Soc Security & SSI
Sent: October 19, 2000 1:15 PM
To: Bruce K. Melson
Subject: Soc Security & SSI to increase 3.5% in Jan
The Social Security and Supplemental Security Income (SSI) benefits will
increase 3.5 percent in 2001. This cost-of-living adjustment (COLA) is
based on the rise in the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) from the third quarter of one year to the third
quarter of the next, as determined by the Department of Labor.
Social Security beneficiaries will see this year's 3.5 percent increase in
January 2001. SSI recipients will see the increase in payments received
December 29, 2000.
Retirement Earnings Test Exempt Amounts:
As of January 2000, the Retirement Earnings Test has been eliminated for
individuals age 65-69. It remains in effect for those ages 62 through 64. A
modified test applies for the year an individual reaches age 65. (The Senior
Citizens' Freedom To Work Act of 2000, signed into law by President Clinton
on April 7, 2000.)
Year individual reaches 65
NOTE: Applies only to earnings for months prior to attaining age 65. One
dollar in benefits will be withheld for every $3 in earnings above the
limit. There is no limit on earnings beginning the month an individual
attains age 65.
Under age 65
NOTE: One dollar in benefits will be withheld for every $2 in earnings above
Medicare Premium Amounts for 2001
Part A (Hospital Insurance) Premium
Most people do not pay a monthly Part A premium because they or a spouse has
40 or more quarters of Medicare covered employment.
$300.00 per month (Note: This premium is paid only by individuals who are
not otherwise eligible for premium-free hospital insurance and have less
than 30 quarters of Medicare covered employment).
The Part A premium is $165.00 for those individuals having 30-39 quarters of
Medicare covered employment.
Part B (Medical Insurance) Premium
$50.00 per month.
Original Medicare Plan Deductible and Coinsurance Amounts for 2001
Part A: (Hospital Insurance)
$792.00 (Per Benefit Period)
$198.00 a day for the 61st - 90th day each benefit period.
$396.00 a day for the 91st - 150th day for each lifetime reserve day (total
of 60 lifetime reserve days - non-renewable).
Skilled Nursing Facility Coinsurance
$99.00 a day for the 21st - 100th day each benefit period.
Part B: (Medical Insurance)
$100.00 per year.
Information about Medicare changes for 2001 can be found at
Society of the 5th Division