From one of our Elder-Law attorney friends Ira Leff
As the old joke goes, there’s good news and bad news…
The good news is that your Social Security, Civil Service, and V.A. benefits are going up in January by 1.3 percent. So, if you are currently receiving $1,000 per month gross income, starting in January that amount will be $1,013.
The bad news is that your Medicare Part B premium is also going up. Most folks currently pay $144.60 per month which is taken out of their Social Security. The new amount will be $148.50.
So, if your gross Social Security benefit is $1,000 in 2020, your net is $855. With your cost of living increase, your gross benefit in 2021 will be $1,013, but your net will be $864. The net increase of $9.00 per month is barely enough to pay for your hand sanitizer and COVID masks!
Unfortunately, the Part B premium increase is not the only bad news. Your Part B deductible is also going up from $198 this year to $203 in 2021. So, if your Medigap insurance does not cover the Part B (Medical) deductible, there goes another $5.00.
And, the nursing home copayment, which is $176 per day for days 21-100 this year, is going up to $185.50 per day in January. The increase applies even if you enter the nursing home in 2020.
Let’s all try to focus on the good news this week of Thanksgiving! I am very thankful for my clients and their loving and supportive families. Stay healthy!
- Estate Planning under the Biden Administration:
What's changing and how to react- April 7, 2021
- Thanksgiving Items - November 25, 2020
- Do you receive Social Security, Civil Service, or VA Benefits:
There's some good news and some bad news- November 23, 2020