Senior citizens collecting social security may see their payments increase more than they ever have in 2022.
However, the extra cash may never be seen as higher prices and increased healthcare premiums happen at the same time. They will likely eat up the excess funds.
The COLA increase is around 6-6.1%, but the increase for Medicare Part B monthly premiums is expected to rise 6.2%, making it so that increase will never be seen.
Consumer prices are continuously rising as well, and the entire reason the COLA increase is happening is to help seniors keep up with those prices.
While the increases are being given, they simply aren’t helping and social security recipients find themselves still struggling.
One big reason is whenever a hike is given, Medicare takes it.
Congress is looking into using a different formula to calculate increases, so they better align with the actual cost of living as prices rise.
The way it’s usually determined is by taking into account the prior three months before announcing the increase in October, and then the increase goes into effect that January.
In 2021 the increase was only 1.3%.
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