Concerns have been expressed about the future of Medicare premiums. With all the economic uncertainty that exists, there have been some dire predictions made. To help better understand what fact is and what is fiction, I wish to offer the following information, which is based on current law.

A hold-harmless provision under Social Security prevents recipient’s net Social Security from decreasing when the increase to the Medicare Part B premium is greater than the increase to Social Security by virtue of a COLA increase. Since there wasn’t a COLA increase the last two years, the Part B premium has been held to $96.40. However, the hold-harmless clause does not apply to high-income retirees ($85K for a single individual and $170K for a married couple), new retirees or individuals covered jointly by Medicare and Medicaid. Note the thresholds for high-income retirees have been frozen for 2011-2019. High-income retirees account for about 25% of all retirees. The standard Part B premium for 2012 is estimated to be $106.60. The premiums for upper-income retirees are expected to range between $149.20 and $341.00 depending upon the individual’s level of income.

Please remember the Chevron Retirees Association adds value to your membership by being there help you with any problems you may have with your benefits. For questions or help please contact Al Horan by email at awhoran@verizon.net or by phone at 972-964-1787.