Lisa Cutler, Director of Communications for the Alliance for Retired Americans, joined the America's Work Force Union Podcast to discuss the government shutdown's impact on Social Security beneficiaries and Medicare recipients. She addressed the delayed cost-of-living adjustment (COLA) announcement, potential Medicare Part B premium increases and challenges facing the Social Security Administration.
The government shutdown has postponed the annual COLA announcement for Social Security, affecting approximately 70 million beneficiaries. Preliminary estimates suggest a 2.7 to 2.8 percent increase, translating to about $52 more per month for the average beneficiary. Cutler emphasized that while this increase is better than none, many older Americans find it insufficient given rising living costs.
Medicare Part B premiums are expected to rise significantly, potentially reaching over $200 per month for the first time. This increase, coupled with the modest COLA, means the average beneficiary may only see a net increase of about $30 per month. Cutler stressed the importance of beneficiaries carefully reviewing their Medicare plans during the current open enrollment period, as prices and coverage networks may be changing.
The Social Security Administration faces unprecedented challenges, including the unusual situation of having a part-time commissioner who also serves as CEO of the Internal Revenue Service. This arrangement has increased wait times, staff reductions and service delays at Social Security offices. Cutler highlighted specific issues, such as longer processing times for new Social Security cards and reduced capacity for in-person assistance at local offices.
Listen to the full episode of America's Workforce Union Podcast for more detailed information on how the government shutdown is affecting Social Security and Medicare beneficiaries.