You may recall that the Medicare Part B premiums are means-tested. The adjustments based on 2006 income tax returns have just been published to recipients. The regular premium has been increased to $96.40. For any recipient with income over $82,000, the premium is increased. The amount of the increase depends on the amount of income. The additional monthly premium for 2008 will range from $25.80 to $142, for a maximum cost of $238.40. I does not matter how much social security you receive, the up-charge in premium is based solely on your 2006 income. It does not matter that you paid into the system for your working life (or at least the life of Medicare), the implied promise of equal treatment has been broken. Furthermore, it is my understanding that the income limits are not adjusted for increases in the cost of living, although the premiums are. This will affect more and more people as time goes by.
This is a portent of possible changes to the old age portion of the social security program. That program is already subject to means testing via the tax on a portion of social security payments. Some politicians are talking about a more explicit means-test, reduction of benefits depending on other income.
We need to let our Congressional representatives know that these changes are unacceptable. The best way to save the program for future generations and avoid putting more money into the hands of the politicians is private accounts.
Save Social Security.
Subscribe to:
Post Comments (Atom)
3 comments:
Save the rich! Their Medicare premiums go up more than anyone else! Give me a break, the real cause of these premium increases is the fact that our entire health care system is in crisis. The way we pay for health care in this country is crazy and way, way out of whack. Fix that and your complaints will go away.
Apparently you mean SS is "means tested" because the rich don't have to pay as much of a portion of their payroll taxes as the rest of us do? Or maybe you're just complaining that the rich have to pay more taxes if they earn a lot of income after they start getting SS benefits? Either way...boo hoo...it really hurts to be rich...
Increase the retirement age slowly, gradually over time to match the increase in the amount that Americans are living and working longer. Allow the rich to pay their fair share of SS payroll taxes. Problem fixed for an exceedingly long, long time to come...
We barely made the cutoff for the increased premium - our taxable 2006 Social Security benefits pushed us over the first means tested floor. I retired at 12/31/2006; my husband also is retired. Our 2007 income is <45% of our 2006 income, less than half of the floor. But Soc. Sec. says it doesn't matter - our 2006 income controls, contrary to their publication and to what other area offices are doing. We were told to amend our 2006 return and decrease the income, but doing that would result in a fraudulent return for which we could go to jail. And no one at the local SS office knows which form is the correct one to use to appeal. We are not rich: when you work 70 to 90 hours a week for decades to earn that money, sometimes at 2 or 3 jobs, that is middle class!
Some politicians are talking about a more explicit means-test, reduction of benefits depending on other income.
Post a Comment