Medicare premiums Affecting Social Security

Rising Medicare premiums threaten to wipe out increases in Social Security payments next year, leaving millions of retired and disabled Americans without a raise for the third- straight year. How a typical Social Security recipient would be affected, using projections from the trustees who oversee both programs.

2011

Average monthly Social Security benefit: $1,077.

Monthly Medicare Part B premium: $96.40*

Monthly payment: $980.60.

2012

Monthly Social Security benefit: $1,090, based on a 1.2 percent increase.

Monthly Medicare Part B premium: $113.80.

Monthly payment without hold-harmless: $976.20.

Actual monthly payment: $980.60, based on a provision that prevents Part B premiums from reducing Social Security payments for most beneficiaries.

* = Medicare Part B premiums have been frozen at the 2009 level of $96.40 for about 75 percent of beneficiaries because there has been no increase in Social Security payments.

Sources: 2010 trustee reports for Medicare and Social Security; Social Security Administration