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Healthcare cost to take increasingly larger bite out of SS payments

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rated:
An interesting Reuters story about the fate of seniors going forward:

Linky 

Here is a pull quote (my bolding):

A couple turning 65 this year receiving average Social Security benefits will pay 59 percent of lifetime Social Security benefits for healthcare; the same couple aged 55 this year can expect to pay out 92 percent when they reach Medicare age.

Younger persons with living parents might also find this story thought provoking.

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rated:
It's hard to see how that could be accurate. Out if pocket spending for people on Medicare is not that high.

https://meps.ahrq.gov/data_files/publications/st441/stat441.shtml

"Among people age 65 and older, average out-of-pocket expenses for those with Medicare and supplemental public coverage ($605) were markedly lower than for those with Medicare only ($1,177) or Medicare and supplemental private coverage ($1,362)"

Even at 5%+ annual inflation that won't come close to eating up half their SS

rated:
Due to the hold harmless provision, it means that people need to rethink whether delaying claiming their social security is worth it because the gains would be eaten up by the medicare premiums.

http://www.cnbc.com/2017/05/18/reuters-america-column-one-proble...

rated:
avalon6 said:   Due to the hold harmless provision, it means that people need to rethink whether delaying claiming their social security is worth it because the gains would be eaten up by the medicare premiums.

http://www.cnbc.com/2017/05/18/reuters-america-column-one-proble...



Good point.

But it should not be a big risk...

http://www.reuters.com/article/column-miller-socialsecurity-idUSL2N1IJ12N

rated:
jerosen said:   It's hard to see how that could be accurate. Out if pocket spending for people on Medicare is not that high.

https://meps.ahrq.gov/data_files/publications/st441/stat441.shtml

"Among people age 65 and older, average out-of-pocket expenses for those with Medicare and supplemental public coverage ($605) were markedly lower than for those with Medicare only ($1,177) or Medicare and supplemental private coverage ($1,362)"

Even at 5%+ annual inflation that won't come close to eating up half their SS

  don't see how that is accurate since medicare premium alone is $2k, the number is probably at least 5k https://www.fool.com/retirement/2017/02/05/heres-the-average-americans-annual-medicare-bill.aspx which will be on course to reach 20k due to government counterfeiting.

rated:
Well I quoted a gov site directly and the fool article does too. However they seem to wrongly assume that nobody is in Medicare part d which nearly doubles their cost estimate.

I don't think the OOP figures cited includes the premium necessarily.

rated:
The "hold harmless" provision is only for one year. What it does is if medicare rates go up more than the COLA, the increase is limited to the amount of the COLA for those collecting SS. The shortfall is then billed to new recipients and those that have medicare, but not SS. Historically, this "hold harmless" provision rarely kicks in.

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