Many people have a misconception about Medicare. It’s often thought that this program provides free healthcare coverage for retirees. In reality, this is far from the truth.
In fact, there’s a monthly premium for Medicare Part B. This premium depends on the modified adjusted gross income reported on an individual’s Form 1040 from two years prior. The average premium is $170.10 per person — this comes out to a total of $2041.20 for the year.
Rising Premiums
Medicare premiums have been steadily rising over the past few years. Automatically deducted from benefit payments, these premiums lower the income many rely on.
And if this deduction wasn’t difficult enough, seniors are also expected to pay deductibles, copays, and other costs not covered by the program. These additional expenses can cause a lot of anxiety for senior citizens relying on a fixed monthly income.
COLA Calculations
Every year, Social Security payments are adjusted in an attempt to match the rising costs that inflation causes. However, rising healthcare costs are never considered.
By neglecting to consider healthcare costs for senior citizens, the Cost-of-Living Adjustment (COLA) never provides enough of an adjustment for seniors relying on their benefits for a majority of their income. Instead, it creates a deficit, forcing senior citizens to find other ways to make necessary medical payments and live comfortably.
In fact, from 2000 to 2020, healthcare premiums increased by 5.9%. Social Security benefits didn’t match this increase. Rather, over the same amount of time, Social Security benefits saw a 2.2% increase. This sizable difference between the two creates financial insecurity for senior citizens, especially those who rely on their benefit payments as a large portion of their monthly income.
Make A Stand
It is time we took a stand for all seniors and allow them more financial security. That’s why Senior Security Alliance is working to pass our bill, The Senior Citizens Bill of Rights. This groundbreaking bill gives senior citizens seven rights, guaranteeing them more financial security.
Among these rights is right number three; this right declares that any calculations towards the annual COLA consider the ever-increasing prices of healthcare. With this extra consideration, senior citizens would be able to spend less time worrying about their finances and more time enjoying retirement.
Join us in urging the politicians in Washington to pass our bill now.
