase will be in their social security check as well as what their deduction will be for the Medicare Part B premium. As for the social security increase we have learned that it will be zero, no additional benefit. That’s not a happy thought, but it is a straightforward matter and no further thought required.

Now for those Medicare Part B premiums! This is where it might require a Ouija Board to figure out where you fall in the cost matrix. For those individuals who were fortunate enough to be on the social security computer system in 2009 and whose income falls under $85,000 as a single or $170,000 as a joint filer there will be no change. The deduction will remain at $96.40. So let’s see,  for them no increase in social security benefit, but no increase in the Medicare Part B deduction either….so it’s a standoff. However, if you are a new enrollee into social security in 2010 you will find yourself having a deduction at the rate of $110.50 or virtually 15% higher.

Somehow I find this to be rather unfair. Don’t get me wrong now, I am not advocating an increase in cost for everyone and I am very happy to see a hold on the deduction amount for a majority of enrollees. Somehow, though, I have this mental picture of an older person or couple who may have been forced into retirement and now required to live on considerably less income. Due to the fact that they retired in 2010 and were not in the social security computer system in 2009, as indicated above, they will be required to be pay the higher Medicare deduction of $110.50. It just doesn’t make sense to me.

Then there is a whole additional set of deduction levels that reach as high as $353.60 a month depending on income levels and whether you are an individual or joint filer. Somehow I can be less disparaging about this supplementary group of deduction amounts as the idea of paying more if one truly earns more has been in place for a number of years. But for so many low income individuals who will join the ranks of Medicare next year, I just find it quite discriminating for them to pay a higher deduction simply because they weren’t in the computer this year!