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Updated: Saturday October 11, 2008

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Some Part D enrollment tips

Having the wrong Part D Plan could be as expensive as buying premium gasoline for your car, when regular does the job just as well- - but for less money. Are you sure you have the best Part D Plan for your area, at the best price, and that best meets your prescription needs? Please notice the information "box" immediately above, that includes sections with this color, this color, and this color. Click the "X" in that box for our tool that will enable you to see the best plan, for the best price, that meets your unique prescription needs.

                          On this page you will find:

-2009 Social Security COLA Estimated *  

-2009 Medicare "B" Premium Announced *  

-2008 Social Security Cola "Increase" *

-2008 Medicare Part B Premium Increase *

-More Part B Premium Information*

  Click to add SeniorArk to your favorites!  

SPECIAL NOTE TO SENIORS:  Welcome to SeniorArk! Thousands of you are finding this page while searching for COLA and Part B information.

After reviewing those items, please take a couple minutes to have a look around our site. We are not-for-profit, and a SENIOR resource site like nothing you have ever seen

Enjoy!   SeniorArk Volunteers

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Want to know what the search engines think of us? Go to Yahoo and search for "social security cola 2009" and we come up as the # 1 result, ahead of the Social Security Administration! On Google we are # 2.  We give you the very latest--always!!

 

 

 Updated: October 11, 2008

 * 2009 Social Security COLA (cost of living adjustment)

The 3rd quarter will tell the tale (July-August-September)

 

In late January 2008, the Congressional Budget Office published a little-noticed estimate that forecasts seniors would receive just a 2.8 percent increase in their Social Security checks beginning in January, 2009.

 

SeniorArk observes that this figure is too low, based on the monthly trends of the CPI-W increases through August, 2008. The critical months to watch for gauging increases in the Social Security COLA are in the third quarter: July-August-September. 

 

The actual increase will be based on the increase in the CPI-W from the third quarter of 2007 to the third quarter of 2008. The official COLA for 2009 should be announced in mid-October, 2008.      (Read: Explanation of exactly how the COLA is figured)

 

Check this page regularly for updates to the 2009 COLA. We should be able to publish, in this space, the final number on the morning of October 16, 2008.

SeniorArk.com

"Seniors helping Seniors meet the challenges in retirement"

 

2009 COLA WATCH 

Bureau of Labor Statistics COLA-Related News Releases

(4 entries thru October 11, 2008)

 September 16, 2008 and October 3, 2008

On a seasonally adjusted basis, the CPI-W decreased 0.2percent (2/10 of one percent) in August, following a 0.9 percent increase in July.

(I didn't notice it going down, did you?)

With one more month (September) to feed into the equation, if we have no inflation or deflation in September, this should translate to a COLA adjustment in 2009 Social Security checks of just about 6.0%. The report for September, the final month for determining our COLA, will be reported on October 16, 2008. Stay tuned to this space for the latest.

All morning on October 3, 2008 we searched the web for ANY hint of a suspected trend for inflation in September, and thus the third quarter. Precious few economists seem willing to speculate. We did find a video that was produced by briefing.com on September 8. On that video they say the inflation rate will drop for both August and September. We now they were correct for August, and we are still awaiting September. If they are correct, the Social Security COLA will likely drop below the 6% level. If you want to be tortured by this dry, technical video, here it is:    

August 14, 2008

 ----------------------------------------------------------------------
The latest Consumer Price Index news release
(http://www.bls.gov/news.release/pdf/cpi.pdf)
was issued today by the Bureau of Labor Statistics. Highlights are below.
----------------------------------------------------------------------
On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.8 percent in July, following a 1.1 percent increase in June.  The index for all items less food and energy increased 0.3 percent, the second straight such increase.

August 14, 2008       (CPI-W is used for S.S. Cola)

CPI for Urban Wage Earners and Clerical Workers (CPI-W)

On a seasonally adjusted basis, the CPI-W for Urban Wage Earners and Clerical Workers increased 0.9 percent in July.

August and September are the 2 other months critical to determining the 2009 COLA. Stay posted. The actual increase will be based on the increase in the CPI-W from the third quarter of 2007 to the third quarter of 2008. The official COLA for 2009 should be announced in mid-October, 2008.

SeniorArk.com

"Seniors helping Seniors meet the challenges in retirement"

 

We are not economists at SeniorArk. Rather, we scour the web and pass on valuable information.

On August 11, 2008 we found this article on dallasnews.com:

  Retirees may see a big boost in benefits

09:22 AM CDT on Monday, August 11, 2008

Senior citizens can look forward to a major increase in Social Security benefits next year. Unless there is a sudden rush of deflation in the current quarter, the increase will be the largest in 25 years.

That's right: the largest in 25 years. Last year, the increase was a very pinched 2.3 percent. Indeed, there hasn't been an increase over 5 percent since 1990.

Just how big will the increase be?

Try 6 percent.

To be more precise, it will be 5.7 percent if the summer holds no inflation. That means if the Consumer Price Index doesn't budge for July, August and September. The benefit increase will be 6.1 percent if inflation runs at the 0.2 percent "core" rate for the same period. And it will be more if inflation is higher than the core rate. The last time there was a larger increase was 1982, when it clocked in at 7.4 percent.

The 6 percent figure was not found in my personal crystal ball.

Anyone can make a very good estimate of future benefit increases simply by reading how the annual benefit increase is calculated by the Social Security Administration and then plugging in the Consumer Price Index figures as they are released.

Here's how it's done...  Read complete article

 

Also read COLA UPDATE  an important article by Mike Causey published by NARFE and Federal News Radio on August 17, 2008.

 

 

Despite a small increase, at least five million people aged 65 and over will remain in poverty, since senior costs are rising significantly faster than the annual Social Security Cost of Living Adjustment (COLA).

 

         See: What is the CPI, how is it figured, and why the heck do I care??

 and: Does the CPI reflect what Seniors must actually spend?

 and: Explanation of exactly how the 2008 COLA was figured

 and: He supports fair Social Security 

        Increases to Reflect Seniors' Higher Costs of Living

 

 and: A simple explanation of inflation and CPI

 

SeniorArk.com

"Seniors helping Seniors meet the challenges in retirement"

 

 

 

 

 

   *Medicare Part "B" Premium: No increase for 2009!!!

     

September 20, 2008   For the first time since 2000, the standard monthly premium for Medicare will not increase next year, the federal government announced Friday.

Premiums for Part B coverage, which pays for physician and outpatient care, some home health services and medical equipment, will remain $96.40 a month, the Centers for Medicare and Medicaid Services (CMS) said. Medicare insures the nation's elderly and disabled.

The decision to hold premiums steady results in part from increased reserves in the Medicare trust fund. The Part B trust fund was reimbursed $9.3 billion earlier this year after officials discovered money had been inadvertently drawn to cover hospice benefits that should have come from the separate Part A hospital fund.

"In the future, we're going to have to go back to raising the premiums to match the increase in expenditures," warned Richard Foster, chief actuary at CMS.

The standard rate applies to individuals with income below $85,000 a year.

The whole thing is explained in a fact sheet the feds put out this morning.

 

The 2009 Part B monthly premium rates to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, qualifying widow[er] with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or who file a joint tax return are: 

Beneficiaries who file an individual tax return with income: Beneficiaries who file a joint tax return with income:

Income-related monthly adjustment amount

Total monthly premium amount

Less than  or equal to $85,000 Less than or equal to $170,000

$0.00

$96.40

Greater than $85,000 and less than or equal to $107,000 Greater than $170,000 and less than or equal to $214,000

$38.50

$134.90

Greater than $107,000 and less than or equal to $160,000 Greater than $214,000 and less than or equal to $320,000

$96.30

$192.70

Greater than $160,000 and less than or equal to $213,000 Greater than $320,000 and less than or equal to $426,000

$154.10

$250.50

Greater than $213,000 Greater than $426,000

$211.90

$308.30

 In addition, the monthly premium rates to be paid by beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at any time during the taxable year are: 

Beneficiaries who are married but file a separate tax return from their spouse:

Income-related monthly adjustment amount

Total monthly premium amount

Less than or equal to $85,000

$0.00

$96.40

Greater than $85,000 and less than or equal to $128,000

$154.10

$250.50

Greater than $128,000

$211.90

$308.30

 

 

  * 2008   Social Security COLA (cost-of-living-adjustment) 

                 (This is what you have been receiving throughout 2008)

  The Labor Department has announced a year-to-year CPI increase of 2.8%, and a core rate (minus energy and food) of 2.1%. They have also announced a Social Security COLA of 2.3% for 2008.   This number floats on a monthly basis, based on the CPI (consumer price index). As of the end of July that adjustment amount stood at 2.3%. After a .2% drop in August (did you feel the drop?) the number stood at 2.1%. September was announced  October 17 at 8:30 AM EDT, and SeniorArk understands the final COLA adjustment for next year to be 2.3%.   A meager adjustment considering the rising cost of Medicare premiums, not to mention gasoline, utilities, food, and on and on. At 2.3%, this would mean only about a $24 per month increase for the average recipient, and less for many. Where are they getting these CPI numbers? They must not shop where we do.

 

 * 2008   Medicare Part B Premium (click for details)

Part B premiums are rising almost five times faster than the annual Social Security Cost of Living Adjustment (COLA) seniors receive each year, which is intended to help them keep up with rising costs. While Medicare Part B premiums will have soared by more than 93 percent from 2001 - 2008, the COLA will have crept up by just 19 percent during the same period.

As of Saturday October 11, 2008, the 2009 Part B Premium has not been announced by Medicare. Check regularly back to this space for the latest developments.

                                                                                   What Social Security giveth,

                                                                                                                                        Medicare taketh

*  MORE PART B PREMIUM INFO

   

SENIORARK READERS:  On October 2, 2007, Medicare announced a much lower increase in the Part B Premium than was expected. However, if you read the SeniorArk article dated October 2, 2007, titled "Part B Premium up 3.1%" , you will notice that the smaller than anticipated increase is merely a slight-of-hand. The pain is being put off for the near future. One wonders how much the upcoming election has affected the announced increase. Pardon our cynicism, but we have seen many examples of government manipulation of figures to serve another purpose. SeniorArk believes that the significance of the article below remains, albeit for the years following the election campaign.

Barbara B Kennelly, President and CEO of  the National Committee to Preserve Social Security and Medicare  states:

 "While a 3.1 percent Part B premium hike may not sound like much, for seniors already facing higher co-payments, out of pocket costs, rising prescription drug fees and doughnut holes this premium news is just one small part of the story. Privatized Medicare and Part D drug coverage continue to leave seniors with healthcare costs which far outpace their cost of living adjustments."...   “Private insurers promised they could provide health coverage for seniors cheaper and more efficiently.  Where are those savings? Instead, seniors are paying higher premiums, co-payments and out of pocket fees thanks to the privatization of Medicare and unchecked national healthcare costs."

 

______________________________________________________________________

 

See: Part D Fiasco - Congress Can Do Better,   Part D In Chart Form,

All about Part D and Medicare,     Survive a Fall into the Doughnut Hole    Medicare Twilight Zone

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What the heck is SENIORARK?          Retirement Housing on LESS than a Shoestring

 

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