If the Trustees' estimates are accepted and acted upon by Congress recipients paying the standard rate could see those premiums increase. Already, new recipients turning 65 years old, and who are entering the system in 2016, pay a standard premium of $121.80 per month. This is a 16% increase from the standard rate of $104.90 currently paid by those enrolled before 2016. If the Trustees predictions actualize in 2017 the new enrollees could see their standard premium increase to $149. If the 22% projected increase is across the board pre-2016 enrollees paying $104.90 could conceivably see their premiums rise to $128.00.

On the other end of the spectrum, in 2017 individuals subject to the Income Related Monthly Adjustment ("IRMAA") with income between $85,001 and $107,000 and couples with income between $170,001 and $214,000 could see monthly payment increases from $170.50 per person to around $204.40. Higher still are increases for couples earning more than $214,000 or $428,000, with monthly premiums rising from $389.00 to around $467.20.

In addition, all beneficiaries will see deductibles rise from $166 to $204 in 2017.

Barring any change to the City's Medicare Reimbursement Program, there should be no financial impact to NYPD Retirees other than the time lag associated with the reimbursements for both the Standard and IRMAA premiums. However, if the predictions are actualized there will be noticeable decreases in monthly net Social Security Payments or increases in Medicare billings that our Retirees should at least be aware of.

This also raises concerns about the solvency of the Medicare system, an alarm that has previously been sounded in other announcements and publications.

Matthew D. McGeever, CPA
Lieutenant CDS (Ret.) Director, SOAR
mattmcg1210@msn.com