Boomers will pay 25% more for Medicare next year

“Don’t trust anybody over 30,” was the mantra of the Baby Boom generation. Now well over 30 themselves, Boomers have started to retire in record numbers. But because of a little-known provision in the Medicare law, those who enter their supposedly golden years are about to get a nasty surprise.

According to a report by the American Institute for Economic Research, new Medicare enrollees will have to pay 25 percent more than current enrollees for the same benefits, due to a “hold harmless” provision that protects already retired seniors from rising Medicare premiums if they don’t receive cost-of-living increases in their Social Security checks, as has happened during the last two years.

To make up the rising cost of Medicare Part B, which covers physician services and other outpatient expenses, new enrollees will be charged more for the same benefits, which The Annual Report of the Medicare Trustees estimates will be a minimum of $120.10 per month. High-income individuals will pay even more.

“This raises a serious question: Why should people in identical circumstances pay different amounts for the same government-financed program?” asks AIER president Charles Murray.

Murray pointed out that the Medicare premium increase will hit retiring Boomers just as their Social Security benefits remain frozen and their private retirement accounts are worth much less than they were before the recession, leaving them more financially vulnerable than earlier retirees.

Graying Boomers might just wind up changing their generational motto to: “Don’t trust anybody from the government.”

Baby BoomersBeltway ConfidentialNEPUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

A San Francisco Unified School District program that gave would-be teachers extra training in the classroom has lost a key partner. <ins>(Kevin N. Hume/2019 S.F. Examiner)</ins>
USF ends partnership with SFUSD in teacher residency program

District launched training effort to improve low retention rates for new hires

Roger Marenco, president of operators union TWU Local 250-A, speaks at a news conference outside the Muni Kirkland Yard announcing Muni will not be increasing fares on Wednesday, June 10, 2020. (Kevin N. Hume/S.F. Examiner)
SFMTA’s union leader encourages riders to say ‘thank you’ to their Muni operators

A conversation with Roger Marenco, president of Transport Workers Union of America, Local 250A

The Rev. Norman Fong of the Chinatown Community Development Center joined San Francisco city leaders and community partners in a “Campaign for Solidarity” at Civic Center Plaza on Saturday, Apr 17, 2021. (CraigLee/Special to the S.F. Examiner)
City launches ‘Campaign for Solidarity’ to combat racial violence

Mayor London Breed, the city’s Human Rights Commission and community leaders launched… Continue reading

San Francisco’s live music clubs have been closed for more than a year. (Twitter screenshot)
S.F. venue recovery fund begins accepting grant applications

Entertainment presenters may apply from April 21-May 5

It’s time to break the code of silence and end the stigmatism against infertility, which is fairly common. <ins>(Shuttterstock)</ins>
Struggles with infertility are common

We all can support friends, ask legislators to mandate appropriate insurance

Most Read