REVIEW: Don’t Lose Sleep Over The Medicare Premium Increase

The headlines are dire: “Medicare Premiums to Soar/Spike/Skyrocket (insert eye-catching verb of choice here) For Millions of Seniors.” Some well intentioned folks are even spreading the myth that you should claim your social security benefits now, just to avoid the increase.

But this increase isn’t as big a deal as journalists might lead you to believe…

Remember, journalists want to capture your attention, sell magazines or bait you to click a link. The more dire the headline, the better.

The overwhelming majority of articles out there, however, fail to mention some of these critical facts:

– It’s a temporary increase
– It only affects about 30% of Part B recipients
This has happened before
– As a dollar amount, it’s simply not that big
– Existing SS benefits will not be reduced as a result of the increase
– Don’t file for SS benefits early just to dodge the increase

This article does a decent job of outlining the important issues that should be considered by those who might be hit with the increase, although it doesn’t cover everything.

The big take-away here is this: Your social security claiming strategy is a BIG DECISION. The difference between an early claim and an optimized claim is typically more than $100,000 of lifetime benefits. Nobody likes a price hike. But don’t let a temporary total cost increase of several hundred dollars tempt you to abandon a strategy that could yield a hundred thousand.


McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.

The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.