The chart above shows the cost-of-living increase in Social Security over the last decade. The adjustment for 2018 will be 2%. That's not enough to keep up with inflation (on items seniors spend the most on), but it's the largest increase since 2012.But don't celebrate that tiny increase yet. That's because about 70% of all Social Security recipients will not see any raise at all on their monthly check. That's because the increase in the Medicare deduction taken out of their check will eat up all of the increase.
Here's how CNBC explains it:
Here's why: A so-called "hold harmless" legal provision has protected the majority of retirees from increased Medicare Part B premiums if it would reduce their Social Security benefits. It affects people whose premiums are deducted from their monthly Social Security check. (Note: New Medicare enrollees are not protected by the provision.) Premiums for Part B, which primarily covers doctors' visits and other outpatient care, can change annually, as it is expected to fund about 25 percent of the the program's annual expected per-beneficiary spending. For 2017 the premium was $134, with higher earners paying more. Yet because of the hold harmless provision, the actual amount paid by most Medicare recipients is about $109 monthly, research from the The Senior Citizens League shows. So even if Part B premiums don't rise in 2018, the average retiree will see that extra $25 go toward paying the difference between their monthly Social Security check ($109) and the Part B cost ($134). This means that 70% of Social Security recipients will fall further behind in 2018 (just like they have for the last five years -- as medicine, health care, rent, groceries, gas, clothing, and other costs rise while their check does not.
And it won't get any better for them in 2019. That's because the $500 billion cuts to Medicare (included in the GOP Tax cuts for the rich bill) will happen in that year. They can expect the Medicare deduction in their checks to again go up to help pay for the tax cuts for the rich.
The Republicans have once again shown they don't care about seniors (or anyone but the rich and corporations).
