The Social Security Administration began issuing debit cards last year to those who did not have direct deposit and wanted an easier way to receive their monthly benefits other than by check. SSA has always had problems with checks being lost, stolen or delayed in the mail. With the advent of direct deposit, much of this problem was resolved. But there were many who did not have bank accounts.

And paying benefits digitally rather than by paper is a big savings to SSA. It cost about $1.00 to mail a paper check and only 10 to 12 cents to do it by automated transfer. With the 500,000 people already signed up for the debit card, it is saving the SSA about $440,000 each month. And SSA needs every one of those dollars!

Along came the debit cards. Each month, the amount of the Social Security benefit is added to the card. There are no fees for signing up and you can get one free replacement card each year if you should lose the card.

Sounds like a safe and easy way to receive your money. It is if you use it carefully and know about additional fees that can be charged if you are not careful. Some of those fees include a $4.00 charge for a second replacement card in a year, $.75 for a monthly statement by mail, $.90 for each ATM withdrawal after the first one, plus additional fees if you use an out-of-network ATM machine, which seem to be difficult to find. If you need cash, your best bet is to get cash back when you purchase something.

This is a very positive step by SSA in resolving many of the problems revolving around lost, stolen, or delayed checks. Kudos for SSA!

It’s rumored that there will be no cost of living adjustment (COLA) for 2010. And the Congressional Budget Office (CBO) is saying that there might not be another COLA until 2013.

But Medicare Part B (doctor’s insurance) premiums will continue to increase. There is no slowdown in health care costs. Most current Social Security recipients are protected from having their benefits reduced due to Part B premium increases under a “hold harmless” provision in the law.

Medicare Part B premiums are set up to cover about 25% of the cost of Part B insurance. The premium increases with COLA’s for 2010 to 2012 were projected to be $103 going up to $109.
Because 75% of those currently on Medicare won’t have their premiums increased, the FEDS have come up with a really equitable(?) way to make up for the loss.

All newly entitled Medicare beneficiaries will carry the brunt of the load. Their Medicare premiums in 2010 is projected to be $119, for 2011 $123, and for 2012 it is projected to be $128.

By 2012, a newly entitled Medicare recipient will be paying $259.20 more for Part B insurance than someone that is currently entitled to Medicare!

Just because of their date of birth or date of entitlement to disability.

For the same coverage!

Unfortunately, this is typical of our government. Chose a small group, with little or no voice and stick it to them.