Savvy Senior - 2009 Social Security and Medicare Adjustments
Dear Savvy Senior,
Can you give me a full run-down on the Social Security and Medicare changes for 2009?
Planning Ahead
Dear Planning,
In the midst of all the financial turmoil, Uncle Sam has good news for seniors in 2009! Come January, you and over 50 million other Americans receiving Social Security benefits will get a 5.8 percent raise, the largest since 1982. But that's not all. Medicare also recently announced that for the first time in eight years your Part B monthly premium (which covers doctor and outpatient services) will not go up next year. Here's a rundown on what you can expect in 2009.
SSA Adjustments
To help keep up with inflation, every year since 1975 Social Security has been giving automatic cost-of-living-adjustments (COLAs). For 2009 that adjustment is a 5.8 percent increase, which is the largest in 25 years. The 2009 COLA is figured based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2007 through the third quarter of 2008. Here's a run-down of some other Social Security COLA numbers that may interest you:
- The 5.8 percent increase will mean that the "average" monthly Social Security check for an individual will go from $1,090 in 2008 to $1,153 in 2009 - an increase of about $63.
- The average retired couple, both receiving benefits will see their monthly check go from $1,773 to $1,876.
- The maximum Social Security benefit any worker can get at full retirement age in 2009 will be $2,323 per month.
- The average disabled worker's benefit will increase $58 per month from $1,006 to $1,064.
- The federal standard SSI monthly payment for an individual will go from $637 a month for an individual to $674, and from $956 to $1,011 for a couple.
- The maximum amount of earnings that are subject to the Social Security tax will increase from $102,000 to $106,800.
- Retirees who work and receive benefits but are under full retirement age will see their 2009 earnings limit increased to $14,160 (it was $13,560 in 2008). That limit jumps to $37,680 (up from $36,120 in 2008) the year a worker reaches full retirement age.
2009 Medicare
Your Social Security boost isn't the only positive news. For the first time since 2000, and only the sixth time in Medicare's history, your Part B premium will not be increased from the previous year. Your 2009 Part B premium will be $96.40 per month - the same as in 2008.
The news, however, for wealthier seniors - who make up about 5 percent of Medicare enrollees - isn't as good. Their premiums will be increased based on their income level. Here's how it breaks down. For individuals with incomes of $85,000 to $107,000, or married couples filing joint tax returns with incomes of $170,000 to $214,000, their Part B premium will be increased to $134.90 per month in 2009; individuals earning $107,000 to $160,000 (couples $214,000 to $320,000) will pay $192.70; individuals with incomes of $160,000 to $213,000 (couples $320,000 to $426,000) will pay $250.50; and individuals over $213,000 or couples above $426,000 will pay $308.30.
Other notable Medicare announcements you should know include your Part B deductible, which will not change in 2009. It will remain $135, which is what it has been throughout 2008. But your Part A (hospital insurance) annual deductible will go up $44 in 2009 to $1,068 for hospital stays up to 60 days. That increases to $267 per day for days 61-90 and to $534 a day for days 91-150.
Savvy Tips: For more information on the 2009 Social Security cost-of-living adjustments visit www.socialsecurity.gov or call 800-772-1213. And for details on the 2008 Medicare changes call 800-633-4227 or visit www.cms.hhs.gov.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit www.savvysenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" book.
Reegister for Montgomery Flu Clinic
Registration begins for Senior Flu Vacination, 65 and older, or any adult with chronic health problems. Clinic is October 29 at the Otto Kaufman Center. Health dept. 908-359-8211 X 227.
Seniors A2Z Contest Awards Respite Time-Off for Caregivers
Princeton, NJ: Caregiving is one of the biggest challenges anyone faces in life. Being a caregiver is a difficult and exhausting task, both physically and mentally. Caregivers selflessly donate a great deal of their time and energy to someone else’s needs, often neglecting their own.
Seniors A2Z is asking caregivers to share their experience using the resources and help found on Seniors A2Z a free website for a chance to win a free 2-night stay and “Caregiver Respite Experience” at Nancy’s House in the Philadelphia area.
Nancy’s House is a non-profit organization dedicated to caring for caregivers. Their program is designed to address the isolation, exhaustion and self-care needs of the caregiver.
While on retreat, homecare will be provided for the caregiver’s loved one. Also provided to the caregiver will be two undisturbed nights sleep, massage therapy, serviced meals and a chance to engage in support groups with fellow caregivers and professionals.
To enter, caregivers are asked to send an email to SeniorsLatest@SeniorsA2Z.com briefly describing how the SeniorsA2Z website has assisted them in caring for an individual or a loved one.
The deadline for all entries is October 15, 2008. Winners will be announced October 31, 2008.
Seniors A2Z (www.seniorsA2Z.com) presents the growing marketplace of senior services in a consistent and easy-to-navigate manner. Designed as “the go-to” resource for seniors and their caregivers, the site provides free access to senior resources in categories such as Geriatric Assessments, Handyman Services, Food Delivery, Housing, Pet-Sitting, Self-Help Groups, Health Information, Hospitals, Relocation, and many more Federal, State and local agencies, not-for-profit and for-profit resources alike, all combined in one single indexed site. The site targets the needs of a growing population of seniors, predicted to double in size within the next 35 years.
Seniors A2Z was launched in New Jersey in 2007, and lists public resources in all states. The site has expanded resources in thirty states and will have the entire U.S listings before year-end, 2008.
Montgomery Senior Citizens October - December
Montgomery Senior Citizens
Oct-Dec ‘08
If you are a Montgomery Township or Rocky Hill resident who is 55 years and older, you are eligible to join. Call Sylvia Lewis, President 609-466-3148.
Sept. 30 Atlantic City Trip
Oct. 9 1 pm Mtg. Princeton Elks Lodge – Marie Tyson. Montgomery Health Dept. Speaking on Osteoporosis
Oct. 14 Trip to Brownstone – Bavarian Beer Festival
Oct. 28 Atlantic City Trip – Bally’s
Nov. 10 Trip to Hunterdon Hills Luncheon and Christmas Show
Nov. 13 1 pm Mtg. Princeton Elks Lodge
Nov. 25 Trip to Atlantic City
Dec. 11 1 pm Christmas Luncheon Princeton
Elks Lodge - Reservations Required
All programs are subject to change. EMS will do free blood pressure readings at monthly meetings. Call Muriel Kellenger for Atlantic City and regular trip reservations, 908-874-3626; Alice Garrison for Christmas party reservations, 609-921-8113. You do not have to be a member of the Montgomery Senior Citizens Group to participate in the above activities, if seats are available, with the exception of the picnic, Christmas luncheon, and monthly meetings.
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