They say the road to hell is paved with good intentions and the federal government provided a really good example recently.
The good intentions come in the form of a Social Security Check cost-of-living increase of 0.3%. The downside is that complex formulas tied to the increase trigger a corresponding increase in Medicare premiums for approximately 30% of Social Security recipients.
One step forward, two steps back.
Unsurprisingly, Congress has been called upon by many including the AARP to stop the premium increase. The issue is still in flux at this moment. Although it seems that something may happen given that an appropriate solution was arrived at by Congress when the issue last arose in 2015.
This issue is of great concern to us at Generation Law, given our work with older clients, who will all use Medicare at some point.
During our estate planning process, we work with clients to ensure their estate is managed properly to ensure they don’t lose their homes to Medicare and they have enough savings to handle medical issues as their life goes on.
However this current issue is resolved, here’s hoping Congress or the feds get a handle on this and take adequate measures to ensure this completely foreseeable occurence doesn’t happen again.