 Social Security and Medicare
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2010 Social Security and Medicare Figures compared to the 2009 Figures
On October 15, 2009, the Social Security Administration "SSA" announced all of the 2010 figures. The Department of Health and Human Services "HHS" announced the Medicare figures on October 16, 2009. The table below is a summary of the new 2010 Social Security and Medicare figures compared to 2009. The Medicare Part D figures at the end of the table were released on April 6, 2009.
In 2010, the standard Medicare Part B monthly premium for 73% of the beneficiaries remains the same at $96.40 because federal law states that current beneficiaries’ premiums cannot go up more than the increase in their Social Security benefit – there is no increase in Social Security benefits for 2010. For the remaining 27% that includes new Medicare beneficiaries, high-income beneficiaries, and those whose Medicare premium is paid by Medicaid, the 2010 Part B monthly premium increases to $110.50 – plus income-related premiums for high-income beneficiaries (see the following table). About 5% of current Part B enrollees pay the income-related premiums.
For the first time in history, there is no 2010 cost-of-living adjustment (COLA). In 2010, the full retirement age (FRA) is 66 (also 66 in 2009). Some of the following Social Security program figures relate to when a person attains FRA.
2010 Social Security and Medicare Figures
Compared to 2009
| Social Security |
2009 |
2010 Just Released |
| Cost-of-living Adjustment (COLA) for December 2009
(payable in January 2010) |
5.8% (12/08) |
0.0% (12/09) |
FICA tax rate remains 7.65% for both employees and employers
- Social Security
- Medicare (Hospital Insurance)
|
6.20%
1.45% |
6.20%
1.45% |
Maximum Social Security earnings for tax contributions and benefits
Medicare taxable earnings |
$106,800
no limit | $106,800*
no limit |
| Earnings required to earn one credit (maximum of four credits per year)
| $1,090 |
$1,120 |
Retirement Earnings Test exempt amounts
- Under full retirement age (FRA), age 66, throughout 2010
- FRA in 2010 (period before the month FRA is attained)
- FRA and over
|
$14,160
$37,680
no limit |
$14,160*
$37,680*
no limit |
| Maximum monthly retirement benefit at FRA
| $2,323 |
$2,346 |
*Since there is no COLA increase, by law these figures remain unchanged in 2010.
| Medicare |
2009 |
2010 |
| Part A (Hospital Insurance) voluntary monthly premium if not eligible for premium-free Part A
| $443 |
$461 |
| Part A reduced monthly premium for persons with 30-39 credits
| $244 |
$254 |
Part B (Medical Insurance) standard monthly premium for 2010 for 73% of current Medicare beneficiaries
Part B (Medical Insurance) standard monthly premium for 2010 for 27% of beneficiaries (includes new and high-income people)*
File an Individual Tax Return File a Joint Tax Return
0 to $85,000 annual income 0 to $170,000 annual income
over $85,000 to $107,000 over $170,000 to $214,000
over $107,000 to $160,000 over $214,000 to $320,000
over $160,000 to $214,000 over $320,000 to $428,000
over $214,000
over $428,000
*Income brackets for beneficiaries based on their 2008 federal income tax return
filing status and adjusted gross income. |
$96.40
$134.90
$192.70
$250.50
$308.30 |
$96.40
$110.50
$154.70
$221.00
$287.30
$353.60 |
| Original Medicare Plan
|
2009 |
2010 |
| Part A inpatient deductible per benefit period |
$1,068 |
$1,100 |
| Part A daily coinsurance 61st through 90th days |
$267 |
$275 |
| Part A daily coinsurance for up to 60 "lifetime
reserve" days | $534 |
$550 |
| Part A daily coinsurance 21st through
100th days in a skilled nursing facility |
$133.50 |
$137.50 |
| Part B annual deductible |
$135 |
$155 |
| Part D (Prescription Drug Coverage)
monthly premium (estimate)
| $28.00 |
$32.00 |
| Part D deductible |
$295 |
$310 |
| Part D initial benefit limit |
$2,700 |
$2,830 |
| Part D catastrophic threshold |
$4,350 |
$4,550 |
Part D minimum cost-sharing for catastrophic coverage
Generic/Preferred:
Other: |
$2.40
$6.00 |
$2.50
$6.30 |
Other Social Security and Medicare Information
Employers make significant contributions every pay period – half of the total
15.3% – to Social Security on behalf of their employees. So, it is important
for employees to understand and value this 'hidden' benefit plan. To help you
communicate about Social Security, Mercer provides accurate and easy-to-understand
information. You can find the 2010 information plus much more in Mercer's Social
Security and Medicare publications. For the 2010 Guide to Social Security, visit www.imercer.com/guide. For the
2010 Medicare booklet, visit www.imercer.com/medicare. Visit www.imercer.com/socialsecurity for more information or to place an order for any of our publications.
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