Social Security Announces 2.0 Percent Benefit Increase for 2018

[taxout]

While I believe the Naval Hospital on Guam does not accept Medicare, the public Guam Memorial Hospital and the new private Guam Regional Medical City both do.

 

http://www.guampdn.com/story/news/2016/01/17/grmc-now-accepts-medicare-medicaid-patients/78832922/

 

Of course these are relatively small hospitals without the broad range of specialties or expertise you'd find in a major metropolitan hospital in the Mainland.

 

(Note that HK Express stopped its pretty cheap service between HK and Guam a few months ago, though they still fly to Saipan, where you can also get Medicare coverage..)

[ToS2014]

On 10/14/2017 at 3:50 PM, retarius said:

Medicare doesn't cover you over here in Thailand....or anywhere outside the US. I don;t bother with it.

It is mandatory to be enrolled in Medicare pt B if you have TRICARE.

[serpent32]

On 10/15/2017 at 10:29 AM, Pib said:

Military retirement and VA disability rates will increase 2%.

https://militarybenefits.info/cola-cost-of-living-adjustments/

https://militarybenefits.info/va-disability-rates/

 

Yes I actually looked up those exact same 2 articles right after reading this post.  I wasn't expecting to see a raise this year because they were talking about actually rounding down our COLA to pay for the new Veteran's Choice Program but instead we're actually going to see a pay raise by 2% the biggest raise we've ever received since 2012.  That'll be nice.  I haven't done the math but I wonder how much 2% will actually impact our pensions.  

[Pib]

9 hours ago, serpent32 said:

Yes I actually looked up those exact same 2 articles right after reading this post.  I wasn't expecting to see a raise this year because they were talking about actually rounding down our COLA to pay for the new Veteran's Choice Program but instead we're actually going to see a pay raise by 2% the biggest raise we've ever received since 2012.  That'll be nice.  I haven't done the math but I wonder how much 2% will actually impact our pensions.  

Whether Donald and Congress implement rounding down is still up in the air. Rounding down is widely used in other govt pension/benefit programs so it don't surprise me that the VA wants to also to save a little money in one program in order to increase funding in another program....then Donald can brag about how he increased funding in one VA program and completely fail to mention the cut/reduced funding in the other VA program.   But usually rounding down only saves the govt money and the beneficiary's expense ....that's why rounding methods are commonly used for benefit/pension payments.

 

But just taking the current year rates, increasing them my 2% to the penny, and then rounding down to the whole dollar should get you real, real close.  But note there are some VA rates like Aid & Attendance (A/A) rates that may not change with COLA/may be a set value since the rate tables show them as whole dollar amounts unlike the basic disability VA rates which are reflected to the penny.   Will just have to wait and see but just using a straight 2% should get you real, real close.

[JimGant]

Quote

So, wait and see. The last time SS went up, the increase was, at the same time taken back due to Medicare premium going up the same amount.

It could be worse -- you might not be one of those folks whose medicare premium increase is capped at the "hold harmless" rate. However, based on the following article, this year, with the 2% cola, the shoe may be on the other foot, i.e., the hold harmless crowd will now pay the full Medicare premium increase out of their cola.

https://www.reuters.com/article/us-column-miller-socialsecurity/column-big-social-security-cola-will-be-offset-by-medicare-premiums-idUSKBN19D1J0

 

Edited October 17, 2017 by JimGant

[Pib]

Yeap, some in the past years Hold Harmless (Protected) crowd, which really don't exist this year since a COLA will occur, may see their entire COLA increase go to the current Medicare Part B premium of $134/mo if their current SS pension is high enough.  

 

Supposedly the current average retiree is paying a Part B premium of around $109/mo since they were saved by the Hold Harmless rule in years passed.   Not others pay more but we are talking the current Part B many pay.  Let's say the average retiree's 2% COLA increase on their SS pension worked out to $25/mo.  That entire $25 may go towards the current Part B premium standard rate which will probably remain $134.    

 

Now for many of the Non-Protected folks from years past (approx 30% of the Part B paying population) who are currently paying $134 they should not see a premium increase this year since several articles indicates Part B basic premium may stay at $134 for next year.   People in this group would see their Part B premium remain unchanged and therefore would not have their 2% COLA increase eaten by Part B.

 

However for a person who was protected by the Hold Harmless rule in the pass and escaped the "full basic" Part B premium, like the current $134, could very well see their entire 2% COLA increase go to their new Part B premium because it will be "payback time."    Basically, it will be payback time for those years that the "Non-Protected" group had to absorb the entire Part B premium increase  for the entire Part B population.   The law is written this way so everyone eventually ends up paying the basic Part B premium....of course it also ends up boning the Non-Protected group in years when no COLA increase occurs.

 

Here's a 13 Oct 17 USAToday article that talks the issue in a little different way than the Reuters Jun 17 article that Jim posted.   

[ToS2014]

On 10/16/2017 at 11:16 PM, serpent32 said:

Yes I actually looked up those exact same 2 articles right after reading this post.  I wasn't expecting to see a raise this year because they were talking about actually rounding down our COLA to pay for the new Veteran's Choice Program but instead we're actually going to see a pay raise by 2% the biggest raise we've ever received since 2012.  That'll be nice.  I haven't done the math but I wonder how much 2% will actually impact our pensions.  

well, lets do some clever math.....2K in VA pension with a 2% increase will give you appx $B1,200 ish, or if you are living in USD $40 ish

[serpent32]

On 10/18/2017 at 10:44 PM, ToS2014 said:

well, lets do some clever math.....2K in VA pension with a 2% increase will give you appx $B1,200 ish, or if you are living in USD $40 ish

Well I'm getting 100% plus military retirement pay I'm just glad to be getting paid.  In total it's almost $4,000 dollars a month.  My Military Retired Pay was cut a little bit because I get 100% from the VA.  

[serpent32]

On 10/18/2017 at 10:44 PM, ToS2014 said:

well, lets do some clever math.....2K in VA pension with a 2% increase will give you appx $B1,200 ish, or if you are living in USD $40 ish

It's $3,400 plus dollars a month just from the VA alone although I'd rather have my body back the way it was.  

[Curt1591]

On 10/14/2017 at 3:50 PM, retarius said:

Medicare doesn't cover you over here in Thailand....or anywhere outside the US. I don;t bother with it.

Imagine how much the US government could save if the allowed us to use Medicare overseas, not to mention what the competition would do to the obscene Stateside healthcare pricing!

[Pib]

22 minutes ago, Curt1591 said:

Imagine how much the US government could save if the allowed us to use Medicare overseas, not to mention what the competition would do to the obscene Stateside healthcare pricing!

Expect that for a couple of reasons. 

 

From a standpoint of allowing US folks on Medicare to go outside the US to receive care reimbursed by Medicare the US govt would have practically no influence over the foreign hospitals/doctors...and those foreign hospitals/doctors would not interface with Medicare online claim/reimbursement IT systems as the Medicare law requires doctors/medicals services to file claims directly with Medicare.  Only in some exceptions can a person individually submit a Medicare claim.  And yea, you can get a lot of medical services/medications cheaper outside the U.S., but once again the quality of some of those services/medications may not be up to U.S. standards but I see that as a lesser problem.   

 

And if Medicare simply denies Medicare coverage outside the U.S. then those people who get medical care overseas and/or just live overseas then Medicare is saying money big time as Medicare will not provide any reimbursement.  Less people to provide medical coverage even if those people were allowed to pay Part B premiums.  Medicare has a huge unfunded obligation right now....in the order of 30 Trillion dollars (trillion with a T).  See below.     Heck, the more reasons Medicare can figure out to deny coverage (like living overseas) just saves them money.

 

 

Quote

 

Unfunded obligation]

Medicare’s unfunded obligation is the total amount of money that would have to be set aside today such that the principal and interest would cover the gap between projected revenues (mostly Part B premiums and Part A payroll taxes to be paid over the timeframe under current law) and spending over a given timeframe. By law the timeframe used is 75 years though the Medicare actuaries also give an infinite-horizon estimate because life expectancy consistently increases and other economic factors underlying the estimates change.

As of January 1, 2016, Medicare’s unfunded obligation over the 75 year timeframe is $3.8 trillion for the Part A Trust Fund and $28.6 trillion for Part B. Over an infinite timeframe the combined unfunded liability for both programs combined is over $50 trillion, with the difference primarily in the Part B estimate. These estimates assume that CMS will pay full benefits as currently specified over those periods though that would be contrary to current United States law. In addition, as discussed throughout each annual Trustees' report, "the Medicare projections shown could be substantially understated as a result of other potentially unsustainable elements of current law." For example, current law effectively provides no raises for doctors after 2025; that is unlikely to happen. It is impossible for actuaries to estimate unfunded liability other than assuming current law is followed (except relative to benefits as noted), the Trustees state "that actual long-range present values for (Part A) expenditures and (Part B/D) expenditures and revenues could exceed the amounts estimated by a substantial margin."

 

 

[Curt1591]

Quote

 ... you can get a lot of medical services/medications cheaper outside the U.S., but once again the quality of some of those services/medications may not be up to U.S. standards ...

I had a bout with Atrial Fibrillation. Went in for ablation therapy  @ Bangkok Hospital. The OR was amazing. There was a wall of monitors. The assisting staff consisted of about 10, including a MB anesthesiologist. The recover was scheduled for 2 nights. However, we did a 3rd night because it was such a nice room, complete with my own mini-bar. The entire episode billed out at around $30K. 
 

The lead doctor happens to also practice in the States. For giggles, I asked what this would have cost there. He said it would be in the ballpark of $100K. But, The OR would not be quite as heavily equipped, the OR staff would be smaller, and I would stay in a semi-private ward for 2 nights. 

The biggest reason for obscene costs is "health insurance", an invention of the hospital industry itself. When money is no object, and the payer has no say in the game, who is going to economize? Penn Jillette, of "Penn and Teller" fame, made a fantastic analogy. He said that when people on a budget shop for food, they may stick to pasta, rice, and cheaper cuts of meat. But, if they had "food insurance", it would be King Crab and Kobe beef everyday!

[Pib]

Medicare Part B premium for 2018 to be $134...same as $134 for 2017.  See this Medicare webpage. 

 

And here's the Medicare webpage for the 17 Nov 17 news announcement regarding 2018 premiums.

 

So, for those folks who have paying significantly less than $134/month due to being protected under the Hold Harmless rule, I expect most/all of your 2% Social Security increase will go towards your new Part B premium amount.

 

 

Quote

The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same amount as in 2017. Some beneficiaries who were held harmless against Part B premium increases in prior years will have a Part B premium increase in 2018, but the premium increase will be offset by the increase in their Social Security benefits next year.

 

Edited November 19, 2017 by Pib

[Pib]

I checked my social security online account a few minutes ago (haven't checked it for over a month), and I see they have 2% COLA amount now reflecting in a person's pension amount before any deductions such as Medicare, taxes, etc., are applied.

[Curt1591]

Now, you can afford that extra serving of moo ping!