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

Just Posted

San Francisco Giants manager Gabe Kapler, pictured in July at Oracle Park, says team members simultaneously can be “measured and calm” and “looking to push the accelerator.” (Chris Victorio/Special to The Examiner)
How Gabe Kapler sets the tone for Giants’ success with strategy, mindset

‘There’s no doubt in my mind that he’s the hands-down manager of the year’

Artist Agnieszka Pilat, pictured with Spot the Robot Dog from Boston Robotics, has a gallery show opening at Modernism. (Courtesy Agnieszka Pilat)
Screenshots of VCs, Kanye and tech parties by the Bay

In this week’s roundup, Ben Horowitz’s surprising hip-hop knowledge and the chic tech crowd at Shack15

Speaker of the Parliament of Mongolia Gombojav Zandanshatar said his country and San Francisco face similar challenges on issues including COVID recovery and climate change.<ins> (Kevin N. Hume/The Examiner)</ins>
Mongolian leaders meet with tech, film leaders on city tour

‘I really want San Franciscans to meet the new Mongolian generation’

If he secured a full term in the Senate, Newsom would become the most powerful Californian Democrat since Phil Burton at the height of his career, or maybe ever. <ins>(Kevin Hume/The Examiner)</ins>
San Francisco 49ers quarterback Jimmy Garoppolo (10), pictured at a team practice, connected on 17 of 25 passes in a Week 1 victory over the Detroit Lions. (Courtesy Terrell Lloyd/San Francisco 49ers)
Jimmy vs. Trey: The NFL’s most ridiculous QB controversy

Let’s not forget who led the 49ers to the Super Bowl

Most Read