Finally, a raise to monthly benefits for Social Security. I have all the details, everything you need to know, and the announcements that have been made right here on this topic.
As I am your one and only daily advocate, and I’m very much dedicated to you and this community to do all the research so that you don’t need to and to boil it all down into these short topics so that you can get the latest details hot off the wire each and every day as this information is being released. It’s a busy time right now. Information is changing very rapidly, but my dedication is to be here right by your side, making sure that you’re getting all these updates during this very busy time and taking advantage of any money, benefits, programs or anything else that continues to pop up right now.
All right. So it has been a long, long time coming. But finally, we have some more information on a raise to monthly benefits for those people receiving Social Security retirement, SSDI disability, and survivors benefits. Now, I want to talk through the details because this encompasses about 63 million beneficiaries, a lot of people, and there’s a lot of money on the table right here. So I want to make sure that we all recognize what is going on, where all of this is coming from, and what was recently announced out of CMS centers for Medicare and Medicaid Services.
Not bad, right? Yes, they did officially make an announcement on this, and I wanted to talk about this and give you all the details as far as everything that we know as of right now. Now, I do know that there are a lot of people right here in the community that do receive these monthly benefits, as well as a lot of low-income SSI beneficiaries, VA, seniors, elderly people with disabilities, a lot of great people right here in this community. And I want to make sure that we’re all staying tuned with everything going on. So here’s the deal.
There are multiple different pieces of legislation out there right now that we all recognize, right? We’ve talked about them previously in other videos, but we’ve got the Social Security 2100, we’ve got the SSI Restoration Act, as well as we’ve got the proposals and the piece of legislation, as well as the plans out of people like the President. We have the plans out of other representatives like Al Lawson, John Larson. We have the piece of legislation and the plans out of Bernie Sanders. We have all kinds of different plans out there right now to ultimately raise benefits, make sure that the programs are solvent for many more years to come into the future, all kinds of different things.
However, this is completely separate, and I want to talk through this one, even though all of these other pieces of legislation and the pieces of information that are out there, like I just mentioned, those are great, too. And those may be coming up here relatively soon as well, based on the research. But this other one that we’re talking about in this video is even completely separate from that. So let me kind of give you the background on this and where all this is standing as of right now. It’s still a lot of things up in the air right now.
There are moving parts on this one, and we’re still waiting for a little bit more information on this one. But CMS, Centers for Medicare and Medicaid Services was just out making another announcement on this, and I want to give you the latest details. So here’s the deal. As we know, last year, in November, they released and announced the Medicare Part B premium increase for 2022. Well, I think all of us were a little bit shocked by these numbers.
14.5% is what the Medicare Part B premium came in at. Right? Well, it effectively came in at a $21.70 cent raise every single month. That’s a lot, especially for people who are living on a small fixed income. To say that they have to pay another $21.70 every single month is a lot.
Right. I mean, that’s like a lot of money on a monthly basis. So anyway, as we continue to go forward after that announcement, there was a lot of pushback on that. Even people like Bernie Sanders were getting letters that they were sending saying, you got to reduce this premium. This is nuts.
You can’t be doing this much. We’ve got to do something to reduce this premium. Well, all of these months later, it’s been a lot of months here. It’s a very slow process, as you can tell. Here’s the deal.
Cms was just out the other day giving us another update on this. Now, about a week and a half ago. It was about a week and a half ago or so, they came out and announced that they would be allowing this very expensive Alzheimer’s prescription at Uhlm, right. We’ve talked about this in previous videos. It costs $56,000 per year per patient.
However, they cut the price in half to $28,000 a year. It’s still a lot of money. Right. 28 grand a year per patient who has this prescription. Well, here’s the deal.
We’ve been waiting for this official announcement for quite a while now. Well, about a week and a half ago, they came out and said that they would be offering this prescription item just for those patients who agree to enroll in a clinical trial. Okay. Well, that’s going to really reduce the number of patients who are actually going to be eligible for this very expensive prescription item. Therefore, all of these 63 million beneficiaries of Social Security, SSDI survivors, and Medicare, the 63 million Medicare beneficiaries have been paying in this extra 14.5% premium so far in 2022, all of these months so far.
Well, here’s the deal. We’ve been waiting for this official announcement out of Medicare to determine what they’re going to do with this very expensive prescription going forward. Well, they gave us the announcement it’s only going to be eligible for those people who are enrolled in a clinical trial, therefore reducing the number of people that will actually be eligible to take this prescription. Therefore, we’ve all been paying into as a result of this massive Medicare Part B premium. However, CMS Centers for Medicare and Medicaid Services was just out a couple of days ago and they announced that they are considering the reduction of the Medicare Part B premium going forward.
This is good, right? This is a good thing because here’s what it translates into. If they’re taking less money out of your check every single month as a result of the Medicare Part B premium, guess where that difference is going to go. Yes, in your bank account. I know.
Sounds weird, right? We don’t talk about this all that much lately because there’s not that many things out there that are actually beneficial to fixed income beneficiaries right now. Let’s be real for a second. We’re all waiting for additional money. We’re all waiting for a raise.
We’re all waiting for additional stimulus checks. We’re all waiting for something additional to help us get more money on a monthly basis, because fixed income benefits these days are not going very far, especially with all of these rapidly rising prices and inflation on literally everything right now. Right. So the fixed income benefits that you’re getting are staying the same, but yet that purchasing power, as in how much you can buy with that money becomes less and less and less, which seems to be almost on a daily basis, which probably isn’t too far fetched. Right?
Well, here’s the thing. As they continue to go forward with this as announced by CMS just a couple of days ago, they did come out and say that they are considering the reduction of the Medicare Part B premium going forward. This means if you’re paying let’s just say $170.10 right now for the Medicare Part B premium, which is exactly what it is, $170.10, provided you’re not paying any kind of penalties because you didn’t take Medicare Part B right away. Again, that’s a totally different topic. We can talk about that in a separate video.
If you’re paying just the standard $170.10 Medicare Part B premium right now per month. If they reduce that, let’s just say they reduce it down to $160. Again, I’m just giving an example. We don’t know what it’s going to be quite yet. If they reduce it down to $160, that means it’s an extra $10 that you were paying going forward this year that you won’t be paying.
Therefore, where does that extra $10 go? Well, it’s going to basically just go right back in your pocket because let’s just give you a quick example. Let’s just say, for example, you receive $1,000 every single month right now as a result of your Social Security benefit, right? Again, this is just an example. I know there’s a lot of you here that don’t receive $1,000.
I’m just using $1,000 because it’s an easy mathematical kind of equation here, right. It’s easy mental math. That’s why I’m doing $1,000. So if you’re receiving $1,000 right now, your gross benefit is $1,000. However, let’s just say that they take $170 out of that for the Medicare Part B premium.
That reduces you down to $830 a month. However, you get that 830 and they take 170. However, let’s just flip the tables a little bit here. Let’s just say that they reduce the Medicare Part B premium down by $10 to $160 a month. Therefore, let’s run the same equation.
$1,000 gross benefit minusing off the Medicare Part B premium brings you down to $840. Right? So now you got an extra $10 in your pocket every single month. Kind of makes sense, right? So at the end of the day, I totally get it.
It’s not a ton of money. We’re not talking about $1,000 a month. We’re not talking about $500 a month. We’re not even talking about $100 a month. We’re talking about ten, maybe 15.
Who knows how much dollars? We don’t know that quite yet. They have not announced a dollar amount yet, but rather they are working through the equations. They’re running the calculators. They’re running all of the different numbers here and determining, okay, how much can we actually reduce the Medicare Part B premium going forward for the 63 million beneficiaries to actually reduce the premium?
Because, oh, wait, I guess we don’t need that much money on a monthly basis because now the number of patients that will be eligible for that very expensive Alzheimer’s prescription is going to be significantly reduced. Therefore, they don’t need to continue collecting an extra $11 every single month from all of us.
The 63 million beneficiaries to account for this very expensive prescription item makes sense. Therefore, they’re going to reduce the premium and then essentially give us back what the difference would be. Now, the main question that I want to know for this all is still remaining out there, and I don’t have an answer for you quite yet because they have not announced it, and I haven’t been able to find anything on it yet, which is what about all the months that we’ve already paid on the increased premium? Are we going to get a refund? What’s going to be the deal here?
Are we out that money or are we going to get some kind of prorated refund? What’s going to happen here? I want to know what’s going to happen for all these months that we’ve already paid on the premium at the higher levels, what’s going to happen? Are we going to get a little bit of money back, or do we just kiss it goodbye and say, oh, well, I guess it’s just gone and we can’t get it back. So I guess that’s one of my main questions right now is are you guys going to send us a little check back?
Maybe $40 or $40, whatever it happens to be as far as the refund and how much they’re going to reduce the premium? Are we going to get that reduction in premium as in the difference refunded back multiplied by the number of months? Makes sense. And what happens if it takes them three months to implement this? Are we just out that money going forward?
You kind of get what I’m saying here. So I want to do what I can to get those answers for you. We don’t have the answers quite yet Because that hasn’t been revealed yet. However, that’s going to be a big answer that I want to know the answer to or a big question that I want to know the answers to Because I know there’s a lot of you here that could really use that extra $30, $40, $50, whatever it happens to be going forward. So I’ll get to the bottom of it.
I’ll keep digging as I continue to get more of these announcements, but this was just announced a couple of days ago from CMS, the centers for Medicare and Medicaid services. I’ve been watching this one closely and these are the latest announcements that we just got from them. So as I do get more information as far as how much they’re going to reduce the premium for Medicare part B, of course, I’ll be right back here for you breaking it all down and let you know what’s going to go on. And of course, I’ll bring you any new announcements that I find for you, but this is good. At least they’re considering something.
And these days, honestly, it’s not all that often that we continue to see anything that really comes out that is beneficial in the favor of fixed-income beneficiaries. So the simple fact that we’re getting this announcement Is kind of a big win for us, right? It’s pretty exciting. Even though we’re doing everything we possibly can to get additional money, additional benefits, anything else in the form of stimulus checks, permanent raises, the Social Security 2100, the SSI restoration Act, as well as so many other things that are out there right here, right now. So again, I hope this one helps you out and of course, keep you updated with everything going on.
Stay safe out there and I’ll catch you later in the next update during this very a busy times.