Higher Medicare Premiums Could Partially Erase Social Security Increases

Although 55 million Social Security beneficiaries will receive a 3.6 percent raise in benefits — their first since 2009 — higher Medicare premiums could wipe out part of those increases, according to a Christian Science Monitor report.

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CMS is expected to announce 2012 Medicare rates as early as next week, and according to officials who oversee Medicare and Social Security, hikes to Medicare Part B premiums could eat a fourth of their Social Security increases.

Medicare Part B premiums have been frozen at 2009 levels for about 75 percent of Social Security recipients because there have not been increases in Social Security payments, according to the report.

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