1/1/2007
SOME OF THE SOCIAL CHANGES EFFECTIVE TODAY
January check will include a cost of living increase of 3. percent.
This year the monthly premium for Medicare Part B is based on adjusted gross income. It is increased to $ 93.50 ( basic). For some beneficiaries with income over $80,000 ( single individuals) and those over $160,000 ( married couples) that premium will be higher.
Your out of pocket deductible will increase to $131 for Part B.
Medicare Part A ( hospital coverage ) deductibles and co insurances have increased to $992 per benefit period.
For hospital stays over 61 days through 90 days ( no co insurance for the first 60 days) the co insurance is $496 per day, up from $476 in 2006.
If you are transferred to a skilled nursing facility there will be no co insurance for the first 20 days. For 21 through 100 days the co insurance will be $124 per day, an increase of $5 per day. MEDICARE DOES NOT COVER STAYS BEYOND 100 DAYS.
Taking Social Security retirement and continuing to work? Between age 62 and 64 you will be allowed to earn $12,960 ( $1080 per month) before benefits will be reduced $1 for every $2 over the allowable amount.
After reaching age 65 reduction will be $1 for every $3 earned over the allowable amount.
If early retirement is taken in the year that full retirement age will be reached, allowable earnings will be will be $34,440 ($ 2870 per month) before affecting benefits.
When full retirement is reached there is no limit on the amount that can be earned. Those born in 1942, full retirement age is 65 years and 10 months. Born from 1943 through 1954? Full retirement is 66.
If you assigned your Medicare benefits to a Senior Advantage Plan ( an HMO or PPO), there may be additional premiums. Blue Cross offers two PPOs: Freedom Blue I with no monthly premium and a $1000 deductible, and Freedom Blue II with a $50 monthly premium and a $500 deductible.
If you need to enroll in a prescription drug plan ( Medicare Part D ) and failed to do so, you will now have to wait until the open enrollment period for 2007, which will be November 15, 2007 through December 31, 2007.
