Social Security: The Social Security Administration has announced that for the first time since 2009, there will be a cost of living increase in Social Security benefits in 2012.  Beginning in January, 2012, most Social Security recipients will receive an increase of 3.6% in their monthly benefit.

Medicare Part A: The Centers for Medicare & Medicaid Services have announced that in 2012, Medicare Part A, which covers inpatient hospital care, some nursing home care and some home health care will be increasing.  The deductible will increase to $1,024 in 2012 (in 2001 the same deductible was only $50!).  Medicare Part A co-payments will also increase: for days 61 through 90, the co-payment will increase to $289; for days 91 through 150 (lifetime reserve days) the co-payment will increase to $578.  The co-insurance rate for skilled nursing facility residents who are covered by Medicare will increase to $144.50 per day for days 21 through 100 per benefit period.

The overwhelming majority of Medicare beneficiaries do not pay a premium for Medicare Part A.  However, there are many seniors and persons with disabilities under the age of 65 who obtain Medicare Part A coverage by paying a monthly premium.   For those who have fewer than 30 quarters of medicare-covered employment, their premium will increase in 2012 to $451 per month.  For those seniors with 30 to 39 quarters of coverage, their premium will increase in 2012 to $248 per month.

Medicare Part B:  The Centers for Medicare & Medicaid Services also announced that in 2012, the Part B Medicare monthly premium will be $99.90 for most individuals.  Medicare Part B provides coverage for doctor visits, for a number of drugs administered by physicians in their offices due to the patient’s inability to administer them at home, out-patient services, some out-patient physical and occupational therapy, home care, and durable medical equipment. Additionally, the Medicare Part B annual deductible for 2012 will be $140.

Individuals with low-income may be able to receive assistance with the Medicare Part B premium costs, deductibles and co-pays if, in addition to receiving Medicare benefits, they also qualify for Medicaid benefits.  For those qualified, Medicaid will cover the costs of the Part B premium, deductibles and co-payments.

Medicare Part D:  For 2012, the Medicare Part D deductible for prescription drug coverage will increase to $320.  After paying the deductible, the individual is responsible for 25% of the next $2,610, or a total of $652.50.  The individual then falls into the “doughnut hole” where no coverage is provided.  The “doughnut hole” for 2012 will increase to $3,727.50.

To find out more information about your Medicare benefits including the Prescription Drug Program, you can visit the agency web site: www.medicare.gov.