Medicare beneficiaries received some good news during the recent federal budget negotiations. Due to the fact that there is no Cost of Living Adjustment (COLA) for 2016, coupled with an increase in Medicare Part B premiums, 2016 monthly Social Security payments would have been smaller in 2016. But a last minute budget deal prevented that calamity. The budget that passed and was signed by President Obama did not include any Social Security (COLA) increases, but it did remove or delay the Medicare Part B premium increases for the majority of seniors. The net result: most seniors will not see a decrease in their monthly payments.
Additionally, Americans receiving Social Security Disability payments were spared a potential 20 percent decrease for 2016 due to a long-standing deficit in the fund. That’s because, of the 12.4 percent combined employee and employer contribution to the Social Security trust funds only 1.8 percent is allocated to the disability fund. Congress alleviated some of the burden by increasing this contribution to 2.37 percent over the next three years, giving Congress time to come up with a long-term solution.Read More