“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.”