Understand which type works best for you. Medicare supplemental or Medigap premiums currently tend to be higher, often by hundreds of dollars, than those of Medicare Advantage Plans. In fact, there are Medicare Advantage Plans that offered hospital, doctor, and prescription drug coverage for Social Security benefits are one of the few sources of retirement benefits to be adjusted for inflation. The intention is to protect the buying power of benefits when prices increase. But retirees frequently notice that over time their Social Security benefits don't buy as much as they used to. This happens when the annual COLA doesn't keep pace with the increases in costs typically experienced by older and disabled beneficiaries. .In 2016 there was no COLA at all, and in 2017 the COLA was just 0.3 percent. During that time a special provision of law known as "hold harmless" protected about 70 percent of Social Security recipients from reductions to their Social Security benefits due to increasing Medicare Part B premiums. .Yet since 2010, when the Social Security Trust Fund first started running a cash deficit, budget negotiators have repeatedly attempted to enact Social Security reforms that would decrease benefits. One of the most widely - discussed proposals would switch to a more slowly - growing inflation measure — the chained consumer price index (CPI) — to calculate the annual cost – of – living adjustment as a means of slowing the growth of Social Security benefits and other inflation - adjusted federal programs. Although the proposal was not adopted in the past, primarily due to fear of public backlash, "It remains a key feature in many plans for reducing the deficit," Johnson says. ."The Congressional Budget Office said in 2019 that the bill would likely hamper some pharmaceutical development due to lower ‘potential global revenues' but predicted that ‘the effects of the new drug introductions from increased federal spending under the bill on biomedical research would be modest and would almost all occur more than 20 years in the future.' On the other hand, it estimated that the bill would save more than 0 billion in drug spending over the next decade." .Key Bills Gain Support in the House and Senate .As much as the protection against reduction of Social Security benefits is appreciated, Barbara has been frustrated about high Medicare premium costs after years of low or no COLA growth. "It's been 36 months since I've had any raise in my net operating Social Security, but my actual household costs continue to go up," Barbara told us. "This isn't fair to retirees," she adds. .The Democrats are likely to use reconciliation to move President Biden's COVID-19 relief measure through Congress while sidestepping a GOP filibuster. .Congressional inaction on the debt ceiling is a growing concern of TSCL's for several reasons. If a default on the federal debt occurs, Social Security benefits would likely be delayed, and millions of seniors living on fixed incomes would suffer financially. In addition, doctors who treat Medicare patients would likely see postponements in their reimbursements from the federal government, and access to quality medical care would be jeopardized for beneficiaries. .To quickly determine whether a portion of benefits is taxable, taxpayers should take their adjusted gross income, and add any nontaxable interest, plus one - half of Social Security income. If the amount is over the thresholds shown then a portion of benefits are taxable. (For more information, see IRS publication 915 Social Security and Equivalent Railroad Retirement Benefits for worksheet and help in preparing tax returns). premiums in 200Don't let the lure of zero premiums fool you, because you will pay in other ways, especially if you get sick. .What do you think of these proposals? TSCL wants to hear from you! Please take TSCL's 2017 Senior Survey. .A study by the Health Care Cost Institute found that people receiving observation and other outpatient services in the hospital paid four times more out-of-pocket than inpatients in 2012— an average of per inpatient versus 9 for outpatients. Under Medicare, outpatients usually have co-payments or co-insurance for each service from doctors, test, prescription drug, and other hospital services. .After the drug executives announced they would not meet with the President, he went on Twitter and accused the pharmaceutical industry of running ads that lied about his new executive order. .What is the current status of the Notch issue? .In addition, two new cosponsors – Congressmen Jim Langevin (RI-2) and Gregorio Kilili Camacho Sablan (MP) – signed on to the Protecting and Preserving Social Security Act (H.R. 3302), which was recently introduced by Congressman Ted Deutch (FL-22). If adopted, his bill would base the COLA on the CPI-E and cover the cost by removing the Social Security payroll tax cap for high earners. H.R. 3302 now has nine cosponsors in the House. .TSCL Announces Support for PRIME Act .If the bill doesn't pass into law one way or the other it would be the first time in 60 years the legislation has failed to be enacted. .On Tuesday, the federal government shut down for the first time in seventeen years due to a legislative impasse between leaders in the House and Senate. Four days in, neither side has wavered much from its position. Leaders in the Senate are pressuring the House to pass a "clean" temporary funding measure, while leaders in the House continue to demand provisions that would delay or defund the Affordable Care Act.