Social Security announces its cost-of-living adjustment

Social Security announces its cost-of-living adjustment, and Medicare releases key information about premiums and plan choices.
It's also the time of year when seniors can do something about the cost of healthcare. The annual Medicare fall enrollment began on Oct. 15 and runs through Dec. 7. During this period, you can make money-saving changes to your Medicare coverage and make sure your insurance coverage provides the best match of healthcare providers.
 
So far, the numbers don't look bad. Earlier this month, the federal government announced a 2.8% Social Security cost-of-living adjustment for 2019; seniors will see the raise in their January benefit payment. That is the largest increase since 2012, when the COLA was 3.6%.

Even better, most seniors will get to keep most of the COLA after it is adjusted for any dollar amount increase in the Medicare Part B premium. The premium typically is deducted from Social Security benefits; while the official number won't be released until later this year, the Medicare trustees forecast last summer that the standard premium will rise just $1.50 to $135.50. If that forecast holds up, most beneficiaries will keep most of the COLA (the math varies among beneficiaries due to the quirky recent history of the "hold harmless" rule, but roughly 70% of beneficiaries will get the full COLA next year minus whatever dollars increase is announced for the standard Part B premium, probably in November).
                                             
Shopping for Plans
Even if you like your current coverage, it can pay to take a careful look during open enrollment. The design of your prescription drug plan coverage can change annually, and Advantage plans can make changes to their networks of healthcare providers at any time.
Start your shopping process by reviewing the Annual Notice of Change letter that arrives each autumn from your Medicare prescription drug or Advantage plan provider. The Annual Notice of Change details any changes in rules for cost-sharing, coverage of specific medications--and even whether a specific drug will be covered.
 
For drug plans, the average Medicare prescription drug plan premium is projected to rise 2% to $42.21, according to analysis by the Kaiser Family Foundation--a weighted figure reflecting actual enrollment in the most popular plans. Importantly, that figure assumes that current enrollees don't switch plans.
 
But premiums for specific plans can fluctuate widely from year to year, so pay attention to whatever rate is announced in your Annual Notice of Change. According to the Kaiser Family Foundation, among the top 10 plans, average premiums will range from a low of $28 per month (Humana Walmart) to $76 (Humana Enhanced). Among the top 10, premiums will increase for five plans, fall for three, and remain unchanged for two plans, based on current enrollment, the foundation reports (see table below). And a larger share of plans will charge a deductible than in 2018--71% of plans vs. 63% in 2018.
 
Useful Resources
Medicare Plan Finder: Use Medicare's official plan shopping site to identify good-fit plans. Plug in your Medicare number and drugs (you will need each drug's name and dosage). The plan finder then displays a list of plans that match your needs, including their estimated total cost (premiums and out-of-pocket expenses); which drugs are covered; and customer-satisfaction ratings. The finder also will give you advice about drug utilization and restrictions.Enrollment FAQ: The Kaiser Family Foundation offers this handy FAQ page on Medicare enrollment.
 
FOR MORE 2019 MEDICARE OPEN ENROLLMENT INFORMATION PLEASE CLICK HERE
 
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