In a move that may strain the budgets of some retirees, the standard monthly premium for Medicare Part B enrollees will rise by $8.80 a month next year, to $144.30. That follows a $1.50 monthly boost in 2019.
The bump to Medicare Part B — the part of the program that covers most necessary services and supplies outside hospitalization — makes times just a little tougher for a population that’s already burning cash reserves to cover medical expenses.
Citing a study from West Health and Gallup, the Washington Post notes that between April 2018 and April 2019, seniors withdrew about estimated $22 billion from long-term savings for health-care-related expenses (an average of $3,789 annually per senior).
The rise in Medicare Part B premiums also adds insult to the injuries predicted for Social Security by 2035.
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According to Social Security’s annual report, the trust funds they pull from will run out in 16 years.
What does this mean, exactly? Contrary to the popular concern that Social Security is running out of money entirely, people reliant on Social Security checks will have to adapt to a 20% decrease in earnings after 2035.
Since the money Social Security pulls in isn’t enough to cover all of its dues, it’s been tapping into a nearly $3 trillion trust fund.
Though it’s possible money may shift if new taxes are put in place, seniors dependent on Social Security should start to prepare for the deficit sooner rather than later
“[Congress] either need[s] to cut benefits or they need to raise the payroll tax and that’s obviously a problem because voters don’t like hearing those two things,” financial advisor Matt Carroll told CBS affiliate WSBT.