Social Security and Medicare Figures for 2012 Announced - November 10, 2011

Social Security and Medicare Figures for 2012 Announced - November 10, 2011

The Social Security Administration has announced that for the first time since 2009, a cost-of-living adjustment (COLA) will be paid to Social Security beneficiaries and Supplemental Security Income (SSI) recipients. Monthly benefits will increase 3.6% starting in January 2012 for Social Security beneficiaries and starting on December 30, 2011, for SSI recipients. According to the Social Security Administration, the average increase in monthly benefits will be approximately $43. Despite many media reports predicting that the Social Security COLA increase would be offset by higher Medicare Part B premiums, the Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly Medicare Part B premium will be $99.90 in 2012, $15.50 less than in 2011. However, because the premium for most Medicare beneficiaries has been frozen at $96.40 (the premium rate in 2008) for the past three years, premiums for most people will increase by $3.50 in 2012. Beneficiaries who have higher incomes (a modified adjusted gross income of more than $85,000 for an individual or $170,000 for a couple) will pay more than $99.90 because they are required to pay an income-related surcharge. While costs vary, the average premium for a Medicare Part D prescription drug plan in 2012 is estimated at around $30, approximately the same as in 2011. And Medicare Advantage premiums will be 4% lower, on average, in 2012 than in 2011, according to CMS. Here are some other important Social Security figures for 2012: The maximum taxable earnings limit will be $110,100 ($106,800 in 2011). The retirement earnings test exempt amount for beneficiaries under full retirement age will be $14,640 per year ($14,160 in 2011). The retirement earnings test exempt amount for beneficiaries in the year full retirement age is reached will be $38,880 per year ($37,680 in 2011).

Social Security and Medicare Figures for 2012 Here are some other important Medicare figures for 2012: The Medicare Part B deductible will be $140, down from $162 in 2011. The Medicare Part A deductible for inpatient hospitalization will be $1,156, up from $1,132 in 2011. Beneficiaries will pay an additional $289 per day for days 61 through 90, up from $283 in 2011, and $578 per day for stays beyond 90 days, up from $566 in 2011. Beneficiaries in skilled nursing facilities will pay a daily co-insurance amount of $144.50 for days 21 through 100 in a benefit period, up from $141.50 in 2011. To view the Medicare fact sheet announcing 2012 figures, visit www.cms.gov. We'll continue to pass along timely, relevant information--providing fresh and interesting ways for you to engage and motivate your clients.