Last Thursday the Social Security Administration announced next year's cost of living adjustment for retiree benefits, and the news is not good. Thanks largely to falling gasoline prices, the index used by Social Security to adjust beneficiary payments for inflation is below what it was a year ago. That means no increase in seniors' monthly Social Security checks. At the same time, millions of seniors will have to pay much higher Medicare premiums. On top of that, every beneficiary will have to pay more up front before Medicare covers their doctors' bills. Although a political solution would block the increase, the problem will not be solved without structural reforms.
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