What is the Medicare Part B Cost of Living Adjustment (COLA)

In 1973 the United States passed a law to assist those who didn’t have the funds to keep up with rising healthcare costs by passing the Medicare Cost of Living Adjustment in association with Medicare Part B.  With the passing of this provision in Medicare the people who may be left behind by rising healthcare costs and inflation were able to keep up.  The Medicare Part B Cost of Living Adjustment is designed to change every year with the expected change in healthcare and consumer prices.

Here is what Medicare wants you to know about the Medicare Part B Cost of Living Adjustment in 2010:  “In 2010, social security benefits won’t have cost of living adjustments. This is due to the decline in consumer prices and the expected low inflation.”

This leads to the following information as to how Medicare Part B will be assessed in 2010.  This is straight from the horse’s mouth in relation to Medicare Part B:

“Most Medicare beneficiaries will continue to pay the same $96.40 Part B premium amount in 2010. Beneficiaries who currently have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less ($170,000 or less for joint filers) will not have an increase in their Part B premium for 2010.

For all others, the standard Medicare Part B monthly premium will be $110.50 in 2010, which is a 15% increase over the 2009 premium. The Medicare Part B premium is increasing in 2010 due to possible increases in Part B costs.  If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $110.50 per month.”