Once again, unless the federal government steps in to “fix” the problem with Medicare premiums before Jan. 1, 2016, we’re going to see some of America’s most needy take another financial hit.  This time it will impact some 15 million people, about 30 percent of the total number of seniors paying into Medicare who may see their monthly Part “B” premiums increase by 52 percent.

This problem is due to a quirk in the current 2016 law. The Center for Retirement Research at Boston College reports that, “…first-time beneficiaries or those currently claiming dual Medicare and Medicaid coverage will see their Medicare Part “B” premiums jump from $104.90 per month to $159.30 for individuals…[and] higher-income couples would pay multiples of that increase.”

According to the Fiscal Times, the mechanism that triggers the increase that punishes first-time receivers, dual-eligible (Medicare and Medicaid) recipients and wealthier beneficiaries, is a result of the low inflation rates. The Cost of Living Adjustment according to the government is near zero, and the government decided not to raise the 2016 monthly Medicare payment amounts as typically occurs in most years. The net result, the Social Security Administration made no changes to the 2015 annual cost of living adjustment – therefore no increase in your 2016 monthly check amount and that triggered the rate increase.

This may become a major problem because Medicare Part “B” is the part of the program that covers seniors’ visits to doctors, physical therapy, outpatient care and durable medical equipment such as diabetic and ostomy supplies. Part “B” for a majority of Medicare recipients is directly deducted from their Social Security checks by the government, and unless you’re on special program like Medicaid, there’s no avoiding having to pay Part “B.” If this happens, seniors living on fixed incomes may not be able to meet their basic living expenses.

While a $54.50 monthly cost increase may not seem like a great deal of money, for our lower income citizens, it can be the difference between having to decide whether to buy their required prescriptions or cut back on their food purchases for the month. Many seniors already break pills in half to stretch the dosage, and in the some instances, have simply stopped taking costly medications, like some cancer drugs, that they just can’t afford.

Sadly, for some people a cost increase of $54.50 per month will become a financial breaking point, pushing more seniors on to Medicaid, or leaving them in that void where they have too much money to qualify for Medicaid, but are too poor to afford their current living expenses.

If a change isn’t made before January, many new Medicare recipients as well as those dual-eligible (Medicare and Medicaid) in Western North Carolina will find themselves facing some very tough challenges in 2016.

Ron Kauffman is a consultant and expert speaker on issues of aging, Medicare and Obamacare. Ron is the author of Caring for a Loved One with Alzheimer’s Disease, available as a Kindle book on Amazon.com. His podcasts can be heard weekly at www.seniorlifestyles.net. Contact Ron at 828- 696-9799 or by email at drron561@gmail.com.