{"id":83732,"date":"2020-10-07T17:02:12","date_gmt":"2020-10-07T14:02:12","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-why-social-security-and-medicare-recipients-could-fall-further-behind-in-2021\/"},"modified":"2020-10-07T17:02:12","modified_gmt":"2020-10-07T14:02:12","slug":"opinion-why-social-security-and-medicare-recipients-could-fall-further-behind-in-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-why-social-security-and-medicare-recipients-could-fall-further-behind-in-2021\/","title":{"rendered":"#\n  Opinion: Why Social Security and Medicare recipients could fall further behind in 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ee2e935ed3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ee2e935ed3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-why-social-security-and-medicare-recipients-could-fall-further-behind-in-2021\/#COLA_increase_for_next_year_doesnt_look_good\" >COLA increase for next year doesn\u2019t look good<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-why-social-security-and-medicare-recipients-could-fall-further-behind-in-2021\/#Paul_Brandus\" >Paul Brandus<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Why <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security and Medicare recipients could fall further behind in 2021<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"COLA_increase_for_next_year_doesnt_look_good\"><\/span>\n  COLA increase for next year doesn\u2019t look good<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"EEBBF41C-0804-11EB-9304-D04EE837E258\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       For the 64 million Americans who get Social Security, it\u2019s one of the most anticipated announcements each year: How much their cost-of-living adjustment (COLA) will go up for the next year. <\/p>\n<p> For 2021, it\u2019s not likely to be much: Perhaps as little as 1.3%. That would lift the average monthly benefit, currently $1,503, to $1,522 and change. Meantime, disabled workers and their dependents would see a similar increase, raising their average monthly benefit to $1,274. <\/p>\n<p>Read: How rich is the middle class?<\/p>\n<div class=\"paywall\">\n       The estimate comes from the The Senior Citizens League (TSCL), a Washington-based nonprofit group that tracks issues of concern to older Americans. \u201cThe 1.3% estimate is based on the same methodology used by the Social Security Administration itself,\u201d says Mary Johnson, a Social Security and Medicare policy analyst for the TSCL. <\/p>\n<div data-layout=\"\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaVideo\n            \n            \n  article__inset\n        article__inset--type-InsetMediaVideo\n            article__inset--\n  \"><\/p>\n<figure class=\"media-object-video article__inset__video media-object-video--standard\">\n<div class=\"wsj-media-summary clearfix\">\n<div class=\"strap-container\">\n<h4 class=\"strap\" itemprop=\"description\">\n<\/h4><\/div>\n<\/p><\/div>\n<div class=\"video-container article__inset__video__player\" id=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-src=\"http:\/\/www.marketwatch.com\/news\/61AD778B-C50D-4EC0-A82F-2942D613BC47\" data-format=\"standard\" data-esplash=\"\" data-msplash=\"\" data-suppressheadline=\"\" data-verticalstill=\"\">\n  <\/div><figcaption class=\"wsj-article-caption article__inset__video__caption\">\n          80% of older Americans can&#8217;t afford to retire &#8211; COVID-19 isn&#8217;t helping<br \/>\n        <\/figcaption><\/figure>\n<\/div>\n<p>       \u201cWe take the 12-month average rate of inflation,\u201d Johnson says, \u201cusing data from September 2019 through August 2020 and dividing it by 12, and that\u2019s what we get.\u201d She\u2019s quick to add that it\u2019s a bit more complicated than that. Inflation in the third quarter (July through September) is also compared with third quarters in prior years\u2014using something known as \u201cCPI-W\u201d\u2014the Consumer Price Index for Urban Wage Earners and Clerical Workers. This is the same formula that the Social Security Administration itself uses, and that\u2019s how the 1.3% estimate is calculated. <\/p>\n<p>Read: Half of Americans over 55 may retire poor<\/p>\n<p>A bit complicated perhaps, and if you think it sounds chintzy\u2014as many seniors do\u2014you\u2019re probably right. <\/p>\n<p>One reason this is so is because CPI-W reflects prices paid by working adults under the age of 62 (before the minimum Social Security eligibility age) and places greater weight on things like gasoline and electronics and less weight on things like medical expenses. <\/p>\n<p>Read: The problem with \u2018aging in place\u2019<\/p>\n<p>This <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly doesn\u2019t reflect true spending habits of seniors. Older Americans, far more likely to be out of the workforce, drive less, for example. In terms of electronics, my guess is most aren\u2019t buying a lot of X-Boxes and big screen TVs, either. But medical expenses? This, obviously, is a sizable and growing chunk of senior spending. But when it comes time to calculate Social Security\u2019s cost-of-living increase each year, it\u2019s underrepresented. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Consider just two huge expenses that seniors have to cope with: rising drug prices and Medicare Part B premiums. Pharmaceutical companies have jacked up drug prices on more than 800 occasions this year, according to GoodRx, which tracks prices that Americans pay. It says the average cost of 42 key medicines has already gone up 3.3% this year. <\/p>\n<p>Read: This 70-year-old supersaver has a new habit: spending like crazy<\/p>\n<p>As for Medicare Part B premiums (which helps cover medical expenses, such as doctor\u2019s services, outpatient services and other medical supplies), they rose nearly 7% in 2020, to $144.60 a month. Deductibles also rose about 7% this year to about $198. <\/p>\n<p>How much could these things go up in 2021? The Medicare trustees forecast back in April that the standard 2021 Part B premium could rise 6% next year to $153.30. Their report added, however, that the long-term impact of the coronavirus was unknown (it still is), which makes forecasting more difficult. <\/p>\n<p>But seniors can be sure of this: Both premiums and deductibles are going higher, and by the looks of things, these increases will be well beyond whatever increase they\u2019ll get from Social Security. <\/p>\n<p>The bottom line: Seniors, who lost ground to inflation in 2020, are likely to lose even more ground in 2021. <\/p>\n<p>This has hardly escaped their attention, says Johnson, who says her in-box is full of angry emails from seniors. <\/p>\n<p>\u201cPeople are getting angry,\u201d she says. \u201cThese low COLAs aren\u2019t anywhere near what they need to be.\u201d<\/p>\n<p>I\u2019ve mentioned in this space before that when this awful year began, some 15 million Americans aged 62 and over were living in poverty. This could explode some 67% over the next decade to nearly 25 million, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.economicpolicyresearch.org\/retirement-equity-lab\" class=\"icon none\">according to a study<\/a> by the Retirement Equity Lab (ReLab) at New York\u2019s The New School. <\/p>\n<p>At the time, ReLab economics professor Teresa Ghilarducci told me that \u201cWe have to be honest about the likely reality: Millions of older Americans are going to have to accept austerity and a drop of living standards.\u201d <\/p>\n<p>That\u2019s an assessment that Johnson agrees with. Rising costs that are outs<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>ping what tens of millions of seniors receive each month is having a \u201cdeep and profound impact on them;\u201d she adds this negative trend will continue unless and until the government recalibrates the true cost of living for them. <\/p>\n<p><em>Have a comment or question about anything you\u2019ve read here\u2014or retirement in general? Please email me: RetireBetterMarketWatch@gmail.com<\/em>. <\/p>\n<div data-layout=\"\n              inline\" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetCommentingPromo\n            \n            inline\n  article__inset\n        article__inset--type-InsetCommentingPromo\n            article__inset--inline\n  \"><\/p><\/div>\n<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Paul Brandus\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Paul_Brandus\"><\/span>Paul Brandus<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7BEEBBF41C-0804-11EB-9304-D04EE837E258%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Why Social Security and Medicare recipients could fall further behind in 2021 &#8221; COLA increase for next year doesn\u2019t look good For the 64 million Americans who get Social Security, it\u2019s one of the most anticipated announcements each year: How much their cost-of-living adjustment (COLA) will go up for the next year. For&#8230;<\/p>\n","protected":false},"author":1,"featured_media":83733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-83732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/83732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=83732"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/83732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/83733"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=83732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=83732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=83732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}