Social Security-Medicare for the @65 crowd

Since my time for Medicare eligibility is creeping up at its petty pace, I paid attention to this report out of the Kaiser Family Foundation, detailing how the cost-of-living-adjustments (COLAs) for Social Security (SS) and the Medicare Part B premium updates are going to interact for 2010 and 2011. And, since many of my friend-readers are in my age group, you should know about this too.
First off -- for 2010 and 2011, it looks like the SS COLA is going to be 0%. (If you're old, you did well in 2009 with your 5.6% COLA increase, so don't complain.) But Medicare premiums are going to increase, which means that your net SS check would decline.
But WAIT, there's a "hold-harmless" clause in the law that says -- with certain important exceptions outlined below -- if the extra Medicare premium exceeds your SS COLA update, the Medicare Part B premium will be adjusted down, so your net SS check doesn't decline. So, that means with a 0% SS increase, you won't have to pay more for the Medicare premium in 2010 and 2011. Great huh?
But WAIT... it might NOT help you, especially if you're around my age and are not going to be enrolled in BOTH SS and Medicare in 2009. (About 25% of all 2010 Medicare beneficiaries don't get the benefit.)
The three groups who will NOT benefit from this hold-harmless clause, and WORSE, who will actually pay for the entire cost increase for all 100% of beneficiares are as follows:

1. People who are NOT in both programs in 2009. That's US, baby, especially if we have our critical 65 birthday Jan 1 or after. Or, if we delayed taking our SS until the full benefit kicks in when we turn 66. So, if you're entering one or both programs (SS & Medicare) in 2010 or 2011, you'll be paying higher Medicare Part B premiums, not only for self, but for your older sisters (!!!!) and brothers who will be sitting pretty. (About 3% of 2010 Medicare enrollees fall into this category according to KFF.)
2. People who are "filthy rich." According to government, that's anyone who's in both programs in 2009 but whose "modified adjusted gross income" was $85,000 or greater for individuals and $170,000 or greater for couples. (For vast majority of us, MAGI=AGI. For full definition, click here.)- about 5% of Part B enrollees.
3. People who are in such dire straits that they're eligible for both Medicare AND Medicaid. They don't pay any Medicare premiums anyway..The Medicaid program pays Medicare on their behalf. (Medicaid is a shared Federal-State government program, so our tax dollars or Treasury debt will pay for this part of the Medicare population's increase.) (About 17% of 2010 Medicare enrollees.)

Bottom line? If you're in Group 1 and/or 2: get ready for a 2010 Medicare Part B premium of $104.20; if not, you have to pay only $96.40 a month. In 2011 it becomes even more Kafka-esque: You'll pay $120.20 if you come of age in 2011 (group 1) or if you're still rich. Your not-so-disadvantaged older sisters will still be paying $96.40.

If you want to complain to your congressman, see my post of April 29 on How to Contact your Congressman or Senator. As for me, I'm just going to accept this surcharge as payment for the many times sister Janet took me to the Castle Theater in Irvington NJ to see Sylvester and Tweety bird. She could have let go of my hand at Springfield and Clinton, and the world would have been spared my blog!

Message to Janet: You're going to owe me a steak dinner in 2011!