Omaha Residents, Medicare Insurance Company Concerned Over Social Security Increase

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OMAHA, Neb. (WOWT) – The New Year will bring extra cash to the checks of people who receive Social Security benefits, but how much will this 5.9% cost of living increase really mean for the millions of people who will get the raise when the checks come in 2022?

Michelle Ludacka receives social security, she supplements her check by working at Hairdresser. Michelle is happy to get the extra cash, but with the price of just about everything on the rise, she doesn’t think she’ll see a big change in her wallet once the dust clears.

“Probably not because I don’t know if it will really be even, but it will help. But with everything else being high, I don’t know what difference it will actually make, ”Ludacka said.

The Social Security administration says next year’s increase will be the biggest increase in nearly 40 years. Experts say increased social security will not stay in the pockets of seniors for long.

The benefit increase will come after a year of inflation, which has increased the cost of everything from food to rent. Carol Pflepsen-Bowery is still happy with the increase.

“I think it’s a nice surprise and whether or not it will offset the price increases, but I’m happy about it,” said Pflepsen-Bowery.

Kurt Fricke with A helping hand for higher revs, they help the elderly with Medicare. Kurt says seniors who receive Social Security and Medicare benefits might have to worry more than the high price of consumer goods.

“Their Medicare is going to eat it all up because for them to take a 5.9% increase in Social Security, then Medicare will increase their premiums and Medicare will increase their deductibles and their outlay. , these insurance companies are going to have to eat up that expense so that their premiums start to rise, so that 5.9 won’t last long, ”Fricke said.

Kurt has worked with Medicare for about 15 years. He says whenever there is an increase in Social Security Medicare also increases rates, he has watched it happen over the years.

“Give you a perfect example, last year Trump was 1.6%, okay that’s what they got for COLA Medicare which only increased its premiums by $ 5. What do you think they’re going to do when they go down to 5.9%? “

Kurt says that for those not on Medicare, this extra money on next year’s Social Security check will help drive up the prices of consumer goods, and for those on Social Security and Medicare, the increase in premiums will absorb this increase even more.

Many retirees pay their health insurance premiums out of their Social Security checks, so that increase may decrease before it reaches their bank accounts.

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