Millions of retired and disabled people in the United States had better brace for another year with no increase in Social Security payments. The government is projecting a slight cost-of-living adjustment for Social Security benefits next year, the first increase since 2009. However, it would affect their healthy lifestyle.
Medicare premium increases could wipe out any gain from a Social Security cost-of-living-adjustment next year for three-quarters of Medicare beneficiaries, estimates AARP. About 45 million people receive both Medicare and Social Security.
David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase swallowed by rising Medicare premiums next year.
It is a tough development for retirees who lost much of their savings when the stock market collapsed, who lost value in their homes when the housing market crashed and who can not find work because the job market is weak or they are in poor health.
Employers and even some younger people would pay more for health insurance if lawmakers raise the eligibility age for Medicare, a study to released on last Tuesday concludes.
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The findings suggest that the emerging debate over Medicare's future matters not only to seniors and those nearing retirement, but also to a broad cross-section of Americans. It would eventually affect everyone’s healthy lifestyle.
The report from the nonpartisan Kaiser Family Foundation shows that federal taxpayers would save billions if the Medicare eligibility age, currently 65, were increased by two years. But people ages 65 and 66, employers — along with states, Medicare recipients and even some younger families — would see ripple effects that add to their costs.
Those costs could total more than $2,000 a year for some individuals.
Years ago, lawmakers decided to gradually increase the Social Security retirement age to 67 for people born in 1960 or later. However, they left the Medicare eligibility age unchanged. Now some policymakers are saying the qualifying ages for the two programs should be yoked together — at 67 or even higher.
Too many people retire before being eligible for Medicare or employer retirement benefits. They do not apprehend how costly or difficult it is to find medical insurance for persons older than 50. Someone who retires early and keeps healthy until age 65 might be all right with little or no insurance. Nevertheless, the rest should be more apprehensive for their healthy lifestyle.
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