Social Security announced the 2017 cost-of-living adjustment (COLA) for next year will be 0.3 percent. The announcement also stated the maximum amount of earnings subject to the Social Security tax will increase from $118,500 to $127,200 effective January 2017.
The good news is that there is a “hold harmless” provision that protects most retirees from increased Medicare Part B expenses when the Social Security COLA is low. However, people in the following situations will expect to pay higher Part B premiums next year:
- You’re eligible to enroll in Medicare for the first time in 2017.
- You’re enrolled in Medicare, but you aren’t collecting Social Security.
- You’re already subject to Medicare premium surcharges because you didn’t enroll on time and now you have to pay a penalty.