 Social Security and Medicare
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2012 Social Security and Medicare Figures compared to the 2011 Figures
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On October 19, 2011, the Social Security Administration "SSA" announced all of the 2012 figures. The Department of Health and Human
Services "HHS" announced the Medicare figures on October 27, 2011. The table below is a summary
of the new 2012 Social Security and Medicare figures compared to 2011. The Medicare Part D figures at the end of the table were released on April 4, 2011.
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After two years with no cost-of-living adjustment (COLA), there is a 3.6% increase for 2012. In 2012, the full retirement age (FRA) is 66 (also 66 in 2011). Some
of the following Social Security program figures relate to when a person attains FRA.
2012 Social Security and Medicare Figures
Compared to 2011
| Social Security |
2011 |
2012
Just Released |
| Cost-of-living Adjustment (COLA) for December (payable in January 2011) |
0.0% (12/10) |
3.6% (12/11) |
FICA tax rate
- Social Security for employees (tax holiday in 2011)
- Social Security for employers
- Medicare (Hospital Insurance)
|
4.20%
6.20%
1.45% |
6.20%*
6.20%
1.45% |
Maximum Social Security earnings for tax contributions and benefits
Medicare taxable earnings |
$106,800
no limit | $110,100
no limit |
| Earnings required to earn one credit (maximum of four credits per year)
| $1,120 |
$1,130 |
Retirement Earnings Test exempt amounts
- Under full retirement age (FRA), age 66, throughout 2012
- FRA in 2012 (period before the month FRA is attained)
- FRA and over
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$14,160
$37,680
no limit |
$14,640
$38,880
no limit |
Primary Insurance Amount (PIA) formula – is the basic benefit formula used to calculate a person’s benefit and is applied to their average indexed monthly earnings (AIME). For people attaining age 62 or younger in 2012, the formula as follows:
90% of the first $ of AIME, plus
32% of the next $ of AIME, plus
15% of the remaining AIME in excess of
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$749
$3,768
$4,517 |
$767
$3,857
$4,624 |
| National Average Wage Index
| $40,711.61 |
$41,673.83 |
*There is proposed legislation that may change the 2012 employee tax percentage.
| Medicare |
2011 |
2012 |
| Part A (Hospital Insurance) voluntary monthly premium if not eligible for premium-free Part A
| $450 |
$451 |
| Part A reduced monthly premium for persons with 30-39 credits
| $248 |
$248 |
Part B (Medical Insurance) standard monthly premium ($15.50 decrease over the 2011 premium; $3.50 increase for most beneficiaries that were paying $96.40 due to the hold harmless provision of the law)
High-income Part B (Medical Insurance) standard monthly premium*
File an Individual Tax Return File a Joint Tax Return
0 to $85,000 annual income 0 to $170,000 annual income
$85,001 to $107,000 $170,001 to $214,000
$107,001 to $160,000 $214,001 to $320,000
$160,001 to $214,000 $320,001 to $428,000
over $214,000 over $428,000
*Income brackets for beneficiaries based on their 2010 federal income tax return filing status and adjusted gross income in 2012. |
$115.40
$115.40
$161.50
$230.70
$299.90
$369.10 |
$99.90
$99.90
$139.90
$199.80
$259.70
$319.70 |
| Original Medicare Plan
|
2011 |
2012 |
| Part A inpatient deductible per benefit period |
$1,132 |
$1,156 |
| Part A daily coinsurance 61st through 90th days |
$283 |
$289 |
| Part A daily coinsurance for up to 60 "lifetime
reserve" days | $566 |
$578 |
| Part A daily coinsurance 21st through
100th days in a skilled nursing facility |
$141.50 |
$144.50 |
| Part B annual deductible |
$162 |
$140 |
Part D (Prescription Drug Coverage) monthly premium paid to Part D plan
Income-related adjustment will be paid to Medicare as follows*:
File an Individual Tax Return File a Joint Tax Return
0 to $85,000 annual income 0 to $170,000 annual income
$85,001 to $107,000 $170,001 to $214,000
$107,001 to $160,000 $214,001 to $320,000
$160,001 to $214,000 $320,001 to $428,000
over $214,000 over $428,000
*Income brackets for beneficiaries based on their 2010 federal income tax return filing status and adjusted gross income in 2012. |
$30
Add $0
Add $12.00
Add $31.10
Add $50.10
Add $69.10 |
Average $30
Add $0
Add $11.60
Add $29.90
Add $48.10
Add $66.40 |
| Part D deductible |
$310 |
$320 |
| Part D initial benefit limit |
$2,840 |
$2,930 |
| Part D catastrophic threshold |
$4,550 |
$4,700 |
Part D minimum cost-sharing for catastrophic coverage
Generic/Preferred:
Other: |
$2.50
$6.30 |
$2.60
$6.50 |
Other Social Security and Medicare Information
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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 2012 information plus much more in Mercer's Social
Security and Medicare publications. For the 2012 Guide to Social Security, visit www.imercer.com/guide.
For the
2012 Medicare booklet, visit www.imercer.com/medicare. Please visit www.imercer.com/socialsecurity for more information or to place an order for any of our publications.
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