Lincoln Emery isn't panicked yet about the $5 monthly increase in his Medicare Part B premiums this year. After taxes, he's receiving about $38 in cost-of-living adjustments to his Social Security and military pension benefits.
But as the premiums escalate, the 77-year-old Hamptonville, N.C., resident worries that if he is lucky enough live into his 80s or 90s, those annual increases will disappear, and his income of roughly $22,000 will be eroded by inflation.
"I own my home free and clear and only have to take care of myself and my dog, so it isn't hitting me too bad yet," he said.
Still, he's noticed the impact of gasoline costs, and his grocery bills have gone up substantially in the last year. His out-of-pocket costs for prescription medicines have gone up, too.
For many of today's seniors, the Social Security situation is no longer a policy debate. It is as real as the shrinking gap between rising Medicare premiums and the Social Security cost-of-living adjustments that were intended to keep seniors in step with inflation.
Nearly 10 million seniors will see their entire Social Security cost-of-living increase eaten up by Medicare Part B premiums within about five years, a new study by TREA Senior Citizens League shows. The advocacy group wants Congress to approve higher cost-of-living adjustments for seniors receiving Social Security.
Seniors with the lowest incomes will be hit first, because they have the lowest cost-of living adjustments. Women make up a disproportionate share of this group because of historically lower incomes, the Alexandria, Va., group reported.
"Many of our older, more vulnerable citizens are facing the prospect of very real hardship because of their declining spending power, and this study raises serious concerns about their ability to pay for the basic necessities of life," said Shannon Benton, TREA's executive director.
While Social Security cost-of-living adjustments have increased less than 14 percent in the past five years, Medicare Part B premiums have soared 60 percent, said Mary Johnson, the group's Social Security policy analyst, who directed the study.
Eventually, the rising Medicare premiums will catch up to the Social Security increases for many seniors.
For most, the dollar amount of the increase in their Medicare premiums can go no higher than the level of their Social Security adjustments, so they will have to deal with inflation eroding their buying power but not with smaller checks.
