Did You Get Your COLA increase? Here’s why you may not. - Forbes
There has been a lot of talk about the historically high Cost of Living Adjustment (COLA) Social Security beneficiaries will receive this year. Certainly less talked about is that some beneficiaries won’t see all of that COLA increase in their Social Security payment, and here’s why: the cost of Medicare Part B coverage has gone up – from $148.50 per month to $170.10 per month, and that additional Part B premium cost comes out of your Social Security payment. And even more unfortunate for those with higher income, their Social Security payment could even be less because of a rule known as “IRMAA” (the Income Related Medicare Adjustment Amount). IRMAA adds a supplement to the Part B (and Part D) Medicare premium for those with income over certain thresholds, but it also negates the so-called Hold Harmless Provision which normally prevents Social Security payments from being reduced because of a Medicare premium increase. All of this is explained thoroughly in this Forbes article by certified financial planner David Rae. Click here to read more.