The Social Security Administration has authorized a 3.6% cost of living adjustment (COLA) increase which became effective on the first of the year. At the time this increase was announced there was speculation that the expected increase in Medicare premiums would significantly reduce, and possibly completely offset, any benefit increase. That has not happened, and the recently announced increase in Medicare Part B premiums has been much smaller than originally anticipated. As a result, most seniors will see an increase in their income in 2012.
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