January 21, 2016
Social Security & Medicare Current Facts & Figures 2016
The Many Faces of Social Security
- Nearly 165 million workers contribute to Social Security through payroll taxes.
- Nearly 59 million people receive monthly Social Security benefits, including:
- 42.5 million receive retirement benefits
- 6.1 million receive survivors’ benefits
- 11 million receive disability benefits.
Social Security Cost of Living Adjustment (COLA) for 2016: 0%
2016 Social Security & Medicare Contribution Amounts
- Social Security: 6.2% for both workers and employers. This contribution is paid on earnings up to $118,500.
- Medicare: 1.45% for both workers and employers on all wages.
2016 Social Security Eligibility:
- Full Retirement Age: 66.
- Early Retirement Age: 62. Taking early retirement can reduce Social Security benefits up to 30 percent.
Social Security: When & How to Apply for Benefits
- You should apply for Social Security benefits three months before the date you want your benefits to start. You can apply in one of the following ways:
- Visit your local Social Security office. Call 1-800-772-1213 to find the office nearest your location.
- Call Social Security at 1-800-772-1213. If you are deaf or hard of hearing, you can call Social Security at TTY 1-800-325-0778.
- Go Online: https://secure.ssa.gov/iClaim/rib
The Many Faces of Medicare
- Nearly 165 million workers contribute to Medicare through payroll taxes.
- Approximately 57 million people receive Medicare benefits, including:
- 47.9 million individuals 65
- 9.1 million disabled individuals.
2016 Medicare Part A (Hospital Coverage)
- Deductible: $1,288 (first 60 days of Medicare-covered inpatient hospital care)
- Coinsurance: $0 (Days 1-60), $322 per day (Days 61-90)
2016 Medicare Part B (Physician Coverage)
*New beneficiaries and public sector retirees in this income category will pay $121.80.
2016 Medicare Part D (Prescription Drug Coverage)
- Monthly Premium: Varies by plan (higher-income consumers may pay more).
- Deductible: Varies by plan, $360 maximum.
- Doughnut Hole: $3,310 – $7,062.50. Beneficiaries in the doughnut hole will receive a 55% discount for brand named drugs and a 42% discount on generics.
- Cap on Out-of-pocket Costs: 4,850 (prior to catastrophic and excluding plan)
- In addition to a monthly plan premium, high-income individuals will pay an income-related monthly adjustment amount as noted below:
|Individual’s Income||Couple’s Income||Income-related monthly adjustment amount|
|$85,000 or below||$170,000 or below||$0.00|
|Above $214,000||Above $428,000||$72.90|
Medicare: When & How to Apply for Benefits
Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease. If you are already receiving Social Security retirement benefits, you will be automatically enrolled in Medicare Parts A and B. If you want to apply for Medicare, call (1-800-772-1213) or visit their website: http://www.socialsecurity.gov/medicareonly.