SSA Announces There Will Be No Cost-Of-Living Adjustment (COLA) for 2016
For the third time this decade, millions of Americans will not see an annual cost-of living increase in their Social Security benefits for the year 2016. The news by SSA confirms what was already widely expected by many. In 2015, consumer prices were down. In fact, low gasoline prices helped keep inflation in check this year. Due to the decrease in consumer prices, monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 65 million Americans will not automatically increase in 2016. What is COLA? COLA is used to make sure that the purchasing power for people who receiving SSA benefits are not reduced by inflation. Will Medicare Premiums Increase? If there is an increase in Medicare Part B premiums, the law has a “hold harmless” provision that will protect about 70% of Social Security beneficiaries from paying a higher premium. In order to determine if your Medicare Premium will increase you must contact SSA at 1(800)772-1213. SSA will be able to assist you to determine if your Medicare premium will increase.