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Some Seniors to See Reduced Social Security Benefits

New report claims Medicare costs will eat larger share of checks

June 11, 2009
Close to seven million seniors — one in every seven — will receive a smaller Social Security check next year, according to a new analysis by The Senior Citizens League.

Millions of other seniors who do not have their Medicare premiums automatically deducted from their checks will also have fewer Social Security dollars leftover next year.

These seniors will be affected because their Social Security Cost of Living Adjustment is forecast to be zero next year, while their Medicare Part B, Part C and/or Part D premiums are forecast to rise.

According to TSCL's analysis, approximately three million seniors will endure cuts because they are not protected by a "hold harmless" provision that prevents the vast majority of beneficiaries from receiving smaller Social Security checks in years when Medicare Part B premiums exceed the COLA. Two groups of seniors will not receive hold harmless protection in 2010:

• MEANS TESTING: 2,121,500 beneficiaries who pay higher premiums due to Part B "means testing." Individuals with adjusted gross incomes above $85,000 and couples over $170,000 are affected.

• NEW ENROLLEES: 848,000 new enrollees will pay the 2010 premium rate, forecast by Medicare's Trustees to be $104.20 per month, instead of the current rate of $96.40 per month that tens of millions of seniors will continue to pay next year due to hold harmless.

• MEDICARE PARTS C & D: More than 3.8 million other seniors will see smaller Social Security checks next year due solely to likely increases in Medicare Parts C and D, for which no hold harmless provision exists.

"It's bad enough that seniors will have to endure rising costs next year without an increase in their Social Security checks — but to actually cut checks for millions of seniors in this economy borders on cruelty," said Daniel O'Connell, TSCL chairman. "Our members are already unable to afford their prescriptions, rent, and air conditioning. We simply can't survive year-after-year of cuts."

The group also says millions of other seniors may also be affected, but its estimate includes just those that will have automatic reductions to their Social Security checks.

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