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2018 COLA increase likely to be consumed by Medicare premium

Yesterday’s announcement by the Social Security Administration that there will be a 2% cost of living adjustment (COLA) in 2018 was certainly good news for millions of Social Security recipients, but it’s an open question as to whether beneficiaries will actually see an increase in their benefit check.  That’s because yet-to-be-announced 2018 Medicare premiums could take a part, or even all, of the COLA increase away.  For those whose Medicare premium is deducted from their Social Security check, Medicare’s “hold harmless” provision protects their Social Security benefit from going down as a result of a rise in Medicare premiums.  But it doesn’t prevent Medicare from taking any increase in your benefit to offset their rising premiums.  This Forbes article by Janet Novack explains this “got’cha”.  Click here to read more.

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