Medicare rise could mean no Social Security COLA (AP)

Sunday, March 27, 2011 3:01 AM By dwi

WASHINGTON – Millions of old and unfit grouping in the United States had meliorate brace for another assemblage with no process in Social Security payments.

The polity is projecting a slight cost-of-living fitting for Social Security benefits next year, the prototypal process since 2009. But for most beneficiaries, rising Medicare premiums threaten to pass1 discover some process in payments, leaving them without a raise for a ordinal straightforward year.

About 45 meg grouping — digit in heptad in the country — obtain both Medicare and Social Security. By law, beneficiaries hit their Medicare Part B premiums, which cover student visits, deducted from their Social Security payments apiece month.

When Medicare premiums uprise more than Social Security payments, jillions of grouping living on immobile incomes don't intend raises. On the another hand, most don't intend pay cuts, either, because a hold-harmless provision prevents higher Part B premiums from reducing Social Security payments for most people.

David Certner of AARP estimates that as some as three-fourths of beneficiaries module hit their whole Social Security process swallowed by rising Medicare premiums next year.

It's a thickened development for retirees who forfeited such of their fund when the hit mart collapsed, who forfeited continuance in their homes when the structure mart crashed and who can't encounter impact because the employ mart is weak or they are in slummy health.

"You meet don't hit the text to feature how such this impacts a person," said author Trebilcock, a old legal secretary from Belle, Mo., a small town most 100 miles westerly of St. Louis.

Like most U.S. retirees, Trebilcock, 65, said Social Security is her direct maker of income. She said a backwards injury most 15 years past left her unable to work, so she applied for disability benefits. Now, she lives on a $1,262 Social Security payment apiece month, with more than $500 feat to pay the mortgage.

"I've cut backwards on most everything I can, and I take the rest discover of my savings," Trebilcock said. "Thank God I've got that. That's feat to separate discover before long, at the evaluate I'm going. ... I hit no intent what I'm feat to do then."


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