Friday night is normally a great night to go out and have fun, and generally goof off. It is decidedly not a night that most people pay attention to the news.
The government understands this, which is why they normally announce their bad news on Friday night. This was the case on Friday last week when the Centers for Medicaid and Medicare Services revealed a shocking 14.5% rise in Medicare premiums.
But it’s OK, says the Biden White House. Social Security has gone up by 5.7%, so everything will be alright.
Biden’s inflation is now going at a yearly rate of 6.2%. Medicare premiums will rise by 14.5%. The Social Security cost of living adjustment is just 5.7%. I know that math is “racist” and there is no wrong answer, but it seems like senior citizens are getting shafted.
“It “will consume the whole yearly cost of living adjustment of Social Security receivers with the lowest benefits, of around $365 per month,” said Mary Johnson, a Medicare and Social Security policy analyst for an advocacy group, called The Senior Citizens League. “Social Security receivers with high benefits should be able to pay for the $21.60 per month rise, but they might not end up with as much money left over as they were hoping for.”
“Medicare premiums have normally increased at a much faster rate than Social Security’s yearly adjustments, the group said. And a lot of the 2022 boost in Social Security benefits will be taken up by inflation, which is also increasing fast.”
The covid pandemic and related medical costs for seniors was one reason for the increase.
But the CMS is now mentioning another reason for the huge increase — a brand new drug that is said to treat Alzheimer’s disease. It is very controversial since its benefits are unsteady at best. Plus it is very expensive.
“CMS reported that part of the rise for 2022 was due to the uncertainty about how much the agency will be paying to treat people with Aduhelm, a new Alzheimer’s drug approved by the FDA in June against the objections of its advisers. Some people say it will cost around $56,000 per year per person. Medicare is deciding whether to fund the drug on a case-by-case basis.”
“Because Aduhelm is given in physicians’ offices, it will be covered with Medicare Part B, and not Part D plans, which pays for medications purchased at pharmacies. Traditional Medicare recipients have to pay up to 20% of the price of most Part B medications, which would mean around $11,500 in out-of-pocket costs for people prescribed Aduhelm.”
Author: Steven Sinclaire